The Mesabi Trust is a flow through entity for U.S. federal income tax purposes.
Are you sure you received a 1099?
I am thinking that you should have received a Schedule K1 or perhaps a simple "Grantor Trust" letter reporting these items to you.
Since the Masabi Trust is a flow through entity the Royalty Income and administrative expenses would be reported by you on Schedule E. The reduction to basis of $114 probably does not get reported on your current tax return. This $114 reduces your investment in the Trust. If you were to sell the shares of the trust then $114 would reduce your basis in the trust. For example let's say you put in $214 to purchase the interest in the trust. The $114 would take this cost down to $100. If you sold it the calculation for your realized gain would be "proceeds received - basis (100).
I hope this provides the clarity you were looking for. Here is the Masabi Trust website which confirms the trust is a flow through entity. www.mesabi-trust.com
Please let me know if you have any further questions.
What about the $7.00? I received the amounts in a broker's consolidated form 1099. The $358 was in the 1099-MISC section.
The $7 would also be reported on Schedule E on line 19 as "Administrative Expenses"
Regarding the 1099. I understand now that you received this through your broker. (not directly from the company) So this makes sense that it was reported on a 1099.
Please let me know if you need further clarification.