Does the amount to buy out a spouse of primary residence during divorce increase the home's cost basis?

[bwa]

It does not.  There is no gain or loss on transfers between a husband and wife, including those incident to a divorce.  The basis after the transfer is the same as before.  Any additional consideration is disregarded as it is part of a property settlement.

[yoyoyiggityyo1]

Would it make a difference if the home is held in a revocable trust while married, but sold to one of the divorcing spouses at the dissolution of marriage settlement, or does the original cost basis hold regardless of ownership type?

[Anonymous_]

@yoyoyiggityyo1 

A revocable trust is treated as a disregarded entity for federal income tax purposes, so it would not make a difference.