Aaron Found a Prototype of a New Pair of Glasses

question 9

Essay

Aaron found a prototype of a new pair of glasses with Internet service and other computing capabilities while in a bar one evening. He offered the prototype to the owner of a magazine and blog that reviews new digital devices. The owner paid Aaron $10,000 in return for the prototype. What tax issues should Aaron consider?

---

Definitions:

Dot Coms

Companies that operate primarily on the internet; the term became widely used during the internet boom of the late 1990s.

High-Tech Companies

Businesses involved in industries that rely heavily on advanced technological developments, often in fields like information technology, biotechnology, and engineering.

Investors

Individuals or entities who allocate capital with the expectation of receiving financial returns.

Health Care Reform

The process of making changes to health policy, health systems, and health care delivery to improve access, affordability, and quality of health care.