Your situation and
the way you handle it depends on from whom you inherited the IRA. If you inherited the IRA from a deceased
spouse and you rolled the IRA into your own IRA, then the basis in that IRA is
considered to be your basis now.
In that case for IRA accounts, the basis
of all accounts is considered when you take a distribution from any of your
IRAs. So, you do not specify a basis for
each individual account, instead you report the total basis.
When you have entered all of your 1099-R forms reporting the
distributions that you received in 2017, there will be some follow-up questions
when you click Continue from the 1099-R summary screen.
One of those questions will ask if you made and tracked
non-deductible contributions to your IRA accounts. Choose Yes
and you will be able to enter the basis for your inherited IRA. There should be an EasyGuide option on that
screen to take you through this process in greater detail if you like.
If the inherited IRA
came from someone other than your spouse, then the basis of that account
alone must be considered when determining the taxable amount of the distribution. TurboTax is not set up to be able to handle
that calculation and it cannot track the basis for that account. You can still use TurboTax for your return,
you will simply need to calculate the taxable amount of the distribution and
keep track of the basis on your own.
[edited 2/27/18 | 6:20 am PST]
