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Re:Repair and Remain: How to do the slow, hard, good work of... by PopAlongKid on Monday August 12, 2024 @03:52PM (#41228565)
>why can't you hire help out of pre-tax income, like any other business can

Leaving aside the obvious fact that your personal activities are not a business[0], you can indeed hire help out of pre-tax income -- in the U.S. no one pays income tax on their gross income, only their taxable income. By the time common tax credits are factored in, a married couple with children may easily have $30-40K of gross income each year not subject to income tax.

Many, if not most, homeowners do not need to go out and work extra hours to pay someone to do work to repair their property, any more than they need to work extra hours to pay for food and clothing, so looking only at the marginal tax rate is misleading (as in the example above of earning an extra $167 to have $100 after tax).

Further, work you pay for that improves the property (as opposed to repairs) is added to the tax basis of the property, reducing future taxable income when the property is sold. Along with the potential to exclude up to $250K/$500K (single/married) of gain[1] from selling the property is a huge source of pre-tax income.

[0]and even businesses can only deduct expenses for people they hire for services that are related to generating a profit.

[1]Section 121 exclusion

Re:Repair and Remain: How to do the slow, hard, good work of... by sokoloff on Monday August 12, 2024 @03:58PM (#41228638)
The decision to work extra in order to pay to outsource a task vs doing it yourself (as was framed above) is exactly the type of economic decision where the full marginal tax rate applies.
Re:Repair and Remain: How to do the slow, hard, good work of... by beaglesss on Monday August 12, 2024 @03:57PM (#41228626)
Fica is ~15% on gross and get paid both ways, when you earn and then double dipped as tax on labor you hire.

So that's about 30% gone right there for engaging in labor trade before you even consider income tax