Tax Reform and Economic Recovery Act of 1992

[AI summary unavailable — showing source text] Tax Reform and Economic Recovery Act of 1992 - Title I: Reduction in Capital Gains Tax for Individuals - Amends the Internal Revenue Code to allow a capital gains deduction for noncorporate taxpayers for assets held from one to three years. Provides special rules for gain or loss from the sale or exchange of collectibles and sales of interest in partnerships. Disallows such a capital gains deduction in computing the alternative minimum tax. Revises the formula for determining gain from the dispositions of certain depreciable realty to take into account depreciation adjustments (adjustments allowed or allowable for exhaustion, wear and tear, obsolescence, or certain amortization). Title II: Limited Relief From Passive Loss Rules - Provides for the treatment of rental and nonrental real estate activities under the limitations on losses from passive activities. Title III: Tax Credit for Children - Allows a tax credit of $125 for each child of an eligible individual. Title IV: Increases in Individual Income Income Tax Rates - Increases the tax rates for higher income individuals. Imposes a surtax on the individual tax or the alternative minimum tax of an individual whose income exceeds…