Paying for an NFA machine gun

[essayons21]

Even though it is a personal loan, it is from a FDIC bank.

The relevant law is here http://www.fdic.gov/regulations/laws/rules/8000-1250.html

1343 and 1344

If the bank asks what the loan is for, and then gives a loan based on a false statement, that is fraud.

Not saying I necessarily agree with the law, but that is what it is.

 

[AlexanderA]

I don't think either of those sections is relevant. For them to apply, the misrepresentation has to be both "fraudulent" and "material." Merely stating that you are planning to use the loan proceeds to go on vacation, rather than to buy a machine gun, is neither "fraudulent" nor "material." It basically has no bearing on whether you get the loan, only, perhaps, on satisfying some loan officer's idle curiousity. A bank that gives you a loan "to go on vacation" is really giving you an unsecured signature loan. The loan is not "based on" your statement that you are using it for a vacation; it is based on your general creditworthiness. You would be committing fraud if, for example, you lied about your job, your income, or your other outstanding debts (all "material" factors).

 

[hso]

I don't think you'll get a return on the investment these days if you're paying interest on the money to buy the gun. Real value climbed impressively for many years then the slope flattened a bit. http://machinegunpriceguide.com/html/subguns.html

Also, borrowing money to invest is only smart if you sell for a profit over total cost. Not selling isn't investing. Its like a junkie pawning their car to feed a habit.

Check the price guides and look at what is currently climbing before deciding to go into debt to purchase a toy, but don't call it an investment unless you have a schedule to sell for a profit.

 

[Ingsoc75]

Thank you for all your input gentlemen. Time to start saving up!

 

[AlexanderA]

Also, borrowing money to invest is only smart if you sell for a profit over total cost. Not selling isn't investing.

Here's another factor to consider if deciding to sell: the income tax (capital gains tax) consequences. If you have a huge paper run-up in the value of the gun (say, if you bought a machine gun some years ago and watched the value climb astronomically), you'll have a large capital gain tax if you sell. However, if you hold the gun until you die, your heirs will have a "stepped-up basis" to the fair market value at the time of your death, and so they will have no taxable gain if they sell shortly thereafter.

The IRS does audit this stuff.

 

[p2000sk]

As much as I would like to buy an M16, at the currently inflated prices, that much money could buy me a pretty sweet second hand backhoe.
I would probably get a lot more work done with a backhoe than with a registered machinegun.

 

[Ian]

My secondhand backhoe cost a lot less than my machine gun...

 

[GoingQuiet]

ingsoc. fullautos as a whole will only gain value. there are no more being made that are full transferable. limited supply with growing demand.

Tell that to everyone who bought a gun in 2007.

 

[kimbershot]

what makes you think you could get a personal "signature" loan for $10-xxK. for crying out loud--people with stellar credit can't get loans to buy houses without a proctological exam. business can't get loans unless secured by their receivables or first born. grow up. :banghead:

 

[kimberkid]

The last time the stock market took a dive I pulled out 30K for a Colt M16 & HK sear pack and so even if the registry we're to open back up and the value dropped the colt would still have its collector value and the HK would still have some value ... unlike my GM stock

Not to mention I have them incase the zombies do rise, or the <deleted> does hit the fan or barring all else, I get to have fun with them until I decide to cash them out!

 

[MP-5 Hillbilly]

And the longer you wait the more it will cost

I borrowed 16.5 and 17.5 for two mint M16A2's (auto marked) less than 3 years ago. I am paying 3% and one is paid off completely. I have zero regrets borrowing money at low interest to buy something that appreciates in value. The bank is paying nothing for CD's.

In the current market an A1 will cost much more than what I paid for the A2's. I will never shoot them...I have posties for my shooting pleasure.

It's only money and you can't take it with you.

It gives me much more personal satisfaction pulling the A2's out of the safe and them "wowing" me every time I do vs. the satisfaction I get when my 401k statement gives me every 3 months.

 

[Bubbles]

You bring up a good point - pulling a stock certificate (if you even get issued one) out of the safe and playing with it just isn't as satisfying as doing the same with a f/a firearm.

 

[JustinJ]

I seem to recall seeing an ad at one time for some firm that would transfer retirement funds into full autos. I wouldn't advise it but i believe its an option.

 

[oldbear]

I personally don't take out debt to pay for things that are purely toys, but to each his own.
Yep, not only that you have a toy that isn't fun unless its chewing up and spitting out money.

Guy's thanks the voices of truth and reason came to the forefront. F.A.W's gotta be more costly than hot babes

 

[King_John_I]

Another NFA question....

Can a dealer sample go on a NFA gun trust?

 

[Sam1911]

A dealer sample can't be transferred to anyone who isn't an SOT2/3 or a government agency.

 

[King_John_I]

So want a "newer" model FA, ie Scar or something...

I like some older FA, dont get me wrong but want the newer toys for personal satisfaction currently.

 

[Sam1911]

So want a "newer" model FA, ie Scar or something...

I like some older FA, dont get me wrong but want the newer toys for personal satisfaction currently.

The only way you can possess/own any machine gun made after May 1986 is if you are one of several kinds of Federal Firearms License holding dealer or manufacturer, and you pay the Special Occupational Tax Class 2 or Class 3 to make or deal in such weapons.

The Hughes Amendment to the Firearms Owners Protection Act of 1986 closed the National Firearms Act registry to new machine gun entries, effectively making only older (registered) weapons lawful for "average" (not licensed dealer/manufacturer) citizens to own.

 

[Iramo94]

Did someone say something long the lines of the registry opening back up? That's gotta be the funniest thing I've heard in a while. No way that's happening. Ever. I'll glad eat my words and publicly apologize if it does.

I'll take that bet.
Call me optimistic, but with the huge increase in popularity of guns in general, and the new generation of machine gun loving voters, it just might happen.

Edit: added the word "increase" to an otherwise incoherent sentence.