Hello @Sherry39 and welcome to ABB CC from a fellow Host across the miles in Auckland, New Zealand.
Gosh, when will local authorities and others wake and realise it's perfectly fine to let out a Private room within one's home?
Have you looked up what information your Taxation office has?
Use it as a tool to counter any claim you may be needing to address the situation.
Use related keywords here in the CC Search box and others contributions about such a topic will come up.
All the best in your wee nest.