Matt Badiali has piped the interests of millions of viewers upon his recent viral video around a unique investment opportunity that he has referred to as Freedom Checks. Freedom Checks are a real investment opportunity and not a bad idea. Freedom Checks referred to the periodic payments from corporations which are known as master limited partnerships. A master limited partnership is a classification of organization allows companies in the oil and natural gas industries in the United States of America to operate with zero tax liability. The classification master limited partnership was first introduced to the US economy in the 1980s as the United States of America was seeking ways to incentivize corporations to hasten the speed of America’s quest for energy independence. Visit stockgumshoe.com to know more. In the 1980s Congress passed a piece of legislation referred to as Statute 26-F. As a result of Statute 26-F if corporations were able to meet a list of requirements, they could qualify to operate tax-free. Obviously, this is an incredible incentive for corporations to meet this requirement.
In order for a corporation to qualify to operate as a master limited partnership, they must do two things. First, they must produce 90% of their revenue from the production, processing, storage, and transportation of oil and natural gas here domestically within the borders of the United States of America. Additionally, the corporation must also pay out a portion of its revenues to shareholders on either a monthly or quarterly basis. It is these periodic payments that Matt Badiali refers to whenever he speaks of Freedom Checks in his viral video. Read this article about Freedom Checks at Banyan Hill.
Perhaps the most interesting thing about Freedom Checks is that the income that is produced from these investments is treated as a return of capital and not as personal income. As a result of it being treated as a return of capital, it is only subject to the much lower capital gains rate of tax instead of personal income tax rates. These periodic payments are very similar to dividends that you would receive from investments in the traditional stock market other than being treated as a return of capital. As such Freedom Checks represent a unique opportunity for investors, who wished to create regular streams of income without increasing their personal income tax liability. Matt Badiali first discovered these investments whenever he was doing research for a project involved in the oil and natural gas industries. It was during this time that he first was informed about Statute 26-F from some of the world’s leading oil and natural gas experts.