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A firearm bill of sale records the details of a handgun, rifle, or shotgun sale between a private buyer and seller, facilitating the transfer of ownership and protecting both parties from potential legal issues. The video tutorial covers essential information about firearm bill of sale forms and how to obtain an official template for free. It emphasizes that gun laws vary across the 50 states, requiring specific steps to sell a firearm. Best practices include researching state laws, considering a trustworthy buyer, conducting a background check (which may be required or optional), negotiating sale terms, and creating a bill of sale.