Freedom Checks is a term referred to the payments that are paid to investors in Master Limited Partnerships on a monthly or quarterly basis that was made popular by investment advice expert Matt Badiali. Matt Badiali is a member of Banyan Hill Publishing Company who is best known for his popular investment advice column Real Wealth Strategist.
Matt Badiali began his career in academia and was working as a professor of geology at the University of North Carolina whenever he was contacted by a member of the financial industry who is in the process of constructing a team to help create investment advice the natural resource in commodities markets. This financial expert offered Matt Badiali a position that would involve him traveling the world reading firsthand members of the natural resource commodity industries. Matt Badiali took this opportunity and soon was traveling the world meeting with the leaders of the various corporations in the natural resource industries. It was during a project involving research in the oil and gas industries that Matt Badiali was informed of the existence of Master Limited Partnerships. Read this article at Affiliate Dork.
Master Limited partnerships are a tax classification for corporations in the oil and natural gas industries. In the 1980s Congress enacted Statute 26-F in an effort to drive America’s quest for energy independence forward. Statute 26-F specifies that if a corporation generates 90% of its income through the processing, distribution, production, and transportation of oil and natural gas domestically within the borders of the United States of America and if the corporation pays out a portion of these earnings to its investors on either a monthly or quarterly basis in the corporation qualified to operate tax-free.
It is these monthly and quarterly payments that Matt Badiali is referring to whenever he speaks of Freedom Checks. Any income that is generated as a part of these Freedom Checks is treated as a return of capital and not as personal income. As a result, the income that is generated from Freedom Checks is subject only to capital gains rate of tax which is significantly lower than personal income tax rate. Additionally, if an investor were to sell his shares in a Master Limited Partnership the proceeds generated from the sale would also only be subject to the lower capital gains rate of tax. Investment in a Master Limited Partnership’s represents a good way for the investor who desires to increase their revenue streams without increasing their personal income tax liability. Read more: https://moneymorning.com/2018/03/08/the-truth-about-freedom-checks-not-a-scam/