To answer your question, the inherited IRA distribution should not appear on the 8606 form and it does not affect the totals of all your IRAs and thus affect the cost basis of other IRAs you might have. The distribution should be included in the totals of the distributions on the 1040 as you mentioned. Without having the form in front of me, I don’t know the exact line on the current form. Hopefully the glitches are fixed. I was affected by the inherited IRA glitch for 2020 taxes, but last year everything entered correctly and I didn’t have any issues.
The other thing I wanted to mention in reference to some of the other replies, is that depending on when your Inherited IRA was established, you may not be subject to the 10-year withdrawal rule. It is my understanding if your IRA was set up before the law changed, your distributions are grandfathered so to speak and you don’t have to take withdrawals within 10 years. You should check further to see the timing of your IRA to see if it is subject to the new rule.
