residence For purposes of this chapter— (1) In general The term single-family residence means a residential property consisting of 1-to-4 dwelling units. (2) Exceptions Such term shall not include— (A) any unoccupied single-family residence acquired through foreclosure, (B) any single-family residence that is— (i) not rented or leased, and (ii) used as the principal residence (within the meaning of section 121) of any person who has an ownership interest in the applicable taxpayer, or (C) any single-family residence constructed, acquired, or operated with Federal appropriated funding sources. (c) Acquisition