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. I noticed that you planned to expense your clients unamortized loan costs for a loan the client refinanced. Would you share where you got your instruction on writing off lump amount in current year.  During my research on how to handle the unamortized balance of loan costs, I found the following 3 common opinions, but nothing directly from IRS:

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 but if relative I saw that it may depend on whether refinanced with same company or depending on terms of terms.), 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