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Yes, I agree with Dan that if the client still has the same route with a reduction of several customers, then I'd say company bought back those several customers for the $30K. My answer would be different if this was not substantially the same route though. I'd prorate the cost, amortization, and remaining basis saying that what was bought back was 30/130 or ~23.08% of the route and report that against the $30K proceeds so that the client would report ~ $21, 460 of gain (30K - 8540 of basis). What I wouldn't do is frontload an entire $30K of basis against this sale and report -0- gain.

Are you aware of the "substance-over-form doctrine"? Why would you not use it to your client's advantage? Looks to me like you would have a gain of about $12,000 if basis is allocated on 30,000 / 130,000 figures.

You are correct, the TCJA limited like kind exchanges, which is what a trade-in is, to real property only.

that's it, the step-transaction-doctrine

That is correct, I was thinking roughly 22,000 instead of 12,000 as I posted above. There are other possible methods of allocating such as sales or volume per store.

My first thought was a sale of an asset and a purchase of an asset. But, I see the step-transaction that Danrvan's explaining.

Look at the substance of the transaction. The bakery reduced taxpayers route by a few stores and compensated him $30,000. That is how I would treat it. They went through some extra hoops to get there for legal/admin purposes, but they still have the route minus a few stores + a check for $30,000.