Yes, If you have other income like W-2 income, interest income, or other business income that exceeds the $80,000 loss, your total income will be reduced by the total loss. Your deductions will be calculated and your taxable income from that.
Schedule E income or losses affect your total income, not your tax due specifically. When you enter your Schedule E information TurboTax will determine your allowable loss against your income and any potential carryforward that will apply to 2022.