that would be your CV (constant velocity) axle boot on the inner side, kinda hard to tell from the picture. Don't think i have ever seen one completely ripped like that. Probably going to have to replace the entire half shaft cause of dirt and water. unless you want to tear apart, clean thoroughly and reboot. Replacing is a lot easier.
link to taking the axle out.
You can look and see how to do it in the link. took me about 2-3 hours the first time going slow. There are videos also if searched.
http://www.4x4wire.com/toyota/maintenance/cv_axle/
cost of DIY: $70-150 depending on parts
labor is hard to determine depending on shop but $30-$60 an hour
Lots of information on this topic over the years.
__________________
MINE - 97' SR5 manual (Desert Dune Metallic)
HER's - 14' limited (Altitude Black)
Linear Mode
