George is a 50% general partner in GO partnership, a calendar year partnership. GO is not a passive activity to George. On January 1 of the current year, Georges basis in his partnership interest is $35,000, which includes his allocated share of GOs liabilities. This is also his as-risk amount. GOs liabilities remained the same balance from January 1 through December 1; a balance of 80,000. For the current year ended December 31, GO is expecting to pay both George and the other 50% partner a cash distribution of 35,000 each on December 28 th this year. George is expecting to report his own separate individual income of 200,000 this year. George contacts you on December 1 st of this year to discuss any potential problems you see for him in this scenario. Which one of the following is NOT a specific planning recommendation you would make to George and/or GO partnership?

a) Have GO partnership decrease its liabilities by December 31 st of this year b) Have GO partnership defer making the distributions until next year c) Have George make a capital contribution to GO partnership before December 31 st of this year d) No planning recommendations need to be made, because there is no potential problem that George actually needs to address