Investing Real Estate and Partnership Questions

[David Coffee]

Questions:

1. If you invest with someone and they are the one doing the leg work; How do you divide up a profit? Example:  Let's say I invest $40, 000 on a deal and my partner invest $10,000 on the deal but they are doing all of the legwork and I'm only giving the money: When we sell the property: how is the profit divided up? What's fair from a percentage standpoint?

2.  After I receive my profit: is there a document given during the sale of the property that I have to report on my taxes or is it my responsibility to report what my profit was from the deal?