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A firearm bill of sale documents the sale details of handguns, rifles, or shotguns between private buyers and sellers, facilitating ownership transfer and protecting both parties legally. The video outlines essential information about these forms and where to obtain a free official template. It emphasizes that firearm sale processes vary by state due to differing gun laws. Regardless of state-specific requirements, six best practice steps are recommended: research local gun laws, consider selling to trusted individuals, perform a background check (as required or optional), negotiate sale terms, and create a bill of sale.