Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1568

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1568
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 fair market value on the acquisition date over the purchase price. However,
to the extent the stock is subject to “a substantial risk of forfeiture” (as defined in Section 83 of the Internal Revenue
Code of 1986 (the “Code”)), the taxable event will be delayed until the forfeiture provision lapses unless the recipient elects
to be taxed on receipt of the stock by making a Section 83(b) election within 30 days of receipt of the stock. If such an election is
not made, the recipient will generally recognize income as and when the forfeiture provision lapses, and the income recognized will be
based on the stock’s fair market value on such a future date. On that date, the recipient’s holding period for purposes of
determining the long-term or short-term nature of any capital gain or loss recognized on a subsequent disposition of the stock will begin.
If a recipient makes a Section 83(b) election, the recipient will recognize ordinary income equal to the difference between the stock’s
fair market value and the purchase price, if any, as of the date of receipt and the holding period for purposes of characterizing as long-term
or short-term any subsequent gain or loss will begin at the date of receipt.

With respect to employees,
we are generally required to withhold from regular wages or supplemental wage payments an amount based on the ordinary income recognized.
Subject to the requirement of reasonableness, the provisions of Section 162(m) of the Code and the satisfaction of a tax reporting obligation,
we will generally be entitled to a business expense deduction equal to the taxable ordinary income realized by the participant.

Upon disposition of the stock,
the recipient will recognize a capital gain or loss equal to the difference between the selling price and the sum of the amount paid for
such stock plus any amount recognized as ordinary income with respect to the stock. Such gain or loss will be long-term or short-term,
depending on whether the stock has been held for more than one year.

Section 162(m) of the Code
denies a deduction to any publicly held corporation for compensation paid to certain senior executives of our Company (referred to as
a covered employee) in a taxable year to the extent that compensation to such employees exceeds $1,000,000. It is possible that compensation
attributable to awards, when combined with all other types of compensation received by a covered employee from our Company, may cause
this limitation to be exceeded in any particular year.

70

Modification; Amendment;
Termination