Hypothetical scenario: I identify a gap in a company's product offering. I, as an independent developer, write a desktop, web, or mobile application that bridges this gap, and I contact the company in question. They like the product, and agree to acquire it from me.
To be clear, this scenario again isn't suggesting I've written an app and have put it on the App Store for continuous sale, but that I've written an app, and it has been acquired for a lump sum of money.
How is this taxed in the US? (Specifically, California.) Some thoughts I have:
- Self-employment tax rate (currently 15.3%, I believe)
- CA sales tax (currently 7.25%)
- (Other income tax?)
Would this be taxed as a sale? Self-employment income? Both? What if I'm not self-employed, but the sale is much higher than my gross income? Example: $100,000 salary at company ___ that has no stake in the app invention, $1,000,000 app acquisition.