Income Property
Categories: Real Estate, Tax
A rental. One you own.
You buy it to gain income from it. An office building. A half dozen residential "dwelling units." A ranch that charges cattlemen $150 a head a season to let them graze and crap all over your land. (It allows the cows to do this, too.)
Income from property investments like this is usually taxed at ordinary income rates, i.e. very high. So most investors love putting debt on these properties to buy them leveraged, because the interest on the debt is entirely tax deductible, making a 7% interest loan "feel like" a 3.5% loan in most cases.
Regardless, the property then generates income (duh) for the buyer.
See: Commercial Property.