First you have to decide if she qualifies for having a home office which is a space used regularly and exclusively for her business. If you watch TV in that space, for example, it doesn’t qualify. You can use either a standard method or actual expense method to deduct a home office. You would add the home expenses included utilities used in business and multiply that by the square footage of the office divided by the square footage of the home. For 2023 you would prorate that amount for 2 months since it would have been used only for that time. If you itemize and own your home the amount of expense for mortgage interest and property tax not included in the home office calculation can be itemized on Sch A. If all of this is daunting you might seek a professional tax preparer to educate you for your first return.
