Freedom checks are usually issued by companies that are known as Master Limited Partnerships. These companies usually major in the energy industry where they engage in activities such as production, refining and transporting oil and gas. They invest in the exploration of new oil and gas wells, extraction of the oil and transport them through variously established oil pipelines. In order for a company to qualify to be a Master Limited Company, they must pay a minimum of 90% of the revenue it gets from its ventures to the shareholders. Currently, there are more than 500 Master Limited Companies that are making these monthly payments to the shareholders.
These Quarterly payments from the Master Limited Companies are the same as the share dividends. Nonetheless, because they are treated as a return on capital instead of income, the investors are exempted from paying taxes on these freedom checks. Again, if you decide to dispose of your MLP investment, the profit you will get from the sale will only be subjected to lower capital gains tax instead of the higher personal income tax. This offers additional income tax benefits to the investors. Another benefit of Master Limited Partnerships is that their shares are very easy to buy. Like the traditional way of buying the normal shares, one can receive his or her freedom checks either through the mail or have it deposited into his or her brokerage account.
Therefore, investments in Master Limited Partnerships can help one generate substantial incomes. For example, Matt Badiali has gained so much wealth for himself and his followers. The government of the United States allowed the MLPs to avoid taxes as a way of maintaining its independence by producing more energy. Consequently, he supported the development of a law that would eventually benefit investors in the energy industry. Despite the fact that one needs larger investments so that one can receive a substantial amount of income, Americans were encouraged to start buying the shares with as low as $50 in spare cash. Therefore, investors can take advantage of Freedom checks as they offer a high rate of return making their money to grow over time. Learn More.