I have a residential rental property mortgage loan that was paid off early (not refinanced) on 12/13/2021 instead of 2025. There is a balance of $237 of unamortized loan costs as of 12/31/20. During my research on how to handle the unamortized balance of loan costs, I found 3 common opinions:

1) Report the unamortized balance as a current year expense  2021 Exp->$237

2) Add them to your refi costs of the new loan and that new total gets deducted over the life of that new loan (Not applicable in this instance), or

3) Leave the original entry for those amortized costs on the old loan and they will continue to be deducted over the original lifespan of that old loan. 2021 Exp->$49

Does anyone have any definitive ruling?