TurboTax is correct. You contributed $7,000 to a Traditional IRA. You took a distribution of $6,967 (your Roth Conversion). You still have a basis of $33. Your $33 of basis did not disappear when you took your distribution. If you make another contribution to the Traditional IRA of $7,000 and leave it there long enough to earn $33 of interest, then do a Roth of conversion of the entire $7,033, it will have a basis of $7,033, not $7,000 with $33 of gain.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
