Yes, Patrick. This would be a capital loss, however, rather than an ordinary loss (which is deductible against ordinary income)
Also note that capital gains and losses are classified as long-term or short-term. If you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term. To determine how long you held the asset, count from the date after the day you acquired the asset up to and including the day you disposed of the asset.
From IRS: Capital gains and deductible capital losses are reported on Form 1040, Schedule D (PDF), Capital Gains and Losses, and on Form 8949 (PDF), Sales and other Dispositions of Capital Assets. If you have a net capital gain, that gain may be taxed at a lower tax rate than your ordinary income tax rates. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss for the year. The term “net long-term capital gain” means long-term capital gains reduced by long-term capital losses including any unused long-term capital loss carried over from previous years. Generally, net capital gain is taxed at rates no higher than 15%. However, for the years 2008 through 2012, some or all net capital gain may be taxed at 0% if you are in the 10% or 15% ordinary income tax brackets.
If your capital losses exceed your capital gains, the amount of the excess loss that can be claimed is the lesser of $3,000, ($1,500 if you are married filing separately) or your total net loss as shown on line 16 of the Form 1040, Schedule D (PDF). If your net capital loss is more than this limit, you can carry the loss forward to later years. You may use the Capital Loss Carryover Worksheet found in eitherPublication 550, Investment Income and Expenses, or the Form 1040, Schedule D Instructions (PDF), Capital Gains and Losses, to figure the amount eligible to be carried forward.
I still don't see you coming into the chat here, Patrick ... I'll move us the the Q&A mode, where you can ask any follow-up questions you may have ... Maybe that will help ... (We can still continue our dialogue there, just not in real-time chat as we can here)