What do I put where it asks me if I stopped babysitting in 2020 if I have stopped but only due to covid-19 and plan to begin back as soon as its gone?

[maeganandkori]

I earned money from babysitting from Jan 1st 2020 until April, 1st 2020 and I plan to start back so I wont stop for good but I have currently stopped.

[HelenC12]

Answer, no, you did not stop your business in 2020. Answering no will keep all your babysitting information in TurboTax so the information will carry over to future returns.

• Your babysitting business is a "going concern". The going concern principle is the assumption that an entity will remain in business for the foreseeable future. 

[Carl]

Understand that just because you stopped babysitting in April, does not mean in any way, shape, form or fashion that you closed your business. Your business can still be considered "open" for the entire tax year. Of course, your income will be less and any assets you are required to depreciate will continue to do so. Just be aware of that.

Now if you want, you "can" close the business say for example, at the end of April 2020. If anything, that will stop depreciation. Then when you open your business anew you treat it like it's a new business (even using the same EIN) and you just have to reduce your cost basis on any depreciable assets, by the amount of depreciation already taken on those asset. Then depreciation starts over from year 1 using the new cost basis.