the article cited is from an IRS webpage that is for homeowners
Publication 530 (2020), Tax Information for Homeowners
https://www.irs.gov/publications/p530
if this was investment property an old article arrives at a different conclusion
https://www.washingtonpost.com/archive/realestate/1980/04/26/forfeited-deposit-is-not-deductible/93a...
