SOT question

[IndyGunworks]

I am a type 07 FFL how much to turn me into an SOT so i can play with full auto?

 

[curraheeguns]

$500 a year, but unless you are an active dealer I think they would come knocking if you had a bunch of posties.

Plus getting a demo letter for cheap full auto in Marion County is about as easy as finding a $20 full auto AK.

 

[IndyGunworks]

OH MY... well... maybe when i make really good money.... and can save up several thousand dollars worth of AK ammo... it MIGHT be worth one year... just to play.

if i drop the SOT, can i just change the parts back to semi?

 

[VUPDblue]

OH MY... well... maybe when i make really good money.... and can save up several thousand dollars worth of AK ammo... it MIGHT be worth one year... just to play.

if i drop the SOT, can i just change the parts back to semi?

It doesn't work that way...

 

[IndyGunworks]

So i would have to turn the gun over to the ATF if i dropped the SOT?

 

[curraheeguns]

If you only do it one year to play and show no to little "business" dealings you open yourself up for a tax evasion case. It has already been done.

As for switiching it back to semi-auto, that is a no no as far as the receiver is concerned. Once a machine gun always a machine gun. You could cut the receiver per ATF regs and use the other "parts kit" parts to build a semi-auto on a semi receiver.

HTH

 

[IndyGunworks]

hmmm... ok then, i just saw curaheeguns edited his post.... i didnt realize it would be so hard... would it matter if i live in cumberland and i almost garentee the local chief would sign off on it for me as i do some work for them.... i guess its not worth my time to try and dive into full auto for a year then.... thought being an FFL had its perks... in reality all it has is headaches.

ETA: i have no interest in dealing class 3 anything... just wanted to play with a machinegun for a year.... thanks for helping me out guys.. time to let this thread die and never think about this agian.... i actually have a headache thinking about all the hoops i would have to jump through on this one.

 

[curraheeguns]

Only way to learn is to ask questions. Hell, in Nov of 2008 I didn't even own an AR-15 or a class III item.

Obama made me a machinegun dealer!!!

 

[IndyGunworks]

Obama made me a machinegun dealer!!!

that needs to be posted ALL OVER the internet

 

[alfahornet]

If you only do it one year to play and show no to little "business" dealings you open yourself up for a tax evasion case. It has already been done.

Tax evasion case? I am not sure I am following the reasoning, legal issues here. If an FFl pays the SOT tax why is it tax evasion?

 

[IndyGunworks]

probably the same thing as obtaining your FFL for personal use.

 

[bigcraig]

probably the same thing as obtaining your FFL for personal use.

Exactly.

 

[SootKing]

probably the same thing as obtaining your FFL for personal use.

yea i wish i could do that...then i could buy guns directly off the internet and ship them right to my front door

 

[curraheeguns]

Tax evasion case? I am not sure I am following the reasoning, legal issues here. If an FFl pays the SOT tax why is it tax evasion?

Because dealers transfer Class III guns to the SOT tax free from other dealers and manufacturers. Thus, saving the $200 tax per weapon because they are for resale, not for personal use.

If you were doing this for soley for personal use and you buy say 5 weapons then you have evaded paying the government $1000 in taxes.

 

[CountryBoy19]

Because dealers transfer Class III guns to the SOT tax free from other dealers and manufacturers. Thus, saving the $200 tax per weapon because they are for resale, not for personal use.

If you were doing this for soley for personal use and you buy say 5 weapons then you have evaded paying the government $1000 in taxes.

This here^^^

 

[42769vette]

come on nick cost should not even be a issue. you really NEED this licence.

 

[alfahornet]

Because dealers transfer Class III guns to the SOT tax free from other dealers and manufacturers. Thus, saving the $200 tax per weapon because they are for resale, not for personal use.

If you were doing this for soley for personal use and you buy say 5 weapons then you have evaded paying the government $1000 in taxes.

Thanks got uou. I was thinking the other way about it .

 

[IndyGunworks]

Because dealers transfer Class III guns to the SOT tax free from other dealers and manufacturers. Thus, saving the $200 tax per weapon because they are for resale, not for personal use.

If you were doing this for soley for personal use and you buy say 5 weapons then you have evaded paying the government $1000 in taxes.

well you already gave them 500, so wouldnt it be 500 dollars that you owe?

 

[curraheeguns]

well you already gave them 500, so wouldnt it be 500 dollars that you owe?

Not sure what you mean. The $500 is a fee giving you permission to deal in NFA just like the $200 fee you paid to give you permission to deal with title I guns with a normal FFL.

The $200 is a tax on the transfer of a NFA item.

When you buy a NFA item as an individual you pay the $200 every time that weapon transfers. As a SOT you do not pay that tax. Therefore if you are transfering items to your SOT for personal use you are getting around paying that $200 tax per item.

 

[alfahornet]

well you already gave them 500, so wouldnt it be 500 dollars that you owe?

Well I think curaheeguns got to the bottom of the tax evasion. The FFL and I guess the Special Occupation Tax just are business licenses and not intented for personal use. Hence when you use them for your personal use ATF can come after you. Let's say you go 5 NFA items that year and you'd own the government $1000 but only paid $500 for the SOT, now you did evade taxes. Just my