Not a Dumb question, but certainly one out of ignorance

[CAR-AR-M16]

Registered NFA full auto is one of the best investments a person can make, better than gold, land and stocks. Because of supply and demand there are only so many transferable NFA weapons the civilian population can own.

The more people that discover this and invest, the more the prices are driven higher. The only way those prices will ever come down is if the NFA is repealed, and chances of that are slim to nothing.

A very good way of seeing this is just by looking at the chart CAR-AR-M16 posted, and looking at the machine gun guide, or better than that just follow the prices on http://www.sturmgewehr.com that is where most people that buy and sell NFA weapons go.

Yes, I know it is becoming a rich mans investment, but all things are relative. I remember many, many years ago purchasing several Registered Drop In Auto Sears (RDIAS) and later selling some of those RDIAS to purchase other NFA items. At the time they were only $350. each, look at how much they are worth today, but at that time $350. was a lot of money.

Another very good example, is the MAC 10 powder springs .45, it was first sold for $150. and you had a choice, purchase it in semi auto, or purchase it in full Auto which would cost $200. more for the NFA tax stamp, the price for the weapon was the same. Now they sell for around $5000. or higher.

Yes if you are in business and have a 07 FFL SOT, you can manufacture machine guns and several other other things too. They go on a form 1, but if you sell to another SOT that SOT will need a law demo letter before ATF will sign off on that purchase, there is no $200 tax stamp when selling between 07 FFL SOT's. That weapon can also be sold to LE departments or DoD still no tax stamp. Being a 07 FFL SOT is not an inexpensive thing, it will cost you money, and you have to show that you are in business to sell weapons no to just build your collection. If you like to invent and enjoy the challenge of converting semi auto to full auto, which I do, this might be they way to go for you. If you ever let the SOT part of the license go, you either have to sell or give away to the correct legal places or cut up or surrender those Full Auto weapons to ATF. That is why during this part of the year you will find many Post samples being sold, these are people giving up the SOT part of their license.

I hope this helps,

Mark

Mark, I think you meant manufacturers build NFA and register them with a Form 2, not a Form 1.

To reiterate what Mark posted above, an NFA Dealer (an 01/03 FFL/SOT) is not licensed to manufacture NFA weapons, only to transfer them. A properly licensed manufacturer like Mark (an 07/02 FFL/SOT) can make NFA weapons. An 07/02 manufacturer does not need a demo letter to make a post-86 MG. An 01/03 "Class 3" dealer needs a demo letter to receive a post-86 MG. A dealer cannot make a post-86 MG. In case you are wondering what the xx/xx numbers mean, the first number is the type of FFL and the second is the Class of SOT (Special Occupational Taxpayer).

Type 1 FFL is a Title 1 dealer or gunsmith
Type 2 FFL is a Title 1 dealer doing business as a pawnbroker
Type 3 FFL is a licensed collector of Curio & Relic (C&R) firearms
Type 6 FFL is a licensed maker of ammunition and reloading components other than Armor Piercing ammunition
Type 7 FFL is a Title 1 manufacturer of firearms, ammunition and ammunition components other than NFA, Destructive Devices and Armor Piercing ammunition
Type 8 FFL is an importer of Title 1 firearms and ammunition
Type 9 FFL is a dealer in Title 1 firearms including NFA destructive devices, but no other NFA
Type 10 FFL is a manufacturer of Title 1 firearms, ammunition and ammunition components, including NFA Destructive Devices but no other NFA, and not including Armor Piercing ammunition
Type 11 FFL is an importer of Title 1 firearms, ammunition and NFA Destructive Devices, but no other NFA

Class 1 SOT importer is an importer of NFA firearms
Class 2 SOT manufacturer is a manufacturer of NFA firearms
Class 3 SOT dealer is a dealer of NFA firearms

To get a Class 1 SOT status, you need an importer FFL, which includes Type 8, 11- and pay a yearly $1000 or $500 (reduced rate for small importers) tax due every July 1st.

To get a Class 2 SOT status, you need a manufacturer FFL, which includes Type 7, 10 - and pay a yearly $1000 or $500 (reduced rate for small manufacturers) tax due every July 1st.

To get a Class 3 SOT status, you need a dealer or manufacturer FFL which includes Type 1, 2, 7, 8, 9, 10 or 11 - and pay a yearly $500 tax due every July 1st.

 

[leemozoid]

Cost me about half an hour (to do my Quicken trust). That and $200 per NFA stamp is all it takes!

 

[Honeybee]

with my 07/02 I can build my own anytime I want, I just don't want one.
Made a few silencers but sold them after playing with them a while.

 

[Dwaggonner]

Ok, maybe this is a dumb question. But, I'll never know if I dont ask.... Can a person buy a parts kit, like the AK and PPS parts kits since they contain the full auto parts, and send those parts to a 07/02? to build them ? And then buy the gun / pay for the gunsmithing & then pay the $200 tax?

 

[CAR-AR-M16]

Ok, maybe this is a dumb question. But, I'll never know if I dont ask.... Can a person buy a parts kit, like the AK and PPS parts kits since they contain the full auto parts, and send those parts to a 07/02? to build them ? And then buy the gun / pay for the gunsmithing & then pay the $200 tax?

No. Any machine-gun made after May 19, 1986 can only be sold to the military or to a law enforcement agency.

If you could find an AK or PPS receiver that was made and registered as a machine-gun before May 86, an 07/02 could build that up with your parts kit. Those receivers would be very rare/expensive.