Toggling No to Yes and back to No on the inherited IRA basis question only corrects the amount on line 7, Form 8606 temporarily. When you restart TurboTax, the amount on line 7 includes the inherited IRA distribution again.
You can also temporarily fix the problem by changing the code in box from 4 to 7 and back again. But, again, the fix is only temporary.
I believe TurboTax requires a more permanent fix to the coding.
