Freedom Checks is a term that is undoubtedly familiar to most people who have been listening to their radios for the past few months. In the commercial, the voice-over explains how individuals countrywide reap big from the $34 billion payouts. Vaguely, this term sounds close to a federal program associated with the government. But what exactly are Freedom Checks?
Well, most people seem inquisitive, in an effort to understand what this program is all about and how it works, especially due to the fact that it sounds closer to a federal payment plan. This tax-free investment program is not run by the government. Its existence is made possible through Statute 26-F of the federal law. This program provides a way through which over 550 energy-related companies can send a certain amount of money to their investors in a given period of time.
The energy-related partnerships, commonly known as Master Limited Partnerships play various roles in the oil and natural gas industries. They are responsible for fuel transportation, oil well drilling, and refinery operations. By giving investors 90 cents per dollar of their total earnings, MLPs are able to qualify for tax exemptions.
Freedom Checks are similar to dividends because of the way they operate but most MLPs prefer to call them distributions. It is interesting to note the huge sums shareholders receive of up to $160,000 in a single quarter. In contrasting fashion, traditional securities provide payments that are less 50 to 67 percent. Furthermore, MLPs are exempted from the federal income tax, a policy that provides good incentives to Americans to adopt the lucrative energy sector investment.
So, how is it that the federal government allows MLPs operate a business without paying taxes? This tax exemption came into play through president Nixon belief in maintaining the nation’s independence through large-scale energy production. He went ahead to facilitate a law that ensured rewarding of people investing in domestic energy companies. The program also spreads its wings to other opportunities of a similar nature such as real estate investments. The real estate investment trusts or REIT, allow property owners to earn tax-free money.
In order to receive more cash from this program monthly, a larger sum is required for investment. However, individuals can begin by purchasing shares worth $50 to $100 per each share. There are more positive considerations that highlight Freedom Checks’ legitimacy in the long run.
Freedom Checks: Youtube