How to claim proceeds on 1099 at the end of the flip

[Harel Nadav]

Hi All,

My question is a little complicated but I am sure (or at least hoping) i am not re-inventing the wheel here :).

I went into a deal (flip) with a partner. We purchased the house at $500K ($495 to be exact), under our own name (title).
25% down which we both contributed equally to. The rest was mortgage under my partners name ONLY.

In the process of the renovation, my partner alone put the money from which we paid all contractors, bought material and made tax, mortgage and insurance payments (~$150K).

We are about to sell the house and my attorney is asking us how should he do the 1099's from the proceeds.

My questions are:

1. Does the 1099 makes a difference? if so what should be the right distribution?

2. If the 1099 does not make a difference, how this is claimed at the end of the year?

Thank you in advance for your assistance