tax question /foreign person / local partner

[Jonty R.]

Hi. I am planning to buy a condo with my friend and have couple of tax related questions. I am a foreign national living abroad. we are buying a condo for $500,000 with 20% downpayment and a mortgage which will be in my friend's name. Bank wont take me as a co-borrower because of my residency status. I will provide 100% of the downpayment and idea is that my friend will return me 50% of the downpayment in next few years and we will own property 50-50. Now bank wouldn't loan him unless i certify that i am giving a gift to my friend for the entire downpayment (otherwise it will add as debt to him and he wont qualify for the loan). So questions

1) Would he incur any taxes on this $100,000 downpayment "gift"? 

2) my name would be on the deed. For IRS purpose, is this considered as 50%-50% ownership? If not, what could be done to make it 50%-50% ownership for IRS purposes!

3) when we sell would cost base considered as $500k/2 for both of us or any different given that for the purpose of buying 100% downpayment came from my friend (as i "gifted" that money for getting the loan)?

I am checking with a tax consultant but thought will also bounce here as there are lots of experienced folks on this forum.

Many thanks

Jonty