Is this kosher?

Machine guns, SBRs, SBSs, suppressors, destructive devices, AOW (any other weapon)
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N4KVE
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Is this kosher?

Post by N4KVE » Sat Aug 31, 2013 10:21 pm

So I was at the Miami gun show today, talking to someone who deals with many class 3 items, & he says it is becoming common practice for people to sell their trust with a class 3 weapon. This means no waiting period. The name of the trust contains the ser # of the gun, & is sold with the gun. The buyer then transfers the trust to themselves, & voila, no waiting period, as they purchased the trust with the gun. Has anybody heard of this practice? GARY

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870Mike
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Re: Is this kosher?

Post by 870Mike » Sun Sep 01, 2013 9:23 am

My guess would be no. I can see the ATF viewing it as tax evasion.
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BMW GUY
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Re: Is this kosher?

Post by BMW GUY » Sun Sep 01, 2013 10:48 am

If the item stays in the trust you are not violating anything. Tax is only charged when the item is transferred to another trust. Of course it's up to the interpretation from the ATF and we all know they are not always mainstream.

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Mr. Smith
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Re: Is this kosher?

Post by Mr. Smith » Tue Sep 03, 2013 1:35 pm

This is actually a very interesting question.

I’d be very interested in what some of the legal eagles like “Miami Attorney” had to say about this. Heck I’d even be interested in what Moe or Sweep thought.

Smith
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Re: Is this kosher?

Post by Bob » Mon Sep 09, 2013 1:51 pm

While I have heard of this being done with corporations and LLCs, I have never hear of it involving a trust. Firstly, a trust is basically an estate planning document set up to handle the transfer of your trust assets. It is not set up to be a transferable business entity. So I would not even know where to start to try to do such a thing. Doesn't mean some yahoo hasn't tried to do it. But not really what a trust is set up for. Aside from a potential tax evasion charge.

Bob

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