Re: 1971 40hp - No Spark at plugs
Yes a couple of things
I only have the wiring back to 73 but the components look similar.
There are 3 wires going to the magneto, please confirm.
First, you have a fused wire in the diagram going from the ignition switch to the magneto, check it.
Second, there is a kill switch or shorting switch I think they call it going to the magneto, it is a grounding switch, disconnect it (2 wiring harnesses, one from each side of the switch) and test.
Third, the magneto has a wire going to ground, make sure it is clean and grounded.
And of course what I suggested to begin with , clean and adjust points if they need it.
Playing with shift levers to re engage switches has zero to do with spark, one would assume that being an electric start and you have verified you have no spark that the neutral safety system is working. All this does is provide ground to the other terminal of the solenoid. This is either a bad coil(s), dirty or bad points/condensers or something in the wiring/ignition swich.