2 man partnership dispursement of profits

[Ryan McBride]

My partner and I decided to buy a condo to flip in about a 6 months timeframe. He purchased it under his name as his primary residence and we decided (with a binding contract of course) to split all profit 50/50 and to try and split the expenses with the rehab 50/50 as well. Originally the plan was for him to move into the unit after it was fixed up and he would refinance it under a new loan, and refund all my repair costs and then split the profit with me.

Here is the problem:

We decided to right out sell the property once we're done with it instead of refinancing. When we go to the closing table with our buyer, there will be a big fat check issued in his name (somewhere in the ballpark of 50k).

What I want to know is... wont the IRS look at me funny if I suddenly deposit 25k in one day and try to tax me on it as personal income? I have the contract and everything lined up for an agreement between us, but i'm afraid that the money will be taxed because it's not set up as a proper person to person loan.