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TFSA - Share Transfer Out - Possible or not

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Hello,

I wanted to take some money out of my TFSA account, so room for 2014 is higher. I am wondering if both options below are possible or just option #2.

1. I have shares of Company A in the TFSA account.
- Can I transfer the shares into some other account (regular trading account) and increase my TFSA contribution room for 2014 by (# of shares * stock price)?
- Note that I won't be selling the shares yet and may sell the shares in the future. I am assuming that new price and profit/loss will be treated as capital gains/loss.

2. Second option - which I know works.
- Sell the shares of company A and take the money out of TFSA account.
- Buy shares in the company A in another account.
- I am trying to avoid paying two transaction fees.

I have accounts with TD Waterhouse. Would TD permit option 1?

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