I finally figured out Form 4. Can someone explain how Form 3's work? Specifically, when someone has a Class 3 item to sell and has a "Form 3 waiting" - what is it? And what are the benefits compared to item for sale without that listed?
Suppressors Form 3
- Thread starter chalwie
- Start date
Re: Form 3
A form 3 is when when a dealer/manufacturer needs to send/sell the title II item(s) to another dealer, it's their approval paperwork. There is no tax as that is already paid on a annual basis when the FFL renews, their SOT, manufacturers license.
A form 3 is when when a dealer/manufacturer needs to send/sell the title II item(s) to another dealer, it's their approval paperwork. There is no tax as that is already paid on a annual basis when the FFL renews, their SOT, manufacturers license.
Re: Form 3
yep, its just what is says on the top of the form 3, application for tax exempt transfer of firearm and registration to special occupational taxpayer (SOT), so basically its for a dealer (SOT) to dealer (SOT) transfer of a NFA/class III weapon, sbr, suppressor etc...
yep, its just what is says on the top of the form 3, application for tax exempt transfer of firearm and registration to special occupational taxpayer (SOT), so basically its for a dealer (SOT) to dealer (SOT) transfer of a NFA/class III weapon, sbr, suppressor etc...
Re: Form 3
It means that there is no additional 200 dollar tax stamp involved if it was being sold out of state or has to be transfered to another dealer. If a individual owns a suppressor, it is going to be on a form 4. Once a item is on a form 4, it will always be on a form 4 no matter who it transfers to. As a individual, you can sell a suppressor in state, face to face when the forms clear and no extra tax stamp involved. Just the 200 dollar stamp to the new owner.
That is the reason why you do not see too many suppressors go up for sale USED. The person owning it already lost 200 dollar in their own transfer. Then if they sell it out of state or have to transfer it to another dealer for transfer, there will have to be another 200 dollar transfer involved, then the dealer can transfer it to the person who bought it. At that point, the buyer can just buy a new one. You see machine guns transfered all the time, but not so much on a suppressor. Unless you are after something special, or isn't made anymore. It will probably be better and faster to go with a new suppressor.
It means that there is no additional 200 dollar tax stamp involved if it was being sold out of state or has to be transfered to another dealer. If a individual owns a suppressor, it is going to be on a form 4. Once a item is on a form 4, it will always be on a form 4 no matter who it transfers to. As a individual, you can sell a suppressor in state, face to face when the forms clear and no extra tax stamp involved. Just the 200 dollar stamp to the new owner.
That is the reason why you do not see too many suppressors go up for sale USED. The person owning it already lost 200 dollar in their own transfer. Then if they sell it out of state or have to transfer it to another dealer for transfer, there will have to be another 200 dollar transfer involved, then the dealer can transfer it to the person who bought it. At that point, the buyer can just buy a new one. You see machine guns transfered all the time, but not so much on a suppressor. Unless you are after something special, or isn't made anymore. It will probably be better and faster to go with a new suppressor.
Re: Form 3
Some people may try to play fast and loose with "it’s on a form 3” I would make sure that the seller has it in their possession & it’s not “on a form 3” waiting approval.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: chalwie</div><div class="ubbcode-body">Got it - thanks. I presume a seller who mentions that it's "on a Form 3", means no wait time because the Form 3 was processed and item is in store.
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Some people may try to play fast and loose with "it’s on a form 3” I would make sure that the seller has it in their possession & it’s not “on a form 3” waiting approval.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: chalwie</div><div class="ubbcode-body">Got it - thanks. I presume a seller who mentions that it's "on a Form 3", means no wait time because the Form 3 was processed and item is in store.
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Re: Form 3
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">It means that there is no additional 200 dollar tax stamp involved if it was being sold out of state or has to be transfered to another dealer. If a individual owns a suppressor, it is going to be on a form 4. Once a item is on a form 4, it will always be on a form 4 no matter who it transfers to. As a individual, you can sell a suppressor in state, face to face when the forms clear and no extra tax stamp involved. Just the 200 dollar stamp to the new owner.
That is the reason why you do not see too many suppressors go up for sale USED. The person owning it already lost 200 dollar in their own transfer. Then if they sell it out of state or have to transfer it to another dealer for transfer, there will have to be another 200 dollar transfer involved, then the dealer can transfer it to the person who bought it. At that point, the buyer can just buy a new one. You see machine guns transfered all the time, but not so much on a suppressor. Unless you are after something special, or isn't made anymore. It will probably be better and faster to go with a new suppressor.</div></div>
I think I understand. Bear with me, I'm slow after the college drinking. Individual seller has Form 4. He sells to Buyer within his state, his stamp goes to new owner without additional charges. He sells out of state, Seller needs to buy another stamp for the transfer to new state Class 3 FFL. The Buyer receives that "new" transfer stamp, without applying for one himself in that case? So the benefit is transparent to Buyer, more like Seller already went through the trouble to place it on the market?
