Get your taxes done using TurboTax

how about this, a minor change ( since it best to pair STCL with STCG):

 

don't take the LTCG in year 1

$10K STCL

deduction  $3K STCL

carryover to year 2  $7K STCL

take $7K STCG in year 2

net $0