Posted: 5/28/2014 10:20:59 AM EDT
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Can a police department transfer an NFA item to an individual tax free on a form 5?
Assuming it is transferrable and not a Post 86 machine gun or on a form 10 from a seizure. |
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Theoretically yes. The Form 5 is for a tax-exempt transfer. One of the "eligible categories" for tax-free NFA transfer is that the weapon is being transferred to or from a government entity.
Go to the NFA forums for this kinda stuff, OP... GD is a terrible place to get any kind of advice. 
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Yes, a police department CAN transfer a qualifying NFA firearm to an individual on a Form 5.
Read Question 1 on a Form 5. The second reason listed is :"Tax exempt transfer to or from a government entity". Form 5 If your local PD has a bunch of 870 SBS' and wants to sell them to local citizens, they may do so and the transfer is done, tax exempt, on a Form 5. |
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What is for sale? I call dibs... 
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Thanks guys! I knew I could get it eventually over in the NFA section, but I had the chief on the phone and needed a quick reply so I threw it in GD!  I call dibs...
Just a suppressor. The P.D. is buying it, but wanted to know if they ever dispose of it if they would have to pay the tax to transfer it to a different owner. Used suppressors are kinda hard to move and this would be a little extra incentive if they ever want to get rid of it. |
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Quoted:
Yes, a police department CAN transfer a qualifying NFA firearm to an individual on a Form 5. Read Question 1 on a Form 5. The second reason listed is :"Tax exempt transfer to or from a government entity". Form 5 If your local PD has a bunch of 870 SBS' and wants to sell them to local citizens, they may do so and the transfer is done, tax exempt, on a Form 5. I stand corrected. Just checked my NFA Handbook and to/from a PD is tax exempt. Ive done a shit ton of LE transfers but they were aleays "to" and I never noticed the word "from" before 
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