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How Do I Sell Something Purchased With My C&R License

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    How Do I Sell Something Purchased With My C&R License

    Does any one know the rules about selling an item purchased with my C&R license. I understand I cannot run a business of buying and selling guns, with this grade of FFL license.

    But what do you do when you want to up grade, an item and no longer need the original purchase.

    Thank You.

    #2
    According to the CCR paperwork, you are permitted to sell items as long as it's not a regular/business situation. So, an occasional sale or two would be fine.
    Erich
    Festina lente!

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      #3
      I am not sure where you live, But state law in California even with a C&R has to be drossed. unless its sold to another C&R or full FFL.

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        #4
        Hi,

        I cannot address issues with individual states.

        On the federal level, lets assume you purchased a C&R qualified firearm using your license and booked it in your bound book. You may dispose of your collection (one piece or all). When you dispose of an item, you must show the disposition of the item in your bound book.

        What you cannot do is buy and sell so often that it appears that you are dealing (making money) buying and selling firearms. The interpretation of this "dealing" seems to be a bit arbitrary. I have had collectors who, when speaking with an ATF agent, were told that if you acquire and dispose of an item in less than a year you are dealing. I find that a bit extreme since most collectors are looking to upgrade their collections and replacing a piece in their collections in less than a year is probably common. I can't see how that can be considered dealing, but that is what I have been told by several collectors.

        The above is my understanding of the issue. Since laws are written to be interpreted, it will depend on the ATF and a judge as to how the law is applied.

        Regards, Leon

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          #5
          Very good question here.

          I agree with Leon here.
          There is no documented number or amount that says you can sell this many guns a year with your C&R and not be considered a dealer.

          I too have spoken to an ATF agent in Miliwaukee who stated that dealing goes by a percentage rather than a round number. For example; let's say you buy 20 guns this year with your C&R, and you ended up selling 10 of those. That's 50%, and would probably be considered as dealing, thus your C&R could be revoked.

          Remeber when you renew your C&R every 3 years you have to fill out paperwork. On that paperwork it specifically asks you how many guns you purchased over the past 3 years, and how many you sold in the past three years. As long as the percentage of buying vs. selling is low, then there won't be any problems.

          Now, as for your original question, "how do I sell something ....with my C&R."
          First off, read your books. When you got your C&R, the ATF should have sent you a bunch of books and paperwork. These will contain the state an federal laws. Know your state laws good. These are the ones that will get you in trouble.

          I won't get into all the laws, because that would take too long, and I'm sure your state differs from mine. I'm not saying you have to do this, nor am I saying it is required in all states,
          But generally you can follow these rules;

          1. If you are selling to someone outside of your state (the state you were licensed in), then you must get a signed copy of the buyers FFL or C&R.
          2. If you are selling to someone in your own state, then you can either get a copy of thier FFL, C&R, or divers license.
          3. If you are selling to someone out of state, who does not have an FFL or C&R, then that person needs to go to thier local gun dealer, and get a gun transfer done. In this scenario, the dealer will send you his FFL copy, you send the gun to the dealer, and the dealer transfers it to the buyer. (for a small fee of course!)

          Which ever scenario occurs, always be sure to keep good accurate records of all transactions!!!!!
          I can't over-ephasize this statement!


          Matt
          Last edited by Matt Weber; 11-16-2005, 05:03 PM.

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            #6
            FWIW, the requirement to notify BATF of your A&Ds upon renewal of your FFL is not required for C&R FFL holders.

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