Regarding the sale of a foreign residence, where and how do you report the exchange rate gain from the mortgage payoff on my tax return?

The foreign exchange rate gain is reported on Schedule 1, line 8 and then Schedule 1, line 9 (which includes all your additional income) is transferred to line 7a of your 1040.

The exchange gain is considered ordinary income and not capital gain income.

When your return is open:

1. Click on Federal taxes at the top of the screen
2. Click on Wages & Income
3. Scroll all the way down to Less Common Income
4. Scroll down to Miscellaneous Income, 1099-A, 1099-C
5. Click on start
6. At the bottom of the list, click on Other reportable income
7. Click Yes for other taxable income
8. Enter description such as Foreign Exchange Rate Gain and the amount

[Edited 03.22.20 | 2:02 pm]

Thanks.  If we owned the property for longer than 1 year, would we still enter this as ordinary income?

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.

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/foreign-mortgage-repayment-exchange-rate-gain/</a>

Thanks KarenJ.  Appreciate the help on this.