Q. Is the Rental Application Fees (Parents Cosigining and Student will be the tenant) to acquire rental considered a Qualified Expense since it was a necessary expense to acquire "Room"?
A. Yes. It's part of the "room" cost.
Q. How about Security Deposit Fees which was also necessary to acquire "Room"? Note: The rental manager mentioned that we won't get security deposit back, because it was considered cost to prep the "Room" for the next renters once our lease was up.
A. Normally no, since you usually get it back. In your case, you know you won't get it back, so yes.
But, the amount you can claim is limited to the lower of your actual cost or the school's "allowance" for room and board. See the discussion at the other tread you're following. https://ttlc.intuit.com/community/college-education/discussion/re-is-eating-out-considered-board-exp...
