Originally Posted by paxton

You can sell your stock provided you execute the trade before the final session of 2004. It's not settlement date that matters here (it used to be) but the date the trade was recorded (actually made).

If the sale of your stock results in a short term (ST) realized loss, you can deduct all of that to offset any ST realized gains from other sales in 2004. If you have more losses than gains, you can use up as much of the gains you have and carry over the rest to future tax years. You can also use $3,000 of the loss to offset your ordinary income for 2004.

Keep in mind to use the loss you can't purchase the stock within 30 days of the sale (both before the sale and after). Otherwise your actions would result in a wash sale and the loss could not be deducted.