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Non-dealer to Dealer transfer question


Armydoc0115
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Hey Everyone!

For the more experienced FFL/SOTs (I'm a baby SOT....had mine a little over a year) I have the following question about taking NFA items from non-dealers:

I have been reading the regs, and ATF says that a non-dealer to dealer transfer is done on a Form 4. My question is whether the typical Form 4 transfer times apply when a dealer is the transferee. Logically, I'm not sure why it should take as long, when they regularly approve me within six weeks on dealer-to-dealer. Unless you tell me that they are extensively checking the guy that already has the item, I'm not sure why I'd need that when accepting it under my FFL/SOT. Then again, it's the ATF and government...

A second question: If I take it under my FFL/SOT, does it stay on a Form 4 or change to a Form 3? Or does it only get redone on a Form 3 if/when I transfer it to another FFL/SOT?

-David

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Do not listen to me as I have no idea, but I think you would do a form 3 to the dealership then a form 4 from your dealership to you if you want it to go to your private inventory. That way you get to take possession of it sooner and the form 4 wait is a non event.

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If it comes from a non SOT to you it is a taxable transfer. They do go quicker than a transfer to a non SOT. How much quicker is difficult to pin down.

 

Once you take this in and still have an SOT it can transfer tax free to another SOT.

 

As others have often said, guns are not on forms and whether a tax is due upon transfer all depends on to whom the gun is going to or coming from. Every transfer requires a specific form based on the transferee's status at the time the transfer is filed.

 

Say you decide not to pay your SOT for 3 years, then pay it again and decide to transfer a gun out. Once you pay the SOT again the gun can go out to another SOT without a transfer tax. Should you transfer it before you pay the SOT, it will be a taxable transfer even if you retain your 01 license. Once an item is in your possession regardless of your licensing or SOT status at a future date, no further filing is required on that item or any form change.

 

When you say NFA items I'm going to assume you mean transferable MG's, suppressors, etc. For this discussion I'll also assume you have an 01/03 setup. Should you be moving DD's some other rules can apply or as an 02/07 there can be other rules as well depending on the transaction.

 

Probably the best way to look at having an SOT is that it's a "bulk payment" of the taxes vs. individual tax payments. If you do a lot of transfers the tax savings can be very substantial. If you do two a year.....not so much. HTH

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John,

Thank you for the explanation. And yes, it's a 01/03 set up. Over the past year, I have done mostly suppressors and MGs, but these have been F3 transfers. Now, I'm expanding a bit and there has even some interest in purchasing from individuals. So this answer clears things up quite nicely for me. Thank you.

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