Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses Ordinary income tax rates (up to 37% in 2018) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayes taxable income and filing status as shown in the following table Preferencial Rate Single Up to $38,600 $38,600 but not over $425,800 Over $425,800 Filing Jointly* Head of Household Up to $51,700 > $51,700 but not over S452,400 Over $452,400 096 Up to $77,200 > $77,200 but not over $479,000 Over $479,000 15% 20% The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $38,600 if married filing separately Corporate Income Tax Rates: In a significant change in the corporate tax rate structure, the TCJA revised the corporate tax rates from a graduated rate structure with rates ranging from 15% to 35% to a flat rate of 21%. This revised corporate rate structure applies to tax years beginning after December 31, 2017