Lets say I have max out my contributions in the TFSA account with stock which give me dividends...do the dividends count as deposit money or interest?
Lets say I have max out my contributions in the TFSA account with stock which give me dividends...do the dividends count as deposit money or interest?
They don't count as additional contributions.
The TFSA contribution room is made up of only the following:
- the annual dollar limit;
- the unused contribution room from previous years;
- withdrawals made in previous years.
More information here:
http://taxtips.ca/tfsa.htm
“Simplicity is the ultimate sophistication.”
Hopefully the other posts make it clear that the TFSA contribution room is not changed by dividend payments to the account (or any others such as interest or selling a stock).
I'm curious what you mean by "... or interest"?
Dividend payments are dividend payments. You will want to track these to know how the investments are doing but since the TFSA is tax free, there is nothing to report on your tax return and no reason to think of the dividends as "interest".
Cheers
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