Thanks for your reply.  Maybe I did not make it clear in the question.

1) The owner of the S Corp is a real estate investor.  The assets were transferred to the S Corp.

2) The prior tax preparer just plugged in the balance of the L schedule to Loan from shareholder without talking to the client.  And it has been done for several years already.

3) There was no loan agreement such as interest rate and the pay back term and etc.

That is why I think it should be capital contribution not a loan from shareholder.