Does anyone know what the effect of holding a publicly traded trust like Mesabi Trust (MSB) in a traditional IRA account? This is what I've found so far on the Mesabi website:
For income tax reporting purposes, each holder of units in the Trust is considered to be a grantor or substitute grantor as well as a beneficiary of the Trust, which means that Mesabi Trust is a pass-through entity similar to a partnership. As such, in lieu of the Trust paying income taxes, the unit holders report their pro rata share of the various items of Trust income and deductions on their income tax returns. This reporting is required whether or not the earnings of the Trust are distributed to the unit holders. Trust distributions should not be included in income tax returns as "dividend income" and are not eligible for the dividends received deduction for corporations or for the lower marginal tax rates available for certain qualified dividends paid to individuals.
You should have received or will receive shortly the 2018 calendar year Forms 1099-INT and 1099-MISC which will report your share of interest and gross royalty income.