The savvy investor is keen to keep his eye on the financial headlines in order to stay informed about the latest and greatest investment opportunities that present themselves. If you fall into that category then you have probably already heard about the popular investment opportunity that was first presented to the public by Matt Badiali an author at Banyan Hill Publishing Company. This investment opportunity is referred to as Freedom Checks in his video which quickly went viral after being released.Freedom Checks are a real investment opportunity that is the result of a special piece of legislation that was enacted by Congress known as Statute 26-F.
This legislation was devised as a investment way to incentivize corporations that operated in the oil and natural gas industries mystically within the United States of America. The Freedom Checks to which Matt Badiali refers to are simply a return of capital that is presented to investors on a regular basis throughout the year.You may be asking yourself what exactly makes this investment any different from a traditional dividend which is paid out on a regular basis by corporations to their investors. The biggest key difference is that dividends are traditionally subject to the standard income tax while Freedom Checks are treated as a return of capital and as such are only subject to the long term capital gains tax.
Now you may be seeing the bigger picture here. Any income that is treated as a return of capital and only subject to the long-term capital gains tax will have a much lower tax liability than traditional income.Mike Burnick has recently popularized a new investment form that he refers to as Trump Bonus Checks. In comparison to the Freedom Checks that Matt Badiali popularized, these Trump Bonus Checks are not really all that special. In fact all they are our traditional dividends paid out by corporations. These would be subject to the standard rate of tax. While individuals may be receiving larger dividends as a result of the lower rate of tax under the Trump administration there is really nothing different about these investments from a traditional dividend.