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A firearm bill of sale is a document that details the sale of a handgun, rifle, or shotgun between a private buyer and seller, ensuring the transfer of ownership and providing legal protection for both parties. The video tutorial covers essential information about firearm bill of sale forms and where to find free official templates. It outlines six best practice steps for selling a firearm, noting that state laws vary significantly. Key steps include researching state gun laws, considering selling to a trusted individual, performing a background check if required, and negotiating terms before creating a bill of sale.