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but all class lll weapons are still subject to approval and still require the proper registration and taxes paid, paperwork, and licensing, before anyone can properly own it. Once all of this has been properly done, then anything that qualifies as a C&R under the ATF classification, may legally be transferred directly to that C&R holder without going through another dealer, after the proper transfer required for class lll weapons has been submitted and approved by the ATF along with the transfer fees being paid.
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Yes, but this part is the dead end when dealing with a machine gun. The Hughes Amendment to the Firearms Owners Protection Act made it illegal for individual ownership or transfer of any fully automatic weapon which was not registered as of May 19, 1986.
There are no more machine gun registrations, and have not been for 27 years.
The only real way for an individual to own a MG42 is to find a transferable one (meaning one that has been in the country and registered by the cutoff date) for sale and buy it.
There is one available here for $36,000
The other option is to get your 07 FFL and SOT and build one.