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A firearm bill of sale is a document that outlines the details of a private sale of handguns, rifles, or shotguns, serving as proof of ownership transfer and offering legal protection for both buyer and seller. The video tutorial covers essential information about firearm bill of sale forms and where to obtain a free official template. It highlights the importance of understanding that firearm sale processes vary by state due to differing gun laws. The tutorial suggests following six best practices: researching state-specific laws, selling to a trustworthy person (ideally a friend or family member), conducting a background check (if required), negotiating sale terms, and creating a bill of sale to finalize the transaction.