The phrase Freedom Checks resemble a government controlled federal program, but it’s actually far from that. This non-taxable investment strategy enables more than 550 energy related companies to supply satisfying quarterly or even monthly checks to their investors and. The possibility of this unique concept resides from a federal law known as Statute 26-F.
Freedom Checks are indistinguishable from dividends, or distributions, as commonly referred to as by MLP’s, also known as “Master Limited Partnerships”. These firms perform diverse roles in the natural gas and oil sectors. Some of these include drilling new wells and operating refineries.
Giving investors 90 percent of all income is the main requirement in order to qualify for this unique tax exemption law. Nonequivalent to traditional securities who generally pay 50 to 67 percent less to their shareholders, The Motley Fool and Reuters recognized the impressive returns that these investments offer. One of the main benefiting factors for Americans to invest in the energy sector is the inapplicable federal income tax to these MLP’s and their shareholders. If and when these shareholders decide to sell their shares, they pay a much smaller tax on capital gains. American investors can thank President Richard Nixon for Freedom Vhecks, as he believed Americans needed to preserve it’s individualism by fabricating more energy; thus rewarding those who take action in investing in this sector. He accomplished this by creating and promoting this new concept that we now know as Freedom Checks. Americans now have the opportunity to be rewarded by a Freedom Check for investing in domestic oil and gas produced within.
Similar properties of this generous investing notion applies to the department of real estate. 90 percent of this investment trusts in this field goes to shareholders as well. Additionally, many traditional REIT’s earn capital from properties they own and later rent out. Generally speaking, Americans would need to invest a mighty amount of capital in order to see impressive monthly return Freedom Checks of thousands of dollars. However, a clever investor wanting to take advantage of this opportunity can start investing with as little as $50-$100 per share.