Legalities with buying a gun with the intent to sell online?

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FIVETWOSEVEN

FIVETWOSEVEN

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I've seen a few guns in gunshops that could most likely be sold online for a higher price by a hundred or two. My question is would it be legal to buy a gun to sell online like on a website such as gunbroker to go through a FFL?
 
The point isn't that they'd be transferred through a FFL, but that you'd be doing it to turn a profit. And as we know, Uncle Sam doesn't like when you don't share profit.
 
As long as you handle the transfers on both ends through an FFL I don't see any issues of legality. Uncle Sam might take a dim view of someone doing a lot of FTF trades and transactions without being an FFL but as long as you transfer through an FFL on both ends of the deal I can't imagine anyone would have a problem.

As noted, any profits need to be accounted for at income tax time.
 
Nothing at all illegal about the OP scenario, until it gets to the point of "engaging in business".

http://www.law.cornell.edu/uscode/18/usc_sec_18_00000921----000-.html

(a) As used in this chapter—
(21) The term “engaged in the business” means—
(C) as applied to a dealer in firearms, as defined in section 921 (a)(11)(A), a person who devotes time, attention, and labor to dealing in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms, but such term shall not include a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms;

(22) The term “with the principal objective of livelihood and profit” means that the intent underlying the sale or disposition of firearms is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents, such as improving or liquidating a personal firearms collection
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gearhead said:
As long as you handle the transfers on both ends through an FFL I don't see any issues of legality. Uncle Sam might take a dim view of someone doing a lot of FTF trades and transactions without being an FFL but as long as you transfer through an FFL on both ends of the deal I can't imagine anyone would have a problem.
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The Gun Control Act mandated the licensing of individuals and companies engaged in the business of selling firearms.
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Please note that it doesn't say bupkus about "selling to / transferring through FFLs".

"Engaged in the business of" = making profit
 
nalioth said:
"Engaged in the business of" = making profit
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Respectfully, nalioth, I disagree, otherwise I would NEVER be able to sell any gun for more than I paid for it without being "engaged in the business of". Your statement is an incomplete definition, you left out a few key elements, to wit:

as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms
 
Quick Turnaround

He would probably never get caught. The purpose of the law as written is to prevent the sale of guns by non-licensed indiviiduals. NAVYLT:: If you bought a gun on Sunday sold it on Monday as a regular habit that would be what the FEDS are looking for. Note: If the difference in price is only $100.00 the cost of an FFL in the buying and resale would negate any profit. Doesn't sound like it is worth the trouble
 
Remo223 said:
The escape clause is the fact that privately selling a firearm is legal. Until the day they outlaw all private sales of firearms, the OP is not doing anything wrong.
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Once or twice, no.

Once it gets to be a regular occurrence, he'll need a license.
 
Remo223 said:
^ there's no limit to how many guns I can own nor is there any limit to how many guns I can sell privately.
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That is true.

When you start buying them low on Sunday and selling them high on Monday - as a regular occurrence - you are breaking the law.
 
but such term shall not include a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms;

(22) The term “with the principal objective of livelihood and profit” means that the intent underlying the sale or disposition of firearms is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents, such as improving or liquidating a personal firearms collection
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The relevant section has been copied. There is no law saying you can't sell your guns for profit, and there is also no law saying you can't buy a gun for the express reason of selling it. Who's to say you're not buying it in order to sell for a profit so you can "enhance your personal collection". I happen to have a hobby of buying, trading and selling firearms but because it's not for the purpose of a livelihood (or for paying bills or for anything other than my own enjoyment of the firearms) I'm within the law. Sometimes I sell them for a profit, and sometimes I take a loss.
 
Remo223 said:
^ there's no limit to how many guns I can own nor is there any limit to how many guns I can sell privately.
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Actually, there is. And that limit happens to be whatever the judge you are standing before decides that it is. Part of the equation would be exactly how much of your annual income is coming from your "hobby".

nalioth said:
The point is there is no "escape clause" for buying and selling to / transferring through FFL holders.
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Yes, you are absolutely correct.
 
While this started as a question able buying and selling guns...and there are certainly rules that come into play because of the items in question...the basic legal question is, when does selling items become a business and require a license (in this case an FFL)

If you engage in it enough so that it appears to be a business, it becomes illegal without a FFL ...transferring guns through a FFLs isn't a legal workaround
 
9mmepiphany said:
While this started as a question able buying and selling guns...and there are certainly rules that come into play because of the items in question...the basic legal question is, when does selling items become a business and require a license (in this case an FFL)

If you engage in it enough so that it appears to be a business, it becomes illegal without a FFL ...transferring guns through a FFLs isn't a legal workaround
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obtaining an FFL to facilitate a private collection is also not legal. Therefore, the OP has no option but to go ahead and sell as a private seller.
 
obtaining an FFL to facilitate a private collection is also not legal

Would you cite the section or code you are basing that statement on
__________________
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It actually depends on what type of FFL the individual gets.

An 03 is EXPRESSLY for collecting

An 01 is A BUSINESS license, no more and no less, it allows an individual to legally operate a BUSINESS buying and selling firearms, and DOES prohibit holding the license for the intention of collecting.


Near as I can tell, there is absolutely NOTHING illegal about what the OP is suggesting. He BUYS the gun, he is the owner, he can then do with it what he pleases, if it sits in his safe or if he flips it on Gunbroker.

There is NO set number of times ( that I have ever seen ) that an individual can buy guns and then sell them, its comes down to "devoting time and attention with the intent of OPERATING a business by repeatably buying and selling"
 
Nobody is going to care as long as you're not selling tons of them. I think
the LGS might catch on to you and "cut out the middleman" before too long.
 
9mmepiphany said:
Would you cite the section or code you are basing that statement on
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No I will not because I am too lazy to look it up. You can do that yourself if you really think I am making things up. I do know your FFL license can be revoked if it is suspected you are only using it to improve your own personal collection. At least this was the case when a relative of mine had an FFL. He had to prove he sold a minimum number of firearms that were not from his own personal collection. He gave up trying to prove it and let his license go.
 
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