Talmud Bavli
Talmud Bavli

Commentary for Avodah Zarah 127:10

מ"ט משום דקסבר דמי עבודת כוכבים ביד עובד כוכבים מותרין ודלמא שאני התם דכיון דדעתיה לאיגיורי ודאי בטלה

What was his reason? Was it not because he held that the proceeds of an idol in the possession of an idolater are permitted! But perhaps it is different in that case, since his intention is to convert, they certainly annulled them.

Daf Shevui to Avodah Zarah

The Talmud rejects this case as proof. These idolaters were intending to convert and therefore we can assume that they annulled their idols before selling them. But in a normal case, where the idolater is not converting, perhaps the proceeds would still be prohibited.
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