@Opus 17 @NCperson
I know we've discussed this already, but according to question 16 on https://www.irs.gov/individuals/international-taxpayers/freque[product key removed]ions-on-virtual-c..., you recognize a capital gain or loss if you exchange virtual currency held as a capital asset (which is what I am doing) for other property, "including for goods...". This would directly contradict what you are both saying. Look up a definition of "good" - it is NOT defined as "something held for investment" or similar. The Q&A on this is extremely clear.
It simply does not matter what kind of good you are trading virtual currency for, it only matters if your virtual currency ITSELF is being held for personal use or for investment. Seeing as I have no clue how to use BTC as a personal use item (seriously, how could that be done?), it is clear that I am allowed to claim a capital loss.