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">It means that there is no additional 200 dollar tax stamp involved if it was being sold out of state or has to be transfered to another dealer. If a individual owns a suppressor, it is going to be on a form 4. Once a item is on a form 4, it will always be on a form 4 no matter who it transfers to. As a individual, you can sell a suppressor in state, face to face when the forms clear and no extra tax stamp involved. Just the 200 dollar stamp to the new owner.
That is the reason why you do not see too many suppressors go up for sale USED. The person owning it already lost 200 dollar in their own transfer. Then if they sell it out of state or have to transfer it to another dealer for transfer, there will have to be another 200 dollar transfer involved, then the dealer can transfer it to the person who bought it. At that point, the buyer can just buy a new one. You see machine guns transfered all the time, but not so much on a suppressor. Unless you are after something special, or isn't made anymore. It will probably be better and faster to go with a new suppressor.</div></div>
I think I understand. Bear with me, I'm slow after the college drinking. Individual seller has Form 4. He sells to Buyer within his state, his stamp goes to new owner without additional charges. He sells out of state, Seller needs to buy another stamp for the transfer to new state Class 3 FFL. The Buyer receives that "new" transfer stamp, without applying for one himself in that case? So the benefit is transparent to Buyer, more like Seller already went through the trouble to place it on the market?
Re: Form 3
In my situation, I see a Surefire FA338 that would work on my OBR 308. I suppose it'll save me 1) tax, 2) transfer stamp if individual has a "Form 3", and 3) new retail markup? Trying to figure out if it'll save me much by going this route, or if I should just go retail.
In my situation, I see a Surefire FA338 that would work on my OBR 308. I suppose it'll save me 1) tax, 2) transfer stamp if individual has a "Form 3", and 3) new retail markup? Trying to figure out if it'll save me much by going this route, or if I should just go retail.
Re: Form 3
NFA items are NOT "on Forms". They may be in the possession of an individual or a licensee, but they are not "on" any particular type of form. The Form used to transfer the item depends upon who is doing the transfer "the transferor" and who it's being transferred to "the transferee"
Form 3 is used to transfer an NFA firearm from one SOT to another SOT. This is a tax free process, since the transferor is an SOT as is the transferee.
Form 4 is used to transfer an NFA item to or from a non-SOT, be it an individual, a corporation, or a trust. The transfer tax is due payable from the TRANSFEROR. This is why a transfer FROM an individual owner TO an SOT is still tax paid, even though the dealer has paid the dealer tax fee.
>>>Individual seller has Form 4. He sells to Buyer within his state, his stamp goes to new owner without additional charges
Negative. Form 4 is ALWAYS tax paid, the stamp is NON-TRANSFERABLE, SINGLE USE
>>>Once a item is on a form 4, it will always be on a form 4 no matter who it transfers to.
Negative. Once it is in a dealers possession, it transfers to another dealer on a Form 3, tax free.
Normally the transferee is charged the tax amount or is made to provide the check to ATF. Since an individual cannot do a transfer to anyone out of their state other than a dealer, this is how a "double tax" takes place, once to the out of state dealer and then to the individual in that state that is the actual end purchaser.
Since the '86 ban on new MG's, when you buy a gun you are paying ALL the prior transfer taxes PLUS the appreciation value of the gun, which is why MG's are so goofy expensive.
This is also why used suppressors and the like are so low priced. Since you can just make a new one, why would you pay an extra $200? If it's not in your state, just get your dealer to get a new one.
NFA items are NOT "on Forms". They may be in the possession of an individual or a licensee, but they are not "on" any particular type of form. The Form used to transfer the item depends upon who is doing the transfer "the transferor" and who it's being transferred to "the transferee"
Form 3 is used to transfer an NFA firearm from one SOT to another SOT. This is a tax free process, since the transferor is an SOT as is the transferee.
Form 4 is used to transfer an NFA item to or from a non-SOT, be it an individual, a corporation, or a trust. The transfer tax is due payable from the TRANSFEROR. This is why a transfer FROM an individual owner TO an SOT is still tax paid, even though the dealer has paid the dealer tax fee.
>>>Individual seller has Form 4. He sells to Buyer within his state, his stamp goes to new owner without additional charges
Negative. Form 4 is ALWAYS tax paid, the stamp is NON-TRANSFERABLE, SINGLE USE
>>>Once a item is on a form 4, it will always be on a form 4 no matter who it transfers to.
Negative. Once it is in a dealers possession, it transfers to another dealer on a Form 3, tax free.
Normally the transferee is charged the tax amount or is made to provide the check to ATF. Since an individual cannot do a transfer to anyone out of their state other than a dealer, this is how a "double tax" takes place, once to the out of state dealer and then to the individual in that state that is the actual end purchaser.
Since the '86 ban on new MG's, when you buy a gun you are paying ALL the prior transfer taxes PLUS the appreciation value of the gun, which is why MG's are so goofy expensive.
This is also why used suppressors and the like are so low priced. Since you can just make a new one, why would you pay an extra $200? If it's not in your state, just get your dealer to get a new one.
