I think you don't need to defend yourself. IMHO. I have explained this over and over to my son why I won't start a business sewing/quilting since I cannot get hired (too little jobs, too much competition here in our area). Very little profit and under appreciated. Many years ago I did a home daycare. I put my income on our taxes (I was not licensed) but I did not deduct one thing for supplies, food, electrical/heating-nothing. I knew 30 years ago when I 'babysat' that no way was I going to get involved in explaining anything to anyone why I felt I should/could be compensated for my space and money I spent on caring for other people's children (which I loved doing but there was very little money to raise a family). I made sure the amount I charged covered my expenses. Same thing this family member is doing. Even though he is entitled to deduct certain expenses. We suggested he get a highly reputable tax accountant to do his taxes. Trust is a huge thing. Sometimes you can't win an argument you didn't start. I hope you have a wonderful day and can forget all about this.