Freedom checks can be defined as a means of cash payment payable to all stakeholders of a partnership that publicly trades its shares in accordance with statute 26 of the U.S. Cash payment via the use of freedom checks was discovered by Matt Badiali. He was working for a renowned financial expert in a project that greatly exposed him globally. He met and interacted with the world leading CEOs of various companies in the Oil and Mining Industry. This exposed him to the world latest technological innovations and trends.Even though freedom checks sound like a government program, it is privately operated by various companies. The existence of this tax free business opportunity is based on a federal law that makes it possible for businesses in the energy industry to send their monthly checks to their stakeholders.
These businesses are called Master limited partnerships. They play a vital role in the energy industry. Master Limited Partnerships are involved in activities such as running oil refineries and transporting fuel through pipelines. For these firms to qualify for tax exemption they must forward 90 cents of every dollar they earn to the stakeholders.Freedom checks are similar to dividends through a majority of the MLPs call them distributions. Stakeholders can receive more than $160000 in every quarter of the year compared to traditional shares that generate low returns. These impressive investment returns by these freedom checks have drawn special attention by Reuters and Motley Fool.
The fact that MLPs are exempted from federal income tax gives the Americans an incentive to inject more capital in the energy sector. However, stakeholders are subjected to a small capital gains tax once they sell their shares. The government deemed it necessary to exempt MLPs from paying taxes so as to affirm US independence through energy production. Consequently, a law that benefited those who invested in the energy sector was formulated.The concept of Freedom check also revolves around several complimentary opportunities. For example, Real Estate Investment Trusts provide another alternative for tax exemption and a huge chunk of their income goes to the investors. Therefore numerous Real Estate Investment Trusts are gaining money from rental properties that they own.