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Posted: 4/24/2012 5:21:34 PM EDT
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I have a 12 in. 870 that I am thinking about selling but have no idea of the procedure.
How does it work? Do I have to go through a class 3 dealer on both ends? Can I use my regular shop to transfer to a class 3 dealer? Who holds the gun while waiting on the ATF? Will i have to wait months for the money? What happens to my tax stamp, is it cancelled? So many questions. 
Thanks, Thump |
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Did you buy or build the SBS? If you bought on a Form 4, then it's the same procedure to sell it.
If you built this on a Form 1, then you should probably rethink selling it. Form 1 SBSs don't have a large market since most people prefer to make their own as well. |
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As I understand it, if you are selling to an individual in another state, there will be two 200$ tax stamps, one for transfer from you to an in-state NFA dealer and one from the receiving NFA dealer in his state to the final buyer. If you are selling it to another individual in your state then there is only one $200 transfer tax. It might be more trouble than it's worth to sell a short-barrel shotgun, since apparently there is not a big market for them and it's much easier to just make one on a form 1. There are some police trade-ins out there, which is what I ended up buying. Once it is transferred you no longer need to retain the stamp. Stamp collectors sometimes buy old NFA stamps, but recently their price seems to have gone down, probably because there are so many NFA stamps out there these days. Read this thread for more info on used stamps: http://www.stampcommunity.org/topic.asp?TOPIC_ID=14063 |
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Quoted:
As I understand it, if you are selling to an individual in another state, there will be two 200$ tax stamps, one for transfer from you to an in-state NFA dealer and one from the receiving NFA dealer in his state to the final buyer. If you are selling it to another individual in your state then there is only one $200 transfer tax. Actuallly, the seller can transfer directly to the buyer's NFA dealer out of state. Anyway as mentioned if you are selling out of state, that will be $400.00 in taxes. In-state will be $200.00 total in taxes. So keep that in mind if when you post your ad, you may have to offer to pay the first tax when selling out of state or it won't be worth it from the buyers point of view if they have to pay $400 in taxes. |
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Quoted:
I did not realize you had to pay a tax to transfer to an out of state dealer, that makes no sense. There is a tax paid when a non SOT FFL holder individual (or trust or corp) transfers to a SOT FFL holder, doesn't matter if they are in state or out of state. There is no tax paid when SOT transfers to another SOT. |
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Correct. Any time a private individual (or entity, like a trust) is involved in a transfer, a transfer tax must be paid. Licensed manufacturers and dealers pay an occupational tax once a year, so they don't pay transfer taxes for transfers between them.
The OP's best bet is to try to market the SBS within his home state. That way there will only be one tax, which any purchaser would be paying anyway. This takes the sting out of it. Find an in-state buyer, file the Form 4 between the two of you, and go ahead. |
| You could sell to someone in your state on a Form 4 and not deal with a dealer at all and only pay one tax. The other choice is simply take the barrel off and sell the barrel-less shotgun as a title 1 weapon (no paperwork required, but I might write the ATF and tell them the barrel has been removed and ask them to remove it from the registry). Then just sell the barrel separately on gun broker or whatever. |
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