US citizen with PR card - Mortgage interest as a deduction

QUESTION: I am a US citizen who has been living and working in Canada for
the last 12 years as a landed immigrant. I have been filing both US and
Canadian taxes each of these 12 years. I would like to know whether I can
still contribute to a US IRA account that was establish prior to me coming
to canada. Would this be considered a tax haven avoidance measure by
revenue canada?

david i ingram replies:

You can / may contribute to an IRA but there is no reason to do so and it
would be a disadvantage in the future. You would NOT get a tax deduction
and would have to pay tax in the future for a traditional IRA and the
internal earnings of a ROTH would be taxable in Canada.

Paying down your Canadian mortgage tp avoid non-deductible interest would
make more sense. Goto and read the November 2001 newsletter in
the top left box for more information.

Also, take out your Canadian citizenship. It will not take away anything
from your US situation and make life in Canada easier.

you can find out the process and start it at:


Trackback URL for this entry:

No trackback comments for this entry.