Yes, you will need to file. Since you have a check mark next to gross income of more than $10,000, you will need to file. The net income does not come into play if your gross income is greater than $10,000.
You will need to file the 541 and distribute the k-1's which will include the distributions.
"Trust. The fiduciary (or one of the fiduciaries) must file Form 541 for a trust if any of the following apply:
- Gross income for the taxable year of more than $10,000 (regardless of the amount of net income)
- Net income for the taxable year of more than $100" CA 541 Instructions
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
