Final answer:
Jamie's loss from selling investment real estate for less than the purchase price is categorized as a Section 1231 loss, which typically applies to depreciable business property. The specific nature of the investment and its use in trade or business distinguish it from capital, ordinary, or Section 1244 losses.
Step-by-step explanation:
When Jamie sells investment real estate for $80,000 and incurs a $15,000 loss, the type of loss is specifically categorized under tax law for the purpose of taxation. A capital loss typically occurs when a personal asset is sold for less than its purchase price. However, in the context of investment real estate, it is essential to determine the nature of the property and how it was used to identify the correct type of loss.
Section 1231 typically applies to losses related to property used in a trade or business and subject to depreciation. A Section 1244 loss is related to small business stock. Without additional context indicating that the real estate was related to a small business or was specifically small business stock, it is less likely to be a Section 1244 loss. An ordinary loss is a loss on business or trade transactions that are not capital transactions. With the given information, Jamie's loss is best categorized as a Section 1231 loss, assuming that the real estate was used in Jamie's trade or business and was subject to depreciation.