Question regarding tax stamp for NFA items...

[ElPrez231]

Hey all, I am interested in purchasing a suppressor for both my AR-15 (Gemtech G5) as well as my Walther P99 (SWR-trident9). I understand the steps to take towards acquiring these items however, I am a little confused about the $200 tax stamp. Once the stamp is acquired, does that mean you are free to purchase more NFA items (say, a second suppressor) without having to pay another $200? Or is it a $200 fee PER NFA item? (i.e. $200 + tax stamp for my Gemtech G5, and then another $200 + another tax stamp for the SWR-trident9?) Any help is appreciated, thanks!

 

[jlg]

$200 per item. If you sell the suppressor, the person you sold it to must also buy a $200 stamp.

I suggest setting up a trust and letting the trust own your suppressors. Put your family members in the trust with you, that way when you die they won't have to pay $200 to keep every NFA item you owned.

 

[TDR911]

That is correct.
I wish I had set up a trust fund when I started collecting. Now I am going to have both personal and a new trust fund for future items. I may eventualy pay the stamps again for the ones I bought earlier and put them in the trust.

 

[freakshow10mm]

You do know there is a tax free inheritance transfer available, right?

Anyways, any time there is a transfer between one or two non SOTs, $200 tax is due. If you do a private party direct with a fellow state resident on a Form 4, it's $200. For out of state transfers, it's $400 in taxes- $200 from the owner to the SOT dealer, then tax free from SOT to SOT, finally $200 from SOT to the buyer.

 

[jlg]

I had not heard of the tax free inheritance.

There are several other positives of doing it through a trust as well.
- don't need approval from your local Sherriff
- seem to go faster. My first NFA was done under my name and took about 4 months. The next 4 (all done in the same year) were under my trust and took less than 3 months. May be just coincidence though.
- Legally no one else can "borrow" your NFA items. However, if they are a member of the trust they can use them without you being there. Since the trust owns them and they belong to the trust.

 

[freakshow10mm]

Transfers on a Form 5 tax free transfer, check the box in the upper right marked "lawful heir". See Titleii.com for the form.