If one is the owner & premium payer of the life insurance premium on a Univ. Life policy, as well as the sales agent and receives a 1099 for commission income (mainly first year commissions), is this commission taxable or can it be deferred should the life insurance policy be sold as a Life Settlement? If not, can the premium be deducted against the commission under these circumstances? (The original policy was a 10 year term that that ended and was recently converted to a permanent Univ. Life product). -Thank you!

Any income that you receive is taxable regardless of how you obtained it. This includes, but is not limited to, any income that you receive as a result of selling yourself an insurance policy.

Any income that you receive is taxable regardless of how you obtained it. This includes, but is not limited to, any income that you receive as a result of selling yourself an insurance policy.

The fact that the commission is paid to you on your own policy is irrelevant. Income is income so taxes are due on the commission for the life insurance policy you sold to yourself, just like any other policy you sold.