Selling an SBR

Fat Andy · Nov 15, 2016

So let's say I have an NFA registered SBR that I've decided to sell. How would I go about it in a private sale? Does the purchaser have to pay a Tax stamp on top of my price? Or is it considered a transfer of the tax stamp? Also this firearm is in a trust, could I simply add the person to the trust and have myself written out of it?

On a related question as far as etiquette, is it fair to include rd $200 tax stamp price I paid into my asking price, or is that something written off?

Thanks

DAVE_M · Nov 15, 2016

LALawman said:
So let's say I have an NFA registered SBR that I've decided to sell. How would I go about it in a private sale?

Contact Interstate Guns. They will help you out with the transfer.

See also:

https://www.atf.gov/firearms/docs/atf-national-firearms-act-handbook-chapter-9/download

LALawman said:
Does the purchaser have to pay a Tax stamp on top of my price?

Yes.

LALawman said:
Also this firearm is in a trust, could I simply add the person to the trust and have myself written out of it?

I don't think you understand how a trust works, nor do I think you know how much it costs to set up a trust.

Contact JcCypress on here.

LALawman said:
On a related question as far as etiquette, is it fair to include rd $200 tax stamp price I paid into my asking price, or is that something written off?

You do not factor in the $200 tax stamp. You paid that as a tax to the government, not for parts of the item. The person purchasing it will have to pay a $200 tax just as you originally did.

Fat Andy · Nov 15, 2016

I do have a trust. In fact it was JCypress who helped me make it. I understand it I simply wasn't aware on the matter of transferring it. Interstate Arms is a little out of my way but there's others in my area who deal Title II. Just wanted to see if I had other options than a Form 4 transfer.

Thanks

DAVE_M · Nov 15, 2016

LALawman said:
I do have a trust. In fact it was JCypress who helped me make it. I understand it I simply wasn't aware on the matter of transferring it.

Then I don't understand why you would want to "transfer your trust" to someone, so forgive me if I thought you had no clue how a trust worked.

LALawman said:
Interstate Arms is a little out of my way but there's others in my area who deal Title II. Just wanted to see if I had other options than a Form 4 transfer.

IG is worth the drive, especially if you're dealing with NFA items. I'm unaware of anyone near Mandeville that deals with NFA, but I know of a guy (a member here) who is in Covington.

I've never had to transfer anything in a private sale, but I'm 99.9% sure you are stuck with doing a Form 4.

JoeLiberty · Nov 15, 2016

If it were me, I'd reconfigure it to remove it from the purvue of the NFA, then sell it as you would any other gun. You can then notify the ATF that it's no longer an NFA item and be done with it. Otherwise you have to take the buyers money and hold it and the rifle until his stamp comes back. And if he gets denied you may have to pay him back yada yada yada. The whole thing sounds like a headache. Wait times for stamps are insane right now theres alot that could happen while u wait. Or you could have someone like interstate broker the sale but I imagine thats not a cheap service.

noob · Nov 15, 2016

Too much of a hassle, you can sell him the upper and have him form 1 any one of his lowers. That would be the quickest route. And If you want to sell your lower, you can call the ATF and remove your lower from the registry. Then you can sell it to anyone you want as a standard lower (mind you, you may want to cross off your engraving). It will no longer be a NFA item. This would be the easiest route. When I form 1 an item, I think of it as a life long commitment. I will buy/sell off uppers and parts, but the lowers will be mine forever. You never know when you want to reconfigure your rifle.

shrxfn · Nov 15, 2016

Ditto I just SBR'd 2 lowers and with that in mind I am getting rid of 2 regular lowers as I don't need them anymore. The SBR lowers can be configured anyway you want they do not have to be SBR but have the ability to be if you want to. One of the lowers will host my 6.8mm hunting rifle which has a 16" barrel but I know in my mind if I want to go 12.5" with it I can do it legally on that lower now.

Now if you are just tired of dealing with the restrictions on SBR guns then I can see getting rid of it but other than that sell a regular lower and keep the SBRs they are more flexible in build options.

whbonney26 · Nov 15, 2016

noob said:
Too much of a hassle, you can sell him the upper and have him form 1 any one of his lowers. That would be the quickest route. And If you want to sell your lower, you can call the ATF and remove your lower from the registry. Then you can sell it to anyone you want as a standard lower (mind you, you may want to cross off your engraving). It will no longer be a NFA item. This would be the easiest route. When I form 1 an item, I think of it as a life long commitment. I will buy/sell off uppers and parts, but the lowers will be mine forever. You never know when you want to reconfigure your rifle.

Maybe it's not an AR style rifle and he can't sell just the upper.
Just a thought.

noob · Nov 15, 2016

whbonney26 said:
Maybe it's not an AR style rifle and he can't sell just the upper.
Just a thought.

You're right, I didn't think of that. Or in the instance like my sig 556 SBR, where the upper is the actual serialized part, not the lower.

dougstump · Nov 16, 2016

Here's a possibility, don't know how legal or practical it would be, just a possibility. After all the sale negotiations are finished, add the buyer to your trust. He hands over the cash and you hand him the SBR. Get a bill of sale. This gets you the money & he gets the SBR. He does a form 4 (individual or trust) to transfer it from your trust to him. After his form 4 is approved, 12 to 18 months from now, remove him from your trust. Put some verbage in the bill of sale that the sale is final, if the transfer to him is denied you will not refund the purchase price. Might be a good idea to make sure he ain't got any skeletons hiding in the closet that might cause problems with the transfer. Just a thought.

topgunz1 · Nov 16, 2016

I'd sell him the upper and have him build his own pistol lower and send off his own Forms to SBR it. If he wants the furniture or whatever on your lower swap it out for GI parts so you keep your assembled NFA item in case you decide to make another full gun in the future. An assembled lower isn't worth that much anyway compared to the upper, optics, etc

G_S · Nov 16, 2016

Just put it on consignment at your local NFA, gun shop and let them deal with all of it.

Selling / transferring NFA items in state, to a buyer is different than selling them out of state, to my knowledge.
(I could be wrong on this)

If you have a specific buy in mind, I agree with the post above me topgunz1

If it is a AR, on say a Anderson, or PSA, or another of cheaper, lowers.
It might be easier to just take all the parts off, and cut up the lower.
And have it take off the NFA registry.

mickey · Nov 16, 2016

I just purchased an sbs that was on a form 4 here in Louisiana from an individual. It was nothing to it.
You can form 4 it straight to the other party. They would pay the tax stamp when the form 4 is submitted to the Atf for approval. I would fill out a bill of sale for both parties at this time when you are payed for the item. Once the form 4 is approved, it will be sent back to you (I would keep a copy of that as well). Once you get it in hand contact the new owner to pick it up. As for disposing it out of the trust, if it were me I would ask the person that wrote it.

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