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You know what I never checked the federal level. At the time I was doing this I figured if the state said it was legal in a certain case then the feds didn't have a problem either. I since realized how wrong I was about that logic, although it still makes more sense to me than the reality.

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If it is illegal at the federal level, I would think it wouldn't be an enforcement priority if it was allowed by the state. On the other hand, it's probably part of the tax code and that does tend to be a powerful enforcement motivator.

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