Updating information on Fishing License and any tips appreciated:

So Client acquired Federal Fishing License when acquiring the boat (commercial fishing) in 1992. An amount for the  Federal License was not separated at time of purchase. Was told by Client it was next to nothing.  Client has since sold boat with no tax basis (cost - acc dep), but still has licenses.

Now from that period going forward fishing licenses have been limited and as such the price for them has significantly increased.  Licenses are now allowed to be amortized over 15 years.

So how would you handle if your client sold his Federal Fishing License for $75,000 and one of his State Licenses for another $ 30,000?  The buyer will amortize over 15 years ; correct?  And then when he resells it , presumably for a gain, he will have both ordinary or recapture gain and capital gain.

Do you think it is far fetched to use a cost basis on the State license $ 14,000 (28 years @ $ 500 per year actual payment) so that the sale shows both capital gain and ordinary?  What other thoughts if it were your client?