No. A security deposit is not income for the landlord. It belongs to the tenant and must be returned to the tenant, unless there is a basis to deduct from the deposit pursuant to Civil Code section 1950.5.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult with your own attorney.