Gun consignment works like this: you place your firearm with a licensed dealer, the dealer sells it on your behalf under federal rules, and you receive the sale price minus a commission that typically runs between 10% and 25%. Because the dealer holds a Federal Firearms License (FFL), they handle the paperwork, buyer identification, and background check that would otherwise fall on you in a private sale.1Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal Firearms Licenses The trade-off is that the firearm enters the dealer’s regulated inventory the moment you hand it over, which shapes everything that happens next.
What to Bring to the Shop
Bring a valid government-issued photo ID showing your name, address, date of birth, and photograph. A driver’s license or state ID satisfies the dealer’s requirement to record your identity in connection with the firearm. Know your firearm’s make, model, caliber, and serial number so intake paperwork can be completed on the spot.
Bring the gun unloaded and cleared. Most shops expect that as a safety baseline, and some will turn you away if you arrive with a loaded weapon. A clean firearm also displays better. Carbon buildup, surface rust, and grimy grips suggest neglect, and buyers walking a display case move on quickly. A basic cleaning before your visit can affect what the gun sells for and may spare you a shop cleaning fee that eats into your proceeds.
Some dealers post consignment intake forms online. Filling one out in advance speeds up the visit and gives you time to note cosmetic blemishes or mechanical quirks honestly. Dealers who discover undisclosed problems after intake tend to lose interest in pushing the sale.
What the Dealer Does With Your Firearm
Once you agree to terms, the dealer takes possession and logs the firearm into their acquisition and disposition record, commonly called the bound book. Federal regulations require that entry no later than the close of the next business day after receipt, and it must capture the date, your name and address, the manufacturer, model, serial number, type, and caliber or gauge.2eCFR. 27 CFR 478.125 – Record of Receipt and Disposition
Expect the dealer to compare the serial number stamped on the firearm against your paperwork carefully. Mismatches create compliance headaches, so they will be meticulous. After verification you sign the consignment agreement, the dealer countersigns, and you leave with a copy. That agreement is your proof that you placed the firearm with a licensed dealer rather than transferring it informally. Keep it.
From this point the firearm is part of the dealer’s regulated inventory. They are responsible for secure storage and must be able to produce it for ATF inspection. Your physical possession has ended, but your ownership has not. You still own the gun until it sells.
What It Costs You
The consignment agreement sets two numbers that matter: the listing price buyers see on the tag, and the net price you take home. The gap is where the dealer makes money. Most shops charge a commission between 10% and 25% of the final sale price. A few prefer flat fees, which tend to fall in the $50 to $150 range depending on the firearm’s value and the shelf space it occupies.
Several less obvious costs can chip away at your proceeds:
- Storage fees if the firearm hasn’t sold after a set period, often 60 or 90 days. These vary widely and can run up to $50 per month.
- Cleaning or prep charges if the firearm arrives dirty or needs minor work to be display-ready.
- Return processing fees if you take the gun back unsold, because the return itself requires federal transfer paperwork.
Read the full agreement before you sign. A sound consignment contract spells out the listing price, commission rate, additional fees, the consignment period, and what happens if the gun doesn’t sell. If a dealer won’t put terms in writing or gets vague about deductions, find another shop.
How the Listing Price Gets Set
Most dealers reference industry pricing guides and recent comparable sales. Condition drives value more than almost anything else. Original finish, functioning mechanics, matching serial numbers on older guns, and the presence of original boxes or documentation all push the price up. Aftermarket modifications cut both ways. A quality optic might add value, but amateur stippling or a cerakote job in an unusual color can hurt the price. Trust the dealer’s read on what local buyers will pay. Overpricing a consignment gun means it sits in the case collecting dust and storage fees.
What Happens When a Buyer Shows Up
When a buyer decides to purchase your firearm, the dealer runs the transaction like any other retail sale. The buyer fills out ATF Form 4473, the federal firearms transaction record, certifying they are legally eligible to purchase a firearm.3ATF eRegulations. 27 CFR 478.124 – Firearms Transaction Record The dealer verifies the buyer’s identity using a valid government-issued photo ID showing name, photograph, and date of birth.4Bureau of Alcohol, Tobacco, Firearms and Explosives. Identification of Transferee Requirements
The dealer then contacts the National Instant Criminal Background Check System (NICS), run by the FBI, electronically or by phone. NICS returns one of three responses: proceed, denied, or delayed.5Federal Bureau of Investigation. Firearms Checks (NICS) A proceed closes the sale immediately. A delayed response means NICS needs more time. If NICS does not respond within three business days, the dealer may legally complete the transfer, though many shops wait longer as a matter of policy.
