I want to sell an MP5 clone that is an SBR. It would be alot easier to sell as a pistol so I have been trying to determine if I can just put a pistol end cap on it and it won't be an SBR anymore.

I think I finally found the info that confirms this but I want opinions.

This is section 2.5 of Chapter 2 of the NFA handbook.

"Section 2.5 Removal of firearms from the scope of the NFA by modification/elimination of
components.

Firearms, except machineguns and silencers, that are subject to the NFA fall within the various
definitions due to specific features. If the particular feature that causes a firearm to be regulated by the
NFA is eliminated or modified, the resulting weapon is no longer an NFA weapon.

For example, a shotgun with a barrel length of 15 inches is an NFA weapon. If the 15- inch barrel is
removed and disposed of, the remaining firearm is not subject to the NFA because it has no barrel.
Likewise, if the 15 inch barrel is modified by permanently attaching an extension such that the barrel
length is at least 18 inches and the overall length of the weapon is at least 26 inches, the modified
firearm is not subject to the NFA. NOTE: an acceptable method for permanently installing a barrel
extension is by gas or electric steel seam welding or the use of high temperature silver solder having a
flow point of 1100 degrees Fahrenheit.

A shot pistol (“any other weapon”) such as an H&R Handy Gun may be removed from the NFA by
either disposing of the smooth bore barrel or permanently installing a rifled sleeve chambered to accept
a standard pistol cartridge into the smooth bore barrel. Modified by sleeving the barrel, an H&R Handy
Gun is no longer an NFA weapon because it now has a rifled bore.

Large caliber destructive devices that are not also machineguns can be removed from the NFA by
disposing of the barrel. If the barrel of a 37mm cannon is removed and disposed of, the remaining
weapon has no barrel or bore diameter. As an alternative, the barrel of a destructive device may be
functionally destroyed. To destroy the barrel of a destructive device the following operations must be
performed:

• Cut a hole, equal to the diameter of the bore, on a 90-degree angle to the axis of the bore,
through one side of the barrel in the high pressure (chamber) area.
• Weld the barrel to the receiver of the weapon.
• Weld an obstruction into the barrel to prevent the introduction of a round of ammunition. "

How did your "MP5" begin life? Was it originally manufactured as a "pistol" such as an SP89? If so, you should be able to return it to "pistol" configuration if you remove the buttstock and any vertical foregrip (if it has one) or convert it fully into a "rifle" with a min 16" barrel. If it began life as a "rifle" (such as an HK94) then it can never become a "pistol" only returned to "rifle" configuration. Once you have permanently restored it to a non-NFA configuration, you will want to notify ATF to remove it from the registry.

ETA- Not a lawyer and not an NFA expert, so if anybody who knows better would like to correct me, please do so.

ETA2- personally, if it a well done SBR, I would find an NFA Dealer to sell it on consignment. There is a demand for GOOD MP5-SBRs.

There is no official word that I know of from ATF that says its ok to return a SBR back to pistol and be free and clear of the title2 status.

It is a common belief that it is ok, but I fear it will take a court case to get the official approval.

It is ok for pistol to rifle to pistol, and it is ok for rifle to sbr to rifle, logic word infer then that pistol to sbr to pistol is legal - but we all know where logic stands with the ATF

You would be safer to pin a fake can on and sell as a rifle to avoid the NFA hassles

NO GO Zone OP.....

"(7)   The term “rifle” means a weapon designed or redesigned, made or remade, and intended to be fired from the shoulder and designed or redesigned and made or remade to use the energy of an explosive to fire only a single projectile through a rifled bore for each single pull of the trigger."  

Your ATF form 4 documents it was "made" into a rifle albeit short barreled.

It will be a rifle forever, regardless if the shoulder stock is removed.   The only way currently to remove an SBR from the purview of the NFA is to either destroy the receiver or install a barrel greater than 16" in length.

An SBR can NEVER be made into a pistol as a matter of statute.  (18 U.S. Code § 921)

A machinegun is another matter, but you stated SBR.

I talked to a specialist at the Portland field office and he told me it was above him, so he gave me the number of the Firearms Technology branch. Their recorded message says they can't answer civilian questions over the phone and instructed me to mail in my question. 90 day turn around. So I guess I will find out in a few months.

For now I am just going to try and sell as an SBR in my state.

Bump for outcome and thread preservation.

The local buyer and I ended up pinning and welding a fake suppressor to bring it to a 17 inch barrel and transferred as a rifle while sending a letter to the ATF to remove it from the registry.

Thanks OP!  Did you ever actually send ATF a letter?  I'd be very curious as to their response....

So you modified the gun and sold it without waiting for a response from ATF?

Yup. Why wait when you have a proven solution?  His original question was about it being made into a pistol.

This, I did send the letters in duplicate with attached copies of the Form 4 the firearm was on. I did not wait as advised by my FFL who has been doing this for a long time. I will advise when/if I get a response.

Got my letter back with a big stamp on the bottom and an agents signature saying the changes have been made to the registry.