If Duffy owned 50% of Fox Corp.'s stock, what was his share of the ordinary loss for that year?

In determining Duffy's share of the ordinary loss for Fox Corp., it is essential to recognize how ownership percentage influences the allocation of losses within an S corporation or similar entities. Since Duffy owns 50% of the stock, he is entitled to claim 50% of the losses incurred by Fox Corp., provided these losses are passed through to the shareholders.

If Fox Corp. reported an ordinary loss of $4,000 for the year, Duffy would calculate his share by taking half of that amount due to his 50% ownership stake. This results in a share of the ordinary loss amounting to $2,000.

Therefore, if the total ordinary loss for the corporation aligns with the calculation allowing Duffy to claim half of it, then the correct answer would be the share of $2,000. This method of loss distribution is a fundamental principle in corporate tax situations, particularly concerning partnerships and S corporations where taxation occurs at the shareholder level and not at the corporate level.