AR15.Com Archives
 Building an AR and FET
notso  [Team Member]
12/22/2011 4:00:24 PM
If I make a rifle, and create a cost with all components, labor, overhead, etc, and sell it, I owe the FET on that (if I manufacture more than 50).

If I add a magazine, sling and case to the sale (to a retailer for them to resell), do the costs of those items add to the FET taxable cost? Or is it only for the rifle itself?

Kinda a splitting hairs situation, I know, but I was just trying to figure out if the tax is on the item manufactured or on the "unit" or "package" sold.
Circuits  [Team Member]
12/22/2011 5:08:48 PM
FET due on the retail sale price of the FFL line item.

If you bundle the magazine, case, etc, for one price, it's the price of the package.

e.g -
AR-15 rifle $700
30rd magazine $15
sling $10
hardcase $25
total $750 FET due on $700

AR-15 rifle $750
(includes 30rd magazine - $0, sling - $0, hardcase - $0)
total $750, FET due on $750

same thing from a wholesale perspective - depends if you make the extras separate line items in your invoices to the dealer.
Guido1  [Dealer]
12/22/2011 6:12:23 PM
Bill out ANY accessories as a seperate line item and you can save a bundle!
jrzy  [Team Member]
12/24/2011 1:44:32 AM

Originally Posted By notso:
If I make a rifle, and create a cost with all components, labor, overhead, etc, and sell it, I owe the FET on that (if I manufacture more than 50).

If I add a magazine, sling and case to the sale (to a retailer for them to resell), do the costs of those items add to the FET taxable cost? Or is it only for the rifle itself?

Kinda a splitting hairs situation, I know, but I was just trying to figure out if the tax is on the item manufactured or on the "unit" or "package" sold.
it's 49
If you build over 49 you owe FET on all of the weapons

notso  [Team Member]
12/24/2011 8:56:11 AM
Thanks folks. That was the info I was looking for.