Is my payment of $500 per month to my parents from rental income of $600 per month a loan, partnership distribution, some other expense, or not an expense at all?

I am in a partnership with me providing the capital and my biz partner providing the management (he lives in WW).  

If anyone reading this is interested in a partnership feel free to reach out.

The name is Limited Liability Companies and Limited Partnerships by Garret Sutton.

I am in the beginning stages of forming a partnership with another BP member, so I'm looking for some advice or suggestions on how to structure the deal.  

I have done a partnership before and then dissolve it when your done. 

If you are under age 59 1/2, then there is a 10% penalty as well.A self-directed IRA functions just like any other IRA as far as interactions with you; contributions, distributions, timelines, beneficiaries, etc.  

If you can find someone who needs capital but knows how to find the deals and get the work done and you provide the capital then you could have a good partnership. 

I am aware of the alternative lending options lease options, partnerships, bank mortgages etc I am sure their is many more. 

@rafael moray- hey thanks great idea that's exactly what I'm trying to do link up with sum experience and offer part of my liquid and my labor and make sumthing nice happen for both ends of anybody in Chicago area is interested in a partnership like this pm me lets go over sum ideas