Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2409

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7A
Chunk 2409
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 in an amount
equal to the spread at the time of exercise, and will be entitled (subject to the requirement of reasonableness, the provisions of Section
162(m) of the Code and the satisfaction of a tax reporting obligation) to a federal income tax deduction equal to such amount. If the
recipient sells the shares of Common Stock after the specified periods, the gain or loss on the shares’ sale will be long-term capital
gain or loss and will not be entitled to a federal income tax deduction.

Non-statutory Stock Options
and Restricted Stock Awards. Non-statutory stock options and restricted stock awards granted under the 2022 Plan generally have the
following federal income tax consequences.

There
are no tax consequences to the participant or us because of the grant. Upon acquiring the stock, the recipient will recognize taxable
ordinary income equal to the excess, if any, of the stock’s 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