KarenJ
Intuit Alumni

Deductions & credits

Unfortunately it is not correct.  It is considered ordinary income and is taxed at ordinary income tax rates.  
Please see more information on this and an example of how it is calculated on the following website.
<a rel="nofollow" target="_blank" href="https://www.ustaxfs.com/foreign-mortgage-repayment-exchange-rate-gain/">https://www.ustaxfs.com/fore...>