I will  be amending  my lease.

It sounds like I may need to file an amended return.

There is a way to avoid depreciation recapture without doing a 1031.It's call Section-8 housing.From pub 544:Low-­income housing includes all the following types of residential rental property.Low­-income rental housing held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under provisions of state or local laws that authorize similar subsidies for low-­income families.The applicable percentage for low-­income housing is 100% minus 1% for each full month the property was held over 100 full months.

Should I go back and amend my return to include this as business expenses or is there a better option like rolling it as startup expenses for 2017?

You may wish to confirm that the new 401k provider will handle the ongoing compliance support such as any required 5500 filing (e.g. 5500-ez for a one-participant plan with assets in excess of $250,000), any required tax reporting (e.g. 1099-r in the event of a distribution or in-plan Roth conversion), mandatory plan updates and amendments, etc.4.

If he made amendments to your agreement this is likely a lot cheaper than legal fees. 

I would do recommend an amended refinance, which includes this balance and any other cost you may incur, and escrow for his taxes and since rates are rising I would recommend an increase in interest rate for your troubles. 

Plaintiffs are still investigating and discovering the extent of this Ponzi scheme and reserve the right to amend as more facts become available.32.

Write up an amendment to remove her from the lease.

Also, is this something that would get amended into the contract if they do accept?