Should taxes be paid for running business out of house?
It does not matter where you run your business from, all business profits are fully taxable. The people running the business are responsible for the payment of the taxes. Merely living in the same home with the business operator does not obligate you for their tax liability. If you have actual evidence of tax evasion, file a Form 3949-A with the IRS. (Hunches are not evidence. If you have no actual evidence, the IRS will not act upon your report.) Edit: The business operator pays income taxes on the business income. If you are not a partner in that business, you have no tax liability there. You ALL are obligated to the payment of the property taxes, assuming that you are now all owners of the home on the passing of your father. Two totally different taxes involved here.