1. No. You are required to log, in your "bound book," any C&R firearms that you acquire or dispose of WHILE you are a licensee. That means if you have a weapon that is a C&R (on the C&R list, or over 50 years old) that you bought before you had a C&R FFL and you decide to sell it, give it away, etc, you need to enter it in your bound book and then log it out of the bound book showing its disposition. Likewise, any C&R weapons you acquire---whether or not you use your C&R FFL to purchase them---need to be logged into your bound book.
Guns that aren't C&Rs don't go in the book.
Antiques (pre-1899 manufacture) don't go in the book.
C&Rs that you acquired before you had a C&R FFL don't go in the book, unless and until you dispose of them while you have the C&R FFL.
2. BATFE can inspect your records and those C&R weapons that are logged in your bound book once per year. They need to notify you of the inspection and you have the right to have the inspection take place at the local BATFE office rather than your home. In general, it is never a good idea to allow a Federal agent into your home without a warrant. Nor is it a good idea to allow them access to guns that have nothing to do with your C&R FFL. Inspections are uncommon. If you're contacted by BATFE to schedule an inspection I would strongly recommend doing the inspection at their offices.
The "extra liability" involved with the C&R FFL is pretty minor. Log new C&R acquisitions into your bound book as soon as you take possession of them---there are .pdfs available for the bound book pages that have boxes for the necessary information---and log any dispositions out, recording the information about the disposition. When your FFL expires after 3 years you do not need to send the records in to the BATFE as retail dealer FFLs need to do. Just toss them in the shredder or otherwise dispose of them as you like. If you decide to keep your FFL I would suggest allowing it to lapse and then submitting a new application after a month or two. In that case your bound book starts over empty, with less chance of any paperwork errors that could cause you problems.




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