Did I just discover the tax exempt form 1 trap? Is this some sneaky BS?

[GeorgiaShooter]

I'm going to do my best to explain what just hit me like a ton of bricks. I hope I'm missing something but hoping I didn't just fall into a trap of sorts.

1. I locally buy a pistol brace firearm that is 100% legal. Why would I ever add this to a trust, register it or any other nonsense? It's a pistol and completely above board.

2. In other news, I also purchased a couple of Silencer Shop cans on a Single Shot Unlimited trust. I even read the FAQs as a dumb customer that say I can add form1 SBR and form 4s to the trust in the future. I believe we used their portal and my ATF pin and login to add them. That's my basic understanding.

3. Now I purchase the 50$ application of a tax exempt form1 on Silencer Shop. Basically registering a pistol to become an SBR. Then I send a message to their support asking how I will eventually add this to my trust. They reply you CANNOT per the rule drop.

I then read the rule more closely based on their support response and it seems that if your braced gun did not belong to your trust prior to the rule drop in January you cannot add it. You can only stamp it as an individual. Which sounds to me like one day when my kids on the trust inherit my guns, these would require the application and purchase of this tax stamp. Or there is some other big mess I have jumped into where the solutions cost money or worse. How would anyone know to have a pistol on a trust prior to the rule drop when they had no idea what would be in the rule. Or even know the rule existed.

Maybe I'm just being a dumbass here. Sometimes you know you just got screwed but can't quite put your finger on it.

 

[rumrunner55]

no there is whats called a form 5 which is a free transfer on death from your estate to the recipient no tax paid

 

[GeorgiaShooter]

no there is whats called a form 5 which is a free transfer on death from your estate to the recipient no tax paid

Ah okay well maybe that's what I need to research now, thanks. But does this mean I'm the only one that can ever take off to the range with these items?

P.S. So there is no way these tax free form 1 guns can be on a trust? So that trustees can manage them? That would suck.

 

[Lazarus]

Yeah I got an email from silencershop too and had some questions. From what I understand that Form 1 isnt really an SBR. Its more like a registeration where you register that lower to accept a brace. You still cant put a stock on it and since you dont pay the $200 tax you dont get a stamp.

 

[rumrunner55]

Ah okay well maybe that's what I need to research now, thanks. But does this mean I'm the only one that can ever take off to the range with these items?

P.S. So there is no way these tax free form 1 guns can be on a trust? So that trustees can manage them? That would suck.

Yep only one allowed to possess it aka cant give it to someone else to take home the only legal way is to have:
-already added your guns to your trust
-commit a felony and backdate your trust with guns
-or pay 200$ and register with a form 1/form4 transfer from you (individual) to you (trustee)
-or die and transfer it on form 5 to your trust as the inheritance lolol (this is how i plan to leave instructions for my kids/wife to wrap it all back into the same fold)

 

[rumrunner55]

Yeah I got an email from silencershop too and had some questions. From what I understand that Form 1 isnt really an SBR. Its more like a registeration where you register that lower to accept a brace. You still cant put a stock on it and since you dont pay the $200 tax you dont get a stamp.

nah man SBR = SBR as long as OAL doesnt change no reporting necessary stock away

 

[GeorgiaShooter]

Yep only one allowed to possess it aka cant give it to someone else to take home the only legal way is to have:
-already added your guns to your trust
-commit a felony and backdate your trust with guns
-or pay 200$ and register with a form 1/form4 transfer from you (individual) to you (trustee)
-or die and transfer it on form 5 to your trust as the inheritance lolol (this is how i plan to leave instructions for my kids/wife to wrap it all back into the same fold)

So does this mean that if I bought a pistol in 2021 then applied for form1 tax stamp, paid 200 dollars, it could be on my Single Shot Unlimited trust? But now with this new rule and free stamp it cannot? Was this an intentional ATF stunt to back door register and restrict? I still feel like I'm being dry humped.

 

[Lazarus]

nah man SBR = SBR as long as OAL doesnt change no reporting necessary stock away

I do not believe this to be the case. Fron the ATF Eform website:

"Pursuant to ATF Final Rule 2021R-08F, the Attorney General has authorized certain persons tax-exempt registration of firearms they own or possess at the publication of the rule that are: 1) equipped with a stabilizing brace; 2) meet the definition of "rifle" under federal law; and 3) have a barrel or barrels less than sixteen (16) inches in length."

#1 says its equipped with a stabilizing brace, meaning once that brace is no longer equipped and a stock is put on that weapon no longer qualifies. Without a $200 tax paid your gun isn't an SBR. This just registers the gun as a braced weapon.

 

[Lazarus]

So does this mean that if I bought a pistol in 2021 then applied for form1 tax stamp, paid 200 dollars, it could be on my Single Shot Unlimited trust? But now with this new rule and free stamp it cannot? Was this an intentional ATF stunt to back door register and restrict? I still feel like I'm being dry humped.

If you brought a pistol and SBR'd it with a Form 1 paying your tax stamp you don't have to do anything with this. This is only for pistols that people have been using with braces to avoid paying that tax stamp

 

[rumrunner55]

I do not believe this to be the case. Fron the ATF Eform website:

"Pursuant to ATF Final Rule 2021R-08F, the Attorney General has authorized certain persons tax-exempt registration of firearms they own or possess at the publication of the rule that are: 1) equipped with a stabilizing brace; 2) meet the definition of "rifle" under federal law; and 3) have a barrel or barrels less than sixteen (16) inches in length."

#1 says its equipped with a stabilizing brace, meaning once that brace is no longer equipped and a stock is put on that weapon no longer qualifies. Without a $200 tax paid your gun isn't an SBR. This just registers the gun as a braced weapon.

The exemption was just to blanket the accessory and meets the legal definition of SBR aka a stock or device attached to a weapon with a barrel under 16” they even refer to it as being an SBR and there is no separate sub category of them. But to be honest based on ATFs track record wouldn’t suprise me 10yrs later they flip flop again