Are water licenses a 197 intangible deduction?

[usernamesarehard]

Used for developing land and purchased from the city. 

[Critter-3]

If these are not a one time fee  and they can be resold like another asset then ...

You must generally amortize over 15 years the capitalized costs of "section 197 intangibles" you acquired after August 10, 1993. You must amortize these costs if you hold the section 197 intangibles in connection with your trade or business or in an activity engaged in for the production of income.

[usernamesarehard]

It is a one time fee and is attached to the land. Basically it's purchasing a right to connect to the city water infrastructure. I don't think I would be able to separate it from the land then sell it. Does this affect my ability to amortize it? 

[Critter-3 · Accepted solution]

Then based on what you described  it is added to the cost basis of the land ... it cannot be amortized or expensed. 

[Mike9241]

if its a one-time fee it becomes part of the cost of the land.