member For purposes of this paragraph, the term component member has the meaning given such term by section 1563(b), except that the determination shall be made without regard to subsection (b)(2). (c) Other rules and definitions For purposes of this section: (1) Single-family residence The term single-family residence means a residential property consisting not more than 4 dwelling units. (2) Own (A) In general The term own , with respect to a single-family residence, means having a direct majority ownership interest in the single-family residence. (B) Special rule for certain sales (i) In general Notwithstanding subparagraph (A), for purposes of subsections (a)(2)(A), any single-family residence which is owned by a covered taxpayer as of the first day of the taxable year and which is sold or transferred during such taxable year by the covered taxpayer in a sale or transfer described in clause (ii) shall be treated as a single-family residence which is owned by the covered taxpayer as of the last day of such taxable year. (ii) Sales described A sale or transfer is described in this clause if such sale or transfer is a sale or transfer to— (I) a corporation or entity engaged in a trade or business, (II) a group of more than 2 individuals, or (III) a person who owns any other single-family residence at the time of such sale. (d) Reporting (1) In general The Secretary shall require such reporting as the Secretary determines necessary or appropriate to carry out the purposes of this section, including requiring a certification of the following from each purchaser or transferee of a single-family residence: (A) The name and address of the purchaser or transferee. (B) Identify whether the sale is a sale described in subsection (c)(2)(B)(ii) of the Internal Revenue Code 1986. (2) Failure to report (A) In general Any person who fails to report information required under paragraph (1) or who fails to include correct information in such report shall pay a penalty of $50,000. (B) Reasonable cause waiver No penalty shall