no sense buying it. she can gift it to you. you get her basis. between related parties her selling to you at a loss would not be allowed. her selling at a profit is not required and doesn't make economic sense. the law allows unlimited gifts between spouses. so no gift tax return is required. you can enter as negative on her Schedule C Cost of Goods Sold - other cots and as a positive on your Schedule C same line
or you can use the material and supplies line.
