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Level 1

How do I enter a QCD that has a basis in it? TT does not fill out form 8606 correctly. Please give exact steps..

 
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Level 20

How do I enter a QCD that has a basis in it? TT does not fill out form 8606 correctly. Please give exact steps..

A QCD is not permitted include basis.  Only the amount that would otherwise be taxable if all amounts in all of your traditional IRAs were distributed during the year is permitted to be reported as QCD.  TurboTax does not enforce this limitation, so you must do the calculation yourself and enter as QCD (the amount "transferred to charity") only the otherwise taxable amount.  (I've previously reported this shortcoming of TurboTax, but there has been no action regarding any changes to improve this.)  If the amount of money in your traditional IRAs in excess of your basis is sufficient to cover the entire amount transferred to charity, the entire amount is reportable as QCD and TurboTax prepares Form 8606 correctly by excluding the entire QCD amount from Form 8606 line 7.

Any amount of the distribution transferred to charity in excess of the amount permitted to be reported as a QCD must be reported on Schedule A as a charitable deduction by you separately entering the charitable contribution under Deductions & Credits, the same as if the IRA distribution was paid to you and you subsequently made a contribution to the charity.

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Level 20

How do I enter a QCD that has a basis in it? TT does not fill out form 8606 correctly. Please give exact steps..

Level 20

How do I enter a QCD that has a basis in it? TT does not fill out form 8606 correctly. Please give exact steps..

When you say that TT does not fill out form 8606 correctly, do you mean it does not generate a form 8606 at all?
That is correct.  if  the amount of pre-tax money, in all your traditional IRAs, is sufficient to cover the entire amount transferred to charity, none of your basis is considered to have been removed. See the above reference, at SweetiJean's comment
This is different from a "normal" distribution (withdrawal) where you are required to treat a part of the distribution as basis.
Level 20

How do I enter a QCD that has a basis in it? TT does not fill out form 8606 correctly. Please give exact steps..

A QCD is not permitted include basis.  Only the amount that would otherwise be taxable if all amounts in all of your traditional IRAs were distributed during the year is permitted to be reported as QCD.  TurboTax does not enforce this limitation, so you must do the calculation yourself and enter as QCD (the amount "transferred to charity") only the otherwise taxable amount.  (I've previously reported this shortcoming of TurboTax, but there has been no action regarding any changes to improve this.)  If the amount of money in your traditional IRAs in excess of your basis is sufficient to cover the entire amount transferred to charity, the entire amount is reportable as QCD and TurboTax prepares Form 8606 correctly by excluding the entire QCD amount from Form 8606 line 7.

Any amount of the distribution transferred to charity in excess of the amount permitted to be reported as a QCD must be reported on Schedule A as a charitable deduction by you separately entering the charitable contribution under Deductions & Credits, the same as if the IRA distribution was paid to you and you subsequently made a contribution to the charity.

Level 20

How do I enter a QCD that has a basis in it? TT does not fill out form 8606 correctly. Please give exact steps..

As indicated by Hal_Al above, if your only traditional IRA distribution is entirely a QCD (and all of it is permitted to be a QCD), no Form 8606 is needed or produced by TurboTax since such circumstances result in no change to your traditional IRA basis.  Form 8606 is only needed if you made a distribution at least some part of which is not a QCD.