Let’s examine what are Freedom Checks? According to crunchbase, “Freedom Checks are required cash payments made to all shareholders of publicly traded Partnerships under statute 26 U.S. Code 7704.” https://www.crunchbase.com/organization/freedom-checks#section-overview
Freedom Checks was founded in by Matt Badiali. They have between 11-50 employees. They are based out of Delray Beach, Florida.
Freedom Checks are not run by the government. It simply refers to a law that allows more than 550 energy related businesses to send a dividend either monthly or quarterly. The thing that makes it special is the tax treatment. You have tax benefits when you own units in a master limited partnership. Unlike dividends, which are taxed in the year that they are received, distributions from the master limited partnership are not taxed when they are received. The tax on the MLP is deferred, and the tax liability becomes due when you sell your interest in the MLP. To qualify for the special tax treatment, these companies must give investors 90 cents of every dollar in earnings. Visit kennedyaccounts.com to know more about Freedom Checks.
The law defines which companies qualify for these Master Limited Partnerships. Most all are energy companies. Energy could be oil, gas, timber, or biodiesel. It could also be any company that explores, develops, mines or produces, processes, refines or transports this energy. There are also some real estate investment trusts that have the qualifying dividend. These MLP’s can be bought in the stock market. Watch this video at Youtube.
You probably will need an accountant to help you with the taxes if you are going to invest in Master Limited Partnerships. It may be a good idea to invest in these companies, if you want to receive tax free income. The government gave this benefits so that Americans would invest in our own energy independence. President Ronald Reagan wanted to encourage all Americans to make it possible to eventually become energy independent because this law was passed under his leadership. He had enough forethought to see that we were too dependent on Arab nations in the Middle East. He wanted to give incentive to everyday Americans to make a difference in their future. He could see that being energy independent would enhance our freedom.