Pub. 2 2013 Issue 2

February/March 2013 15 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s AD INDEX Banks Bankers’ Bank of Kansas (BBOK).............................pg 2 First Bankers’ Banc Securities, Inc..........................pg 31 First National Bank of Hutchinson...........................pg 30 INTRUST Bank........................................................pg 30 Core Processors DCI...........................................................................pg 32 CPA/Accountants BKD............................................................................pg 3 Financial Services The Kansas Bankers Surety Company.....................pg 11 Conetrix....................................................................pg 24 The Baker Group......................................................pg 26 Integrated Services Diebold.......................................................................pg 5 Other 2013 Tax Considerations w Medicare Tax on Passive Income – For bank shareholders with modified adjusted gross income (MAGI) of more than $200,000 for single filers ($250,000 for married filing jointly), a Medicare tax of 3.8 percent is applied to the lesser of net investment income or the excess of an individual’s MAGI over the applicable threshold. Net investment income includes bank income for shareholders considered passive investors. w Medicare Tax on Earned Income – For bank shareholders with AGI of more than $200,000 for single filers ($250,000 for married filing jointly), the Medicare tax will increase by 0.9 percent on wages and self-employment income in excess of the applicable threshold. w Repair Regulations – Late in 2012, the IRS deferred the implementa- tion of the repair regulations to January 1, 2014.As these new regulations are extensive, banks should consider evaluating the necessary changes before 2014 to ensure proper implementation. While this article summarizes some of the key changes, please visit the BKD Thought Center (bkd.com/thought-center ) for more information. A member of BKD National Financial Services Group, Brian has more than nine years of providing tax consulting to financial institutions, for-profit universities and other service organizations. His experience includes general corporate tax planning and compliance, mergers and acquisitions as well as FASB ASC 740 (tax provisions) and FIN 48 (uncertain tax positions) accounting. He is a member of the American Institute of Certified Public Accountants, Missouri Society of Certified Accountants and Kansas Society of Certified Public Accountants. Brian is a 2001 graduate of The University of Kansas, Lawrence, with a B.S. degree in accounting.