What is the appropriate use of "Self-Rent"?

My wife operates a sole proprietor business in a building that we own together. I would like to charge her business a fair market rent to reflect the contribution the building makes to the bottom line - don't like paying self - employment tax on a business that is rent free. Form 1040 Schedule E has a category "Self-Rent", but the instructions are less than clear. By definition, "Self-Rent" is not an arm's length transaction.

If anybody can provide guidance on making this work, it would be appreciated.

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