Customers regularly want to buy firearms as gifts for spouses, children, parents, and friends. Understanding when a gift purchase is legal and when it becomes a straw purchase is essential knowledge for every FFL dealer.
The Legal Gift Purchase
A gift purchase is legal when the person buying the firearm is doing so with their own money as a genuine gift for the recipient, and the buyer is themselves legally eligible to purchase. The buyer is the actual transferee — they are acquiring the firearm for the purpose of giving it as a gift. ATF's own instructions for Form 4473 explicitly acknowledge this.
ATF's own instructions address this. The instructions for Form 4473 Question 1 explicitly state that a person buying a firearm as a bona fide gift for a third party may answer "yes" to the actual transferee/buyer question. Buying a gift for someone who is legally allowed to receive it is not a straw purchase.
When a Gift Becomes a Straw Purchase
A gift purchase becomes a straw purchase when the buyer is actually acquiring the firearm on behalf of a specific person who is directing the purchase — particularly if that person is prohibited or is circumventing the background check process. Red flags include: the intended recipient is present and selecting the specific firearm, the buyer asks which boxes to check, or the buyer makes statements suggesting the purchase is at the recipient's direction.
How to Handle the Scenario at the Counter
When a customer indicates they are buying a gift, complete the Form 4473 normally with the buyer as the transferee. The buyer answers all questions based on their own eligibility. The NICS check is on the buyer. What the buyer does with the firearm after the transfer — including giving it as a gift to an eligible recipient — is not a dealer compliance matter.
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