Union High School District No. 2 v. Paul‪.‬

Weare left her estate to the trust company. Gano, a resident of Colorado, was one of the beneficiaries. During the years 1938 to 1941, inclusive, she received, through the trust, dividends totaling over $20,000. She paid the normal income tax thereon, but refused to pay the surtax assessed by the director. The trial court held with her and to review the judgment entered accordingly the treasurer and director prosecute this writ. The facts are not in dispute. The five assignments present a simple question of law, i.e., Was this income derived from the trust or from intangibles? If the former the judgment must be affirmed, if the latter it must be reversed.