Q: A SMSF purchases a property in joint names – between the two trustees as joint tenants and the SMSF (tenants in common). The conveyancing document says the title statements show the ownership as 60% SMSF and the Trustees 40 % . However the trustees have used 79% of the SMSF funds to purchase the property. How do we prepare the financials and tax return to reflect the true ownership? For instance should the asset be 60 % and the excess monies treated as a loan from the SMSF to the Trustees?
I am unable to respond to the specifics of this question because it will be deemed to be financial advice, and I am unable to provide financial advice. I suggest you speak to an adviser, or your adviser (if you have one) to determine your next steps, because there appears to be a few compliance issues involved as well as practical issues in relation to ownership. I suggest you also talk to the conveyancer about your options.
Note also that a SMSF cannot lend money to SMSF members/trustees.