How to sell a machine gun - NOOB questions

willbdavis

willbdavis

Joined
Mar 19, 2008
Messages
2,774
Likes
473
Location
Worcester, MA
Feedback: 12 / 0 / 0
I'm hoping one of the experienced machine gun NESers can help me understand the procedure for selling a machine gun. I have found a buyer for my machine gun - out of state. The buyer is working with a Class III dealer in his state who will handle the transaction on that end. If it matters the machine gun is C&R eligible. I have a C&R license. I have agreed to pay the first tax stamp.

Now what?

I believe the process begins with a Form 4 transfer from me to the Class III dealer in the buyer's state. Do I prepare the Form 4? All of it? Part of it? Who submits it to the appropriate authorities? Do I ship directly to the buyer's Class III dealer or does this have to be performed by a Class III dealer in MA? Anything else I need to know?

If anyone would be so kind as to provide a step-by-step, or direct me to this information, I would be most grateful.
 
I believe you have to form 4 it ($200) to a FFL in your home state, and have it sent to the out of state FFL, then he form 4's it ($200) to the buyer. I could be wrong, but that's my assumption.
 
Dude, contact an experienced Class3 dealer or find someone here who has dealt with class 3s. One of the big issues is payment. It takes 6 months to get paid on these things and you need to escrow the money or you can end up on the short end of the stick if you are not smart.
 
Thanks terraformer. Maybe once I successfully complete the transaction I'll back fill this thread with an outline of the process for anyone else who might wish to know.
 
willbdavis said:
Thanks terraformer. Maybe once I successfully complete the transaction I'll back fill this thread with an outline of the process for anyone else who might wish to know.
Click to expand...

Great thread idea, and if you use an escrow service/bank/etc, please fill people in on that, too, and what your experience dealing with them was.

-Mike
 
willbdavis said:
Thanks terraformer. Maybe once I successfully complete the transaction I'll back fill this thread with an outline of the process for anyone else who might wish to know.
Click to expand...

Sounds good. And BTW, I just saw a post by cekim and his name is now orange. That means he is officially out as a dealer apparently so I guess I can post that he has a 01, 07, SOT, etc and may be able to help. PM him.

There are two other Class 3 people on NES but one doesn't do retail and the other I don't know if he takes clients still. But hopefully someone here will be able to assist. I wish I could be of more help but beyond being a wet blanket, I have little to offer on this one.
 
All cash/ check up front. You can fill the form out with a your info and have the dealer fill in the rest.
If all the info on your for form4/5 is current you can fax /pdf to the dealer and have him fill it out.
If the gun is C&R and the buyer has a C&R send it direct to the buyer and save the buyer 200.00 in taxes
If you fill out the form 4 for the dealer, you send it to the dealer. You are only left with Fex Ex to ship MGs if you are not a class 3 dealer. You can ship direct to the dealer after the four 4 is approved.
 
Last edited:
I'd like to think that I'm semi retired from the gun business but I still help folks to bring in NFA stuff from out of state for transfer to them. That's easy because the item is paid for by the time it gets to me so all we have to do is the transfer to the buyer. Don't even think of putting $$ on a MG unless you have the Green Card and KNOW that your PD will sign off on the Form 4. Jack.
 
Thanks Jack. I'm actually trying to go the other direction. I sold my MG to someone who lives in Indiana. Now I'm trying to figure out the rest of the process.
 
BriMac said:
All cash/ check up front. You can fill the form out with a your info and have the dealer fill in the rest.
If all the info on your for form4/5 is current you can fax /pdf to the dealer and have him fill it out.
If the gun is C&R and the buyer has a C&R send it direct to the buyer and save the buyer 200.00 in taxes
If you fill out the form 4 for the dealer, you send it to the dealer. You are only left with Fex Ex to ship MGs if you are not a class 3 dealer. You can ship direct to the dealer after the four 4 is approved.
Click to expand...

So I have the information for the dealer in Indian, including his FFL number. So I should fill out the Form 4 with my info and his an then send it to him? I agreed to pay the first tax stamp. Who submitts the paperwork to the gov't?

Still confused I guess.
 
You can fill out the form with your info and his, send it to him with the 200.00 check for the tax. He can look the form over and the dealer can send it in.
 
You need to do a tax paid form 4. The dealer should know what to send to you to get the form approved. As has been said before, sit down with a dealer here who does this on a regular basis. Too much money involved to screw up. I'd like to help, but right now I just do the incoming stuff. Jack.
 
For a SOT buyer in any state or first transfer to an out of state SOT for a subsequent transfer to an individual buyer in that state, the same Form 4s are used, but photos, fingerprint cards, CLEO signature and 5330.20 are not required. The $200 transfer tax is still paid. For the individual buyer in another state, an additional transfer as described above will occur between him and the receiving SOT.

So if a Machine Gun is sold to an individual buyer in another state, the first transfer is to a SOT in the buyer's home state. The buyer's home state SOT then transfers the gun to the buyer in that state. This means there are two transfers with two transfer taxes or $400 total tax.
Click to expand...

The Transfer - Machine Gun Price Guide

Maybe this can help.
 
Go to ATFE website; open the PDF Form 4; type in all of your info "transferor"; type in buyers info "transferee" including his C&R number (you can put yours in but not needed). Be sure to copy firearm info from YOUR old form 4 exactly. Sign form 4 (both) Do not fill out the back; he will need to do that. You need 2 copies;mail both copies to the buyer for him to fill out the back. He will need Cert of compliance and a 200 check to be mailed to the address on the form 4. In about 6 months YOU will receive new form 4 (actually just the same one you just typed but it will have a tax stamp attached and be approved). UPS overnight his new MG to his address (you DID talk about who would pay for this right?). Then relax and have a beer. I would not start any of this without 100% funds upfront (unless he is a friend or you want to make other arrangements...but I want 100% from strangers) PM me if I can help further. jim
 

Similar threads

Machine Gun/NFA Shoot June 2nd
Replies
15
Views
587
kingson
kingson
H.4139 banning machine guns?
Replies
2
Views
327
Mountain
Mountain
How long do you wait to pick up approved Form4
Replies
3
Views
185
Caveman
Caveman
How to Legally Take Posession of Unregistered SBS?
Replies
23
Views
970
Asaltweapon
Asaltweapon
Is this a new record on eForm 1 approval time?
Replies
8
Views
555
Thirwell1216
Thirwell1216
Back
Top Bottom