MG Transfer Question: Ind. to Ind. in State

[QwikKotaTx]

My dealer was not around when I called, excuse the newb questions. I am inquiring as to the process of purchasing a MG in state from an individual. Does the owner keep both the money and the MG until ATF approval or does it go to an FFL for temporary holding while the approval process is ongoing? I take it if the latter it would require an additional ATF transfer? If the owner kept the gun while approval is ongoing, I would not be able to shoot the weapon and would not want to give all of the payment. On the flip side it may be difficult getting the owner to only accept half of the payment while ATF approval is in motion, as when finalized the weapon's owner would be the buyer who only paid half. I think I just confused myself.

 

My other question is how is state tax handled? If the seller is not a company, is sales tax not required?

Edited March 6, 2018 by QwikKotaTx

[MontanaRenegade86]

Here goes...

1.) The seller/transferor will keep the gun while the Form 4 is in process.

2.) Payment terms will be decided upon by the seller and buyer - mainly the seller. Some sellers might be okay with a 50/50 payment schedule, others will not. For the sake of both parties, I'd have a simple contract drafted which spells out the terms of the deal and the ramifications for breaking them. 

3.) I live in Montana, which does not have a sales tax, so I am not sure how or if a sales tax would need to be collected. Your state department of revenue (or similar agency) should be able to answer that question.

Hope this helps. 

What machinegun are you looking to buy, if I may ask?

Edited March 7, 2018 by MontanaRenegade86
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[QwikKotaTx]

Thank you for the insight. I don't have the budget for my ideal weapons such as an MP5K or an M16 so a Mac it will have to be.

As far as sales tax goes, legally speaking I am supposed to declare anything I buy and pay the tax on my IRS return but we don't have state income tax here so I also don't know how that works. We do have sales tax though and can claim that as a deduction for example if buying a large purchase such as a car where it's taken out during purchase. Paying in, I would not be sure how to go about doing that.

[mike todd]

WASSAMATAYU??? pay tax on a private transaction ? from your name, I would gather you do some type of tax business or ?? you certainly live in the right state , as I do , if there is some insane law hiding somewhere my self and 99% of everyone else in this state are tax criminals !  I DONT KNOW ANYBODY, NEVER HEARD OF ANYBODY THAT WOULD TRY TO PAY A TAX ON A PRIVATE TRANSACTION IN THIS STATE. please try to keep it to yourself and your customers if that's the case.  now that that's out of the way (sigh) the amount paid up front is flexable and decided by the bargaining parties. in most cases its all up front. I often take everything but the registered part when I pay unless I know the party very well.  I learned the hard way with a 60 purchase about using a gun after its sold. it also prevents multiple sales which has happened also. heavy sigh MIKE

[QwikKotaTx]

It was a general question as I am new to MG transfer. I wanted to have my ducks in a row before I made an offer to a seller/dealer.