Freedom checks have been called “Cash Grabs“. Freedom Checks are an opportunity for individuals to take advantage of distributions paid out to those who support American oil and gas drillers. These United States-based oil and gas drillers have acquired the status of Master Limited Partnerships (MLPs) and what that means for investors is even more money received without a built-in tax expense. Visit stockgumshoe.com to know more.
The IRS treats MLPs differently. When an MLP pays out money, it is considered a distribution, not a dividend. Instead, they are considered a reduction in the cost basis and not taxed like dividends. The owner of a MLP unit is only taxed when the MLP is sold. When you buy a unit in an MLP, you are considered a limited partner. MLP partners must report income on a K-1 Schedule (1065 tax form) to the IRS. MLP partners do not pay taxes at the corporate rate; they pay at the income rates.
Matt Badali has made it clear that Freedom Checks are available for those who are willing to buy them. Section 7704 of the Revenue Act of 1987 limited which companies could form MLPs to those that generated 90% of its income from transportation, the production of natural resources like minerals, processing and storage. Freedom Checks can be obtained from MLPs with relative ease.
MLP units trade like stock on the stock market, so potential owners just need to do their research on which MLP they would like to own units and then purchase it from a broker. Matt Badali makes a strong case for why the MLP is a place for many to invest. The potential for making a lot of money is great and most of those payouts assume with limited taxation.
Matt Badali’s extensive knowledge of natural resources given his education and professions as a geologist, professor and leading investment advisor has prepared him to be the ideal spokesperson for this trend in ownership of MLP units. Badali has traveled the world researching mines and oil wells and taught geology at the college level at Duke University and the University of North Carolina. He regularly meets with mining company CEOs and precious metals experts and stays abreast of all the latest trends and newest technologies. Therefore, he is often asked to make investment suggestions to investors. The most strongly recommended piece of investment advice, Badali has offered the public at large is to invest in MLPs that payout Freedom Checks yielding unlimited sums to those who own units. Read this article about Freedom Checks at Banyan Hill.