50/50 profit split after it before accounting fhr capital gains t

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@SANDRA Hillhouse I have to preface this with I am not fully aware of your structure or situation so this is not official financial advice.

If you are structured as anything but a C Corp, you split pre-tax. If you are a C Corp, you file the corporate tax and then pay out dividends. For an S Corp, LLC, LP or similar you will do the tax on a K-1 for the split and you will add this into your tax return. If you did the flip with no structure at all, you split the profits but keep track of accounting and also split the expenses so that you each are taking 50% of the profit and expense. Then you will each file the capital gains on your personal tax returns.

Flips aren't taxed as capital gains. They are taxed as ordinary income. 

I would split the gross profit and you and your partner can then deal individually with your taxes. Chances are that their tax situation and yours will be different.