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Friday, 06 May 2016 00:00

Pros and Cons of Privately Buying/Selling a Used Silencer or other NFA Firearms

MP SuppressedWe recently received a question about buying a used silencer in a private transaction from a seller who is not a Class 3 gun dealer (FFL/SOT). This topic generated the discussion we’re sharing in today’s blog by Arsenal Attorneys™. By the way, these comments are based on the assumption an Arsenal Gun Trust™ is being used to make NFA registrations simpler, safer, and covered by an estate plan. By the way, under the National Firearms Act, the legal term for a firearm muffler is ‘silencer’, although many people prefer ‘suppressor.’ Also, a silencer/suppressor is legally considered a firearm even though it is not a gun.

Generally, private sales, or transfers, of firearms are popular because they can provide the parties privacy, convenience, and possibly a good bargain for a hard to find item. While some states restrict or ban the private transfer of non-NFA firearms, NFA firearms may be privately transferred in most states if both parties involved are residents of the same state.

Legally speaking, before a transfer may happen between a seller (the transferor) and a buyer (transferee) who reside in the same state, the transferor and transferee would need to sign ATF Form 5320.4 (Form 4) and submit it with a tax payment. No gun dealer would be needed, subject to your state’s law. After ATF responds by issuing a tax stamp, the silencer may be transferred.

Financially speaking, is a used silencer worth transferring? Silencers typically lose value faster than other firearms. As far as the $200 tax payment for a new tax stamp, it would apply to the transfer of a used silencer or to the purchase of a new silencer. A used silencer could be an attractive option if it is rare and in good condition. Be careful, however, because it could be difficult to judge the condition of a silencer if you cannot examine its interior components. Nevertheless, a used silencer might be an attractive option during the current period when silencers are often out of stock.

What about the transfer of a used silencer from an out-of-state seller? Assuming you’re able to confirm the condition of the silencer, it’s unlikely to be a good deal because an interstate transfer would add more costs and time to the transaction. Here’s why. The seller would need to submit a Form 4 with a $200 tax stamp to transfer the silencer to his local FFL/SOT. Then that FFL/SOT would need to submit a Form 3 to transfer the silencer to an FFL/SOT in the buyer’s state. Then the buyer would need to submit a Form 4 with a $200 tax payment to transfer the used silencer from the local FFL/SOT to himself. Besides the added expense of the additional $200 tax stamp, both dealers would likely charge transfer fees. Of course, two Form 4’s and a Form 3 would require more time to complete. Please note, if the out-of-state seller is an FFL/SOT, then only a Form 3 to your local FFL/SOT and Form 4 to you would be required.

SerbuUsed NFA firearms other than silencers might be more attractive in interstate transactions. For example, tax stamps for AOW’s, such as the Serbu Super Shorty (pictured) are only $5. Machine guns are often so valuable that the extra $200 tax stamp are a relatively minor expense.

Bear in mind, starting July 13, the so-called '41F' rules will require additional paperwork to reigster NFA firearms. Our updated design for the Arsenal Gun Trust™ can minimize the effects of 41F

 

Arsenal Attorneys™ is perhaps the only law firm offering direct attorney-client relationship in nearly every state that allows NFA firearms—we use no middleman. Therefore we can provide you direct support when it comes to interstate issues, particularly if you or your successors relocate to another state.

If you’d to learn more about our Arsenal Gun Trust™ and begin the process for us to create your documents, visit this link.

Read 22444 times Last modified on Wednesday, 07 February 2018 20:57
Arsenal Attorneys

Arsenal Attorneys is a nationwide law practice with offices in Fairfax, Virginia near Washington, DC and in Rocklin, California near Sacramento. We serve large and small clients, often remotely. Depending on the client's location, our services include estate planning, civil litigation, criminal defense, business law, landlord-tenant disputes, real estate, and firearms regulations. Our team of attorneys is licensed to serve clients in over 30 states. Contact us today to discuss your goals.

 

 

 

 

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