Yes, the
decorative items can be claimed as a business expense on her Schedule C.
As long as the decorative items are not something that she
would be keeping as an inventory to sell to her clients, then they would be
included as an expense and not in inventory.
She can choose the category that makes the most sense to
claim the items. There is not a
particular place that is most appropriate for them. One possibility is to include them under the Less Common Expenses section, using the
Other Miscellaneous Expenses
category. Doing so will allow you to
enter your own description for the expense so that you can categorize it any
way that makes sense.