The legitimacy of Freedom Checks

Freedom checks derive their name from Badiali. However, the checks are grounded on strategies that deal with real investments. Although the checks sound like they are run like a federal program, they are neither managed nor run by the government. However these investment opportunities would not be possible without statute 26-F that allows at least 500 firms that operate in the energy sector to send generous checks to the respective shareholders and investors.

Freedom checks are issued by firms known as master limited partnerships. Abbreviated as MLPS, the firms pay their investors a return of their money on a quarterly or monthly basis. Investors make their investments in these firms by purchasing units of a firm and receiving their yield depending on the company’s performance. Most of the MLPS are either energy or gas companies that use the business structure of publically traded partnerships. This business structure combines the advantages of the partnership with the benefits of a public company. This combination is beneficial since the companies do not have to pay taxes like the ordinary corporations. MLPS only qualify for these tax exemptions by paying their investors at least 90 cents for each dollar they earn.

Freedom checks have a lot of similarities with dividends. However the common term for freedom checks among MLPS is “distributions”. Depending on the type of investment, the shareholders could earn up to $160,000 each quarter. MLPS and the investors are exempted from the federal income tax. However, the shareholders are expected to pay a considerable amount of tax on their capital gains made from selling their shares. These tax policies are significant incentives for citizens to make more investments in the energy sector.

Most people wonder why the government would allow the MLPS to avoid paying their taxes. According to President Nixon, the only way the USA could maintain its independence was through the production of more energy. With this in mind, the former president motivated the enacting of a law that rewards Americans who invested in the gas and oil sectors. The concept of freedom checks is accompanied by several other business opportunities. This includes the investments trusts offered for real estate investments that also feature a tax free option. This allows property owners to earn income from their rental property.

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