You got it right - the sale was 4000 USD. Also the exchange rate used in W-2 is much closer to that day's average exchange rate I found online. So since this was a sell-to-cover transaction the loss was short term and due to broker's poor exchange rate. After I fill in these hypothetical values in TurboTax this is what I see in Form 8949:
b) and c) are the same (date aquired and date sold)
d) proceeds as reported on 1099-B ($4000)
e) cost basis is not reported on 1099-B so it shows as $0
f) Adj. code O
g) Amount of adjustment -$4200
f) Gain/loss: -$200
Does this look about right?
