I suspect the reason you are waiting, is that your issue isn't clear. While you can get help here using the tax program (don't know which you are using: Lacerte, ProConnect or ProSeries?), no one here can tell you and your client what they should be doing.

I asked if there were other shareholders, for clarity. You cannot throw around "additional capital" as if it has no impact. Here's the other issue in what/how you asked:

"the loan from shareholder is actually capital contribