View Full Version : form 3 or 4
May 17, 2008, 07:30 PM
I have a MAC M-10 listed for sale with GunsAmerica and I keep getting the question whether or not it is on form 3 or 4. What the devil are these good people asking me. I am sorry for being clueless so I am asking for help in becoming unclueless.
May 17, 2008, 07:34 PM
They are wanting to know because it affects how many transfer taxes are due. If a dealer has the firearm, then it would be on a form 3 which is a tax exempt transfer form used between dealers. If the buyer is in another state, the dealer would transfer it to another out of state dealer tax-free on a form 3. That way the buyer would only pay the tax from his dealer to him on a Form 4. If you have the gun on a Form 4 and want to sell it to an out of state buyer, then you would have to pay the tax to get it to your dealer and onto a Form 3, then the buyer would have to pay the tax again to get it from his dealer's form 3 and onto a form 4.
May 17, 2008, 07:55 PM
I understand you to say that if I want to sell someone my gun out of state, I would have to pay the tax (how much?) and then he would have to pay the tax again at his end? I have already paid for my stamp, or is it a charge above and beyond that? I know I would have to transfer my gun to a dealer cuz it's against NFA rules to sell it outright but I will have to pay another tax?
I'm sorry, I'm a little confused
May 18, 2008, 07:14 AM
I think what's getting you tripped up is what the tax represents. The $200 tax doesn't represent ownership, it represents the transfer of posession. To transfer the firearm, you pay the tax. If you sell to an out of state buyer, two taxes are due. You would have to transfer it to your dealer, here is one tax, then once the buyer's dealer gets it, he will have to transfer it to the buyer, here is the second tax. They are $200 each time. Now, if you sell to someone in your own state, you do not have to go through a dealer, and there is only one tax due since it is only one transfer, from you to the buyer.
May 18, 2008, 04:51 PM
Thanks for your help, folks. I appreciate it.
vBulletin® v3.8.7, Copyright ©2000-2013, vBulletin Solutions, Inc.