The reason I am asking is that from my understanding since this is an exchange rate gain from a mortgage payoff due to a sale of a foreign residence (not just any foreign exchange rate gain). What I heard was that if we held the property for more than 1 year (we actually held it for 6 years), we would qualify for lower long term capital gains rates. Is this correct? And if so, should I enter this gain in the Capital Gains section of my return.
