In 1987 Congress enacted a piece of legislation which is known as Statute 26-F. Statute 26-F created a new tax classification organizations that would allow specific companies to operate tax-free. Today there are 568 companies that meet the requirements of Statute 26-F. According to Statute 26-F if a corporation generates 90% of its revenues from the production, processing, storage, and transportation of oil domestically within the borders of the United States of America as well as periodically pays a portion of its revenues to its shareholders, then it can qualify to operate as a master limited partnership. These 568 companies issue periodic payments to its shareholders in the United States of America. These periodic payments were first popularized as a unique investment opportunity by Matt Badiali in a viral video where he referred to them as Freedom Checks. Read this article at Affiliate Dork.
Matt Badiali has been a member of Banyan Hill Publishing Company, one of the world’s leading publishing companies for investment and financial advice columns, for a number of years. While he has been in the finance industry for the majority of his career before joining the finance industry he already had a substantial career in academics as a trained scientist. Matt Badiali has a Masters degree from Florida Atlantic University in geology. He was undergoing work for his Ph.D. and teaching classes in geology at the University of North Carolina whenever a member of the finance industry contacted him. This individual was in the process of creating a team of researchers who would assist him in the creation of financial advice columns. This individual realized the benefit of having a trained geologist on his team as he was creating advice in the natural resources and commodities markets. He offered Matt Badiali a position on his team that would allow Matt Badiali to travel the world and see firsthand the operation of corporations. Learn more about Freedom Checks at Release Fact.
It was during the research for a project in the oil and natural gas industry that Matt Badiali first learned of the existence of master limited partnerships in the periodic payments that these corporations make to their shareholders. Matt Badiali realized the significance of this unique investment opportunity and quickly coined the term Freedom Checks in reference to them. Perhaps the most exciting thing about Freedom Checks is that they are a tax-advantaged method of investment as any income generated from them is treated as a return of capital and is only subject to the much lower capital gains rate of tax and not personal income tax rates.