I'm an independent developer who has been working for the past year or so on product X. I don't have a company created that is associated with the product, as we have yet to officially launch (no revenue yet). I'm in talks with company Y who would like to acquire product X (the product and all IP associated with it; not acquiring a company, as there is no company, just the product) for cash-only and hire me as an employee. Will the acquisition itself be taxable as a capital gain or as regular income? (if it's the latter, will I pay self-employment tax on the acquisition amount?)
I'm in Washington (the state), we don't have a state income tax, hence any amounts would be federal.