My wife had her daughter take over her salon business in 2023, mid year. Is there any special reporting that need to be filed other than schedule C?

there is a box to check as you walk through the business questions to say that the business is closed.  If you select this box, TurboTax will walk you through the rest to report the disposal of assets.  Since she closed for good, and had assets that she disposed of (whether she sold or gave them to her duaghter), she would file a final return and include form 8594 with it to dispose of the assets either by selling them or turning them into personal use.  

The above information is for your federal return. State rules vary, but you may have additional reporting requirements with your state.

Then she will still need to file a separate Schedule C to report the income she receives from renting the chair in the salon. 

 Disposing assets