How much to pay a neighbor for electrical help

[newbury]

An electrician does not make even $50/hr. What a contractor charges includes all sorts of costs. Plus this is cash on the side....he will pay no taxes

Short story.....I tried to help out a neighbor who is in the cement business and needed extra money. He is a laborer. I had the work quoted by a contractor and the cost was $14k. My neighbor needed some guys from his crew as the job was sizable. They quoted me the same price as the contractor. When I asked him why, he said they figured $75/hr for their time. But I knew they made $16/hr before taxes. I was willing to pay them $30/hr....cash....which is more than double their take home pay. That was unacceptable. They wound up not doing the work. Some people are greedy....some people are stupid....some people are poor for a good reason.

A side job means tax free money. It is not valued at the going contractor rate in my opinion.

There is no "tax free money" if you get audited.

 

[Industrial Toys]

I mentioned before I hired a painter from an Ad at the grocery store, $15.00/hour.

He came to look at my job, stroked his beard and said, "looks like a three thousand dollar job", or something like that.

No, I said, I buy the paint, and material and you get started painting at $15.00/hr.

He WAS a GREAT painter. Although his life was a MESS!

I guess you can't fault a guy for trying.

People!

 

[ultrarunner]

Your brother needs to get a new tax guy... or you need to get a new brother! :laughing:

But seriously, I wonder why the tax guy insisted on giving you a 1099. Your brother couldn't deduct your labor if you were working on his personally owned and occupied house. There's no business purpose for it. If the reason was only to document his basis in the house when he went to sell it, that's kind of bullcrap too. In all of the years that I did taxes for a living I never once saw someone get audited to justify the basis in a personal residence. You may have different circumstances in California with the way your real estate market goes up and down, but here in the Midwest you aren't going to see appreciation in most personal residences that are going to send you into a taxable position when you go to sell it (since you can exclude the gain up to $xxxxx).

===============

Had to laugh about the person that posted about their neighbor wanting "overtime rates" for helping on a Saturday.

It was his personal residence but he is a Realtor... something about inventory???

Anyway... to say I was shocked would be an understatement... also, the 3k was simply deposited into my account without a word.

He was 23 or 24 at the time... part of his home was used for his home office and a large portion for a licensed daycare for no more than 6 kids...

Every family has someone that always comes out on top... at least this is my experience.

In grade school he was selling candy during recess... would buy the store pack and resell... today he is the well to do one in the entire family... always working a deal and basically self employed his entire life except when working summer jobs as a lifeguard during high school and college.

Don't talk to me about taxes... having rentals in other states is a reporting mess as... a real accounting nightmare too complex for my simple brain.

I've helped a lot of friends and neighbors over the years... digging, repairs, etc... but I have never charged... the good ones reciprocate and I have had several bend over backward neighbors... all around retirement or older that have been fantastic with advice or having that special tool needed or staying home to show the inspector so I could go to my day job...

Met some real shady people that prey on people doing jobs for them... this one guy... a real wheeler dealer had his spec house repainted... told the guy to give him a price complete... it was 3k... in and out of a vacant home with prep needed... when the job was done... he paid the guy half or $1500... saying he was lucky to get anything since he was operating as an unlicensed contractor... it is a situation I have come across several times... thing is he knew all this ahead of time...

I am use to doing all the work and back in the day... I built/rebuilt a lot of residential fences... which are all still in great shape 35 years later... some neighbors were very generous without being asked... one old guy said he use to do this kind of work but can't... asked me what I spent on materials... I gave him a off the top of my head figure... he said is that all... then I said I would have to add it up... the next day he asked if I had added it up... I said $785 total... the next day he hands me an envelope with 8 $100 bills and said I can't thank you enough!!!

Those that do real work have a better appreciation of work done...

 

[mark02tj]

Those that do real work have a better appreciation of work done...

Well said!

 

[Travelover]

Ahhhh, that complicates things. I've changed panels and rewired three or four houses I've had, but I've never done that step. I wouldn't be sure how and would have to seek help to do that. My plan would be to put an automatic transfer switch between the meter and the panel to switch the main feed.

Just to clarify, what I put in was an interlock, not a full blown transfer switch. This is simply a sheet metal device that prevents a tandem double breaker used as an inlet from being on at the same time as the main breaker. The double breaker is wired to a special recessed male plug that you hook the portable generator to. It is only 30 amps, so the intent is to keep the well pump, furnace, fridge and lights on, not replace the entire electrical service. I actually did this part myself and it was simple.

 

[PILOON]

I no longer hire out but folks often ask me to do some odd jobs or otherwise assist.
My standard reply is,how about a bottle of wine? The quality/vintage tells me how much they appreciated me, LOL.

Last year I monitored the complete construction of a high priced home as the owners both worked.
Even though we'd agreed in advance on an hourly rate (like 1-2 visits a day) when the job was over and done with rather than add up hours I simply said, 'I'll leave it to your discretion'.
They handed me a prepaid dinner for 2 at a top restaurent and a $1000. in cash!
And we are still great friends!

I'll add that I did years of renovations and built many houses so I was not naïve to construction so actually I was merely assuring that he was not being screwed. Fact was he had really found top notch tradesmen, and all of which I became quite friendly with.
One piece of advice I gave him was that he pay all materials, thus saving markup profits, and the labor in cash.
All the crews he found had been burned by revenuers. Some stories were absolutely incredible.
One tradesman, an Italian tiler was actually a certified engineer that just liked to work with his hands. He did the most fantastic tile job I've seen. He also had tools that boggled the mind, the best latest devices and costliest out there.

His only mistake was to get the framers to erect his glassed in sun deck. They simply were not 'finishing' guys and I interfered with their claimed hours* for that job. Besides the results left somethin to desire.
* fact was I'd have done it for 50% less time.

 

[ultrarunner]

I've got a closet of booze... all gifts that I strategically re-gift or use for parties...

Crown Royal seems to go over very well here... I never tasted it but the guys seem happy enough... also the 1.75l Grey Goose Vodka... re-gifted one of those bottles and the guys wife said anytime I need help he should help me... that was a twofer...

If you can make the spouse happy... you are good as gold!

Gift Cards... not so much... anybody need and Block Buster of Circuit City gift cards?

 

[Industrial Toys]

Just not the Maple Crown Royal! How awful! Someone gave me a bottle of that! I think I returned it to the LCBO.

 

[Diggin It]

I mentioned before I hired a painter from an Ad at the grocery store, $15.00/hour.

He came to look at my job, stroked his beard and said, "looks like a three thousand dollar job", or something like that.

No, I said, I buy the paint, and material and you get started painting at $15.00/hr.

And 200 hours later ....

 

[goeduck]

You got your brother to thank for that.

My mechanic lives across the street from us. If he works on a car at his house, he only accepts cash and no receipts. Just charges me labor and no mark-up on parts. If there's something he can't do at home, he'll take it to his shop. Then it's full rate on labor, mark-up on parts, receipts, etc... as that's his business.

Work at his shop has warranty, etc...

Work at his house, no warranty, although he puts the parts in my name, so the part is warranted, just not the work.

Sounds like illegal tax evasion. Green cash deals are usually that.