In roughly a dozen states, the buyer also faces a mandatory waiting period before taking possession, even after the background check clears. These cooling-off periods range from 72 hours to as long as 30 days depending on the state and the type of firearm. The dealer cannot release the gun until both the background check and any applicable waiting period are satisfied. You do not need to be involved in any of this. The dealer handles the entire buyer-facing side.
When You Get Paid
After the sale closes and the buyer takes possession, the dealer calculates your net by subtracting the agreed commission and any outstanding fees. Most shops issue payment within 14 to 21 days, either by check mailed to you or available for in-store pickup. Some pay faster, some take longer. Your agreement should specify the timeline, so check it before you start wondering where your money is.
Taxes on What You Netted
A firearm you owned for personal use is a capital asset under federal tax law. If you sell it for more than you originally paid, the profit is a taxable capital gain.6Internal Revenue Service. Topic No. 409, Capital Gains and Losses If you sell it for less than you paid, which is common for used firearms, the loss is not deductible, because the IRS does not allow deductions for losses on personal-use property. Either way, keep records of what you originally paid and what you netted.
You will almost certainly not receive a Form 1099-K for a single consignment sale. For 2026, those forms are only required when payments exceed $20,000 and involve more than 200 transactions in a year.7Internal Revenue Service. IRS Issues FAQs on Form 1099-K Threshold Under the One, Big, Beautiful Bill Your obligation to report income exists regardless of whether a form arrives.
Getting the Gun Back If It Doesn’t Sell
If your firearm doesn’t sell and you want it back, you cannot just walk in and take it off the shelf. Because the gun entered the dealer’s regulated inventory when you consigned it, returning it to you counts as a disposition to a non-licensee. The dealer must complete an ATF Form 4473 for the return, which means you fill out the same background check paperwork a buyer would.8Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal Firearms Licensee Quick Reference and Best Practices Guide The dealer also logs the disposition in their bound book.2eCFR. 27 CFR 478.125 – Record of Receipt and Disposition
This catches people off guard. You are getting your own gun back, yet you are filling out a 4473 and going through a background check as if you were buying it new. ATF guidance explicitly requires this for consignment returns, unlike repaired firearms, which are exempt. Many shops charge a return processing fee to cover the administrative burden, so factor that in before consigning a firearm you are not fully committed to selling.
NFA Items Follow a Different Process
Suppressors, short-barreled rifles, short-barreled shotguns, and other items regulated under the National Firearms Act are not standard consignments. The dealer accepting an NFA item must hold not only an FFL but also have paid the Special Occupational Tax (SOT) authorizing them to deal in NFA firearms. Not every gun shop has SOT status, so confirm before showing up with a suppressor.
Transferring an NFA item from you to an SOT dealer for consignment requires filing ATF Form 4, and ATF must approve the transfer before the item physically changes hands.9Bureau of Alcohol, Tobacco, Firearms and Explosives. NFA Handbook The item must already be registered to you in the National Firearms Registration and Transfer Record. Form 4 transfers historically carried a $200 tax, but the One, Big, Beautiful Bill Act eliminated that tax for suppressors, short-barreled rifles, short-barreled shotguns, and similar items effective in 2026. The approval process itself still applies and can take weeks or months. When the item eventually sells, the dealer transfers it to the buyer through the same ATF approval process, which is why some SOT dealers charge higher commissions on NFA consignments.
Who Cannot Consign at All
Federal law prohibits certain categories of people from possessing firearms, and you cannot consign what you cannot legally possess. Prohibited categories include people convicted of a crime punishable by more than one year in prison, people under indictment for such a crime, unlawful users of controlled substances, people involuntarily committed to a mental institution, individuals subject to certain domestic restraining orders, and people convicted of misdemeanor domestic violence, among others.10Office of the Law Revision Counsel. 18 USC 922 – Unlawful Acts
If you fall into a prohibited category and still have firearms, consignment is not the path. Work with a lawyer to arrange a lawful disposition. A dealer who knowingly accepts a firearm from a prohibited person faces federal liability of their own, so a reputable shop will turn you away if something does not check out during intake. Walking into a gun shop with a firearm you are not legally allowed to have compounds the underlying possession violation with a new one.