I have a friend who's father is looking to sell his M11/9. The primary issue is that he is in SC and I am in NC. So, obviously this gun needs to go to a dealer in NC. Can the double transfer taxes be avoided (legally) by him transferring the MG to a Class III dealer in SC and then that dealer transferring the MG to my dealer in NC. As I understand it that would require multiple transfers and therefore a longer wait. I would be happy to pay double the tax to speed up the process, but the M11/9 includes a suppressor as well, and I really don't want to pay a total of $800 in taxes so I can get a used suppressor that I don't really need. The price he is asking is reasonable for a M11/9 without the suppressor, but he doesn't want to sell just the gun and keep the suppressor.

Any input?

Thanks!

+1 to the above. In addition to that, I am sure you are aware of NC's goofy MG laws, right?

Dealers can transfer between each other via tax free form 3. Any transfer to/from an individual is on a form 4, and taxable. From what I recall, you can have the seller transfer the MG directly to YOUR dealer on a Form 4. Then, your dealer transfers to you on a form 4. 2 transfers take place, 2 taxes paid for said transfers (assuming a single NFA Item). In your case, I do not beleive a tax free transfer would be beneficial, as it would be Form 4 from seller to his dealer, form 3 from his dealer to your dealer, then form 4 from your dealer to you. 3 transfers, but one of those is tax free. The result is the same amount of tax, but longer wait time, and possibly more FFL charges for transfering.

Mind you, it's been a few years since i've received an MG, so thing may have changed somewhat.

Non-SOT to Non-SOT = Form 4, $200 (only if within the same state)

For state to state transfers:

Non-SOT to SOT = Form 4, $200

SOT to SOT = Form 3, no tax

SOT to Non-SOT = Form 4, $200


Any time it crosses state lines, it must be SOT to SOT FFL.

Whoops, thanks Circuits

My friend is a FFL, but not a SOT. Does that mean that somehow his dad can transfer the gun on a form 4 to his son, the FFL, who can then transfer it to me? Or does a FFL in SC still have to be involved?

Didn't know that –– thanks. But it must come from an SOT?

Oh wow, I didn't know that. I always assumed the path for stuff to travel state lines between individuals was Form 4, seller to SOT in their state. Then when that cleared, form 3 SOT to SOT in buyer's state. Then form 4 from that SOT to the buyer.

So does the seller just use a form 4 to transfer it to any FFL in the buyer's state, then the FFL uses a form 4 to transfer it to the buyer?

Humm, what about a C&R 03 FFL??

You can, but it would be $200 to transfer it from out of state to you, as the C&R FFL holder, and another $200 to transfer it to your trust after that. There might also be some issues with making a transfer to your trust right after you get it, since a C&R license is supposed to be for collecting, not facilitating NFA transfers, but that is just my feeling, I have no experience in the matter.

At any rate, I couldn't do a MAC on my C&R since it isn't (yet). I ended up finding a MAC in NC for sale and made a deal on that rather than paying an extra $400 and waiting an extra 6 months for the one in SC.

No.