I have a very similar problem - I received a 1099-R for an inherited non-spousal IRA with no basis, and also made nondeductible contributions to my own IRA. TurboTax is putting both into Form 8606 and not treating the inherited IRA as fully taxable.
I actually spoke to a TurboTax specialist yesterday, who clearly didn't know this bug exists and told me that TurboTax was handling this correctly. I was pretty sure that was not right, and more sure now that I've read this post.
Is there any way to make sure Turbo Tax know there are other people having this problem, and to have them alert us when it is fixed?
Thanks.
