Reference for Avodah Zarah 12:3
איבעיא להו נשא ונתן מאי ר' יוחנן אמר נשא ונתן אסור ר"ל אמר נשא ונתן מותר איתיביה רבי יוחנן לריש לקיש אידיהן של עובדי כוכבים נשא ונתן אסורין מאי לאו לפני אידיהן לא אידיהן דוקא
The question was asked: What if one did transact business? R. Yohanan says: [The proceeds of] the transaction are forbidden. Shimon b. Lakish says [the proceeds of] the transaction are permitted. Yohanan raised the following difficulty on Resh Lakish: As to the festivals of idolaters, if one transacts any business [the proceeds] are forbidden. Does this not refer to [the period] preceding the festivals? No, [it refers to] the festival exclusively.
Jerusalem Talmud Avodah Zarah
It was stated33Babli 6b. While trade is forbidden, the proceeds of an illegal trade are not.: If one transgressed and traded with him, it is permitted. Rebbi Jacob bar Aḥa, Rebbi Yose, in the name of Rebbi Joḥanan: Even on his holiday34Disputed by the Babli 6b, Tosephta 1:9.. It was stated so:35Quoted in Tosaphot 2a, s.v. אסור. When was this said? About a Gentile whom he does not know. But with a Gentile of his acquaintance it is permitted since he is flattering him. It was stated: If one enters a town and finds them celebrating, he celebrates with them because he only is flattering them.
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