Real Estate Law
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Are there any negative tax or legal ramifications on us if we allow this?
No, she isn't a dependent of yours so where she declares her legal place of residence to be wouldn't affect you in any way at all. Whether she used your mailing address or some other address, it wouldn't cause any problems for you. Now whether it would be an issue for the IRS for taxation purposes, I can't say, but that is between her and the IRS.