@Opus 17 Thanks for the clarification. However, the definition of "recognize a loss" (which is the wording they use in the Q&A) is that you can deduct the loss from your taxes. You may be thinking of "realize a loss" which means what you've been saying: a realized loss may have no impact on taxes depending on personal-use, etc.
Since they use "recognize", it is clear that virtual currency losses are always deductible when exchanged for goods and services.
