Minority Capital Formation Act of 1992

Minority Capital Formation Act of 1992 - Amends the Internal Revenue Code to allow a deduction for investment in qualified minority fund interests. Limits such deduction to $300,000 ($150,000 in the case of a married individual filing separately).

Allows a deduction for investment in the stock of small minority business corporations, up to certain limits.

Allows a taxpayer to elect, in lieu of such deduction, to take a credit of: (1) 15 percent of the aggregate bases of qualified minority fund interests; or (2) ten percent of the aggregate bases of small minority business stock. Limits the amount of such credit.

Provides carryover provisions for the deduction and the credit.

Provides for recapture of such deductions in computing bases for capital gains purposes. Requires an interest charge on the disposition within five years of any property whose bases have been reduced by such a deduction.

Excludes from gross income 50 percent of any gain on the sale or exchange of any property by a qualified minority fund if such property was held for at least five years.

Defers qualified reinvested capital gain, in the case of an individual, for up to the ninth year after the sale or exchange. Places a dollar limitation on such amount. Makes ineligible for such deferral married individuals who do not file joint returns and estates or trusts. Terminates such deferral if qualified property is disposed of before five years after its purchase.