Patrick E. Catalano v. Commissioner of Internal Revenue

OPINION

THOMAS, Circuit Judge.

In this appeal, we consider whether an order granting relief from an automatic stay always constitutes an abandonment of property under bankruptcy law. We conclude that it does not, and we reverse the decision of the Tax Court.

I

In 1988, Patrick Catalano purchased a residential condominium in San Francisco, California for $1.8 million. He financed $1.4 million of the purchase price with a loan from Wells Fargo Bank that was secured by a lien on Catalano’s residence. Catalano stopped making payments of either interest or principal on the Wells Fargo loan as of June…