sharing the tax burden with investors - new to flips

[Sabino Gonzalez]

I started investing in real-estate 3 years ago. I have 5 rental units and I am real happy with the returns I have with my rentals. I want to continue in the rental business but I want to expand and start doing flips as they become available in my area. I have found the perfect property to flip and I have a friend/coworker who is willing to finance the deal 50% with me. We will split the purchase cost and all repair cost. However he does not want to be involved at all. He will basically just put money into my account and I will purchase property, do the rehab on it and then when it is sold we will split the profits 50/50.

However since everything will be in my name it will look like I received all the profits at the end of the year when taxes are due.

I know we can set up a partnership or create an LLC where we are both the owners....but he does not want to do any "extra" work. He would rather just leave the money in his bank account.

What can I do so that I am not stuck with half of the profits but all of the tax burden?

Thank you and I wish I had found this BP 3 years ago and not just this year!