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A firearm bill of sale outlines the details of a sale between a private buyer and seller, documenting the transfer of ownership for handguns, rifles, or shotguns. It serves to protect both parties in case of legal issues. The video tutorial covers essential information about firearm bill of sale forms, including where to find an official template for free. It highlights that the process of selling a firearm varies by state due to differing gun laws. Despite these variations, six best practice steps are recommended: research state laws, consider selling to a trustworthy person, perform a background check as required, negotiate sale terms, and create a bill of sale.