That is correct. If a FFL/SOT gives up his license he can retain the transferable and Pre 86 dealer sample guns. When the ex-dealer opts to sell the Pre 86 guns it has to be transferred out using ATF Form 4 with the $200.00 transfer tax. And it can only be transferred to a current dealer.
As another option it could be transferred to a law enforcement agency tax free on Form 5.
As another option it could be transferred to a law enforcement agency tax free on Form 5.
Okay, I've got a question then;
If the classified that the OP is referring to is trying to sell it as a Pre-May dealer sample. and the classified says that it's owned by a "former C-3 dealer" then the item in question could only be transferred to an FFL/SOT, correct?