What should I do if my total equity is above my contribution room in my TFSA account?

It is important to note that capital gains on your investments or interest earned on your savings do not count as part of your contribution room in your tax-free savings account (TFSA).

The only thing that counts toward your TFSA limit are your contributions. And this could be the challenging part: Calculating how much total room you have, which can easily be achieved by contacting the Canada Revenue Agency (CRA) or logging in your account.

If you are gaining any equity in your TFSA account, it is best to either reinvest those earnings or transfer the money to your savings account or add it to your RRSP.