Yes, sch E is for rental income and expenses reporting. Any loss from Sch E (being rental loss) will be reported on form 8582 and from there (subject to the limitations) will be reported on Form 1040 and offset against your other income.
Note that- regarding rental property losses-
If you own income property and actively participate in the management of the property and your adjusted gross income is less than $150,000, you can write off up to $25,000 in rental losses. However, the deduction is subject to phase out. For an adjusted gross income of $100,000 or less, you can write off $25,000 in rental losses. The amount of rental losses that you can write off is proportionately phased out between $100,000 and $150,000. For example, if your adjusted gross income is $125,000, you can write off $12,500 in rental losses in the year of the loss. If you are an active participant and your adjusted gross income is $150,000 or more, you can write off no rental losses on your tax return in the year of the loss but you can carry it forward.