Estimated reading time: 7 minutes
Zero-dollar NFA transfers sound amazing until you hit the real costs. Before you turn that brace AR into an SBR, read the travel rules, trust traps, penalties, and long-term risks that most shooters ignore.
The Zero Dollar Hook And The Catch
Ever since the National Firearms Act of 1934, NFA items, including short-barreled rifles and silencers, have had a tax of $200. That much money 90 years ago was equivalent to almost $5,000 today. Imagine buying a $500 AR and then having to spend $5,000 on taxes. Ridiculous. This is all about to end, thanks to the big, beautiful bill passed earlier this year. Starting on January 1, 2026, you will no longer need to pay $200 to SBR your rifle. It will cost $0 but still requires registration. Great news, right? We can register SBRs, take our braces off, and live happily ever after. As Lee Corso would say, “Not so fast, my friend.”
There are a bunch of reasons not to trade your AR pistol for an SBR. Here are the top ones, in no particular order.
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Permanent Registration As An NFA Item
Once a serialized item is made into an NFA item, like an SBR, it is difficult to remove from the registry. The safest way to take a serial number off the NFA list is to destroy the firearm and make it unusable. The ATF-approved method is to take a torch and cut the receiver in three places with quarter-inch cuts. Band saw type cuts are not allowed. Many of you might know about the CMP program that allows citizens to buy military surplus weapons directly. Rifles and pistols from WWI, WWII, and Korea live in many homes thanks to this program. Unfortunately, the M14 will never be sold to Americans because it began life as a machine gun. ATF will not allow the CMP to make new receivers and use parts from the M14s to build new rifles. All the parts are now considered machine gun parts. The point is this. Once you make an SBR, it will be an SBR until you destroy it or sell it.
Out-of-State Travel And ATF Form 5320.20
If you want to travel out of state with your SBR, you have to get permission from the ATF. You have to fill out ATF Form 5320.20 for every SBR you want to travel with. Even if ATF approves it, you have to make sure the state you are traveling to allows SBRs. You have to do this for every trip for every SBR you are taking. Failure to do so could cost you up to 10 years in prison and $250,000 in penalties. Hopefully, it gets approved in time for your trip. Painful.
Loss Of Options And Configuration Lock
AR-15s are Legos for men, or the male version of Barbie dolls. There are infinite options to accessorize and modify weapons, especially AR-15s. Once you make an SBR, it has to remain in the configuration that you made it in, or you have to have the ability to return it immediately. This includes caliber and barrel length. With a pistol brace AR, this is a non-issue. Change uppers and calibers as you wish.
Loaning And Trust Hassles
This is a big one. Unless your SBR is on a trust and the person you want to loan to is on the trust, you cannot loan out the SBR. This applies to your kids, dad, brothers, and everyone. As the owner of the SBR, you have to be present for someone else to use it. You are risking federal penalties if you violate this and get caught.
Lost Or Stolen NFA Items
Many shooters have truck guns, and a pistol-braced weapon is a great option for the vehicles in our lives. Most stolen weapons are taken from vehicles. One of the worst feelings in the world is when a gun owner cannot find one of their guns. Multiply that feeling by 100 if it is an NFA item like an SBR. If it ends up lost or stolen, it is a different process than a standard firearm. When a firearm is lost or stolen, the owner typically notifies local law enforcement. For NFA items, there is an additional step of notifying the ATF. Once the ATF knows about it, you can expect a call, a visit, or both.
Potential Future Risk
This one is subjective, but many people believe that sometime in the future, owners of NFA items are setting themselves up for visits from the government. If laws change or administrations change, NFA owners would be an easy list to generate for confiscation. This is the worst case, but if you own NFA firearms, you are known to the Federal government.
Resale Is A Mess
Selling guns is not something many of us do, but if you decide to sell your SBR, it is not simple. If you live in a free state, you can meet someone in a grocery store parking lot and sell your regular guns for cash, no receipt needed. With an SBR, it gets complicated. If the buyer lives in your state, you can do the Form 4 directly to them. Once approved, you can arrange pickup. If you are selling out of state, you have to transfer it to your FFL or SOT dealer, then they transfer it to the out-of-state dealer, and finally, that dealer can transfer it to the buyer. Messy.
Vertical Foregrips On Braced Pistols
If you have a pistol-braced weapon, you know you cannot have a vertical foregrip. In my opinion, no big deal. They are a meh accessory. Definitely not worth making an SBR for.
Pistols Are Legal In All 50 States
Handguns and pistols are legal in all 50 states (with limitations), but SBRs are not. There are far fewer restrictions on pistols than on NFA items. It is up to you to know what is legal where you live.
Concealed weapons permits may cover you with a pistol, whereas a loaded SBR rifle might violate state laws and game and fish laws.
Guns Are Like Shoes
I have a saying I like to share when someone asks me why I need more than one gun. My answer is this. Guns are like shoes. You need a pair for every occasion. If you can, have both an SBR and a pistol-braced weapon. If I could only have one, I would choose the pistol brace. There is nothing a pistol-braced weapon cannot do that an SBR can do. The brace pistol will do it with far fewer legal restrictions and hoops. Whatever you do, make sure it is legal where you live.
Quick Rules And Risks
| Topic | Key Takeaway |
|---|---|
| NFA Tax History | $200 since 1934. Equivalent to almost $5,000 in 2025 dollars. |
| Travel With SBR | ATF Form 5320.20 required for each trip and each SBR. |
| Penalties | Failure to comply can risk up to 10 years in prison and $250,000. |
| Configuration | SBRs must remain in registered configuration or be returnable to it immediately. |
| Loaning | Pistols are legal in all 50 states. SBRs are not. |
| Lost Or Stolen | Notify local law enforcement and the ATF. |
| Future Risk | Owners of NFA items are known to the government. |
| Vertical Grip | Not allowed on braced pistols. Not worth the stamp just for a grip. |
| State Legality | Pistols legal in all 50 states. SBRs are not. |
Pros And Cons Of Keeping The Brace
- Pros: Fewer travel headaches, more configuration freedom, easier to loan standard pistols, simpler resale of non-NFA firearms, fewer state traps.
- Cons: No vertical foregrip on braced pistols, some shooters prefer true SBR ergonomics, NFA stamp may provide peace of mind for some owners.
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Aaron was born into a 2A friendly family and firearms have been a part of every stage of his life. He started competing at 11 yards old and still competes actively in the action shooting sports with 3 gun being his main passion. Aaron enjoys working on and building guns, teaching himself and learning from others whenever possible.
Aaron has worked in or been a part of the firearms industry for over 20 years, including being the Operations Director for an AR15 manufacturer for 10 years. Aaron is also active in his local shooting community as the President of his local gun range. He also runs a national level 3 gun match every year as well as monthly shooting events at the range.
Experience
Gunsmith that builds 2011s, ARs, Rifles and Shotguns
Competitive Shooter, 3 gun, 2 Gun, USPSA, IDPA, Long Range
Board member and Range President
Firearms Industry for 20 years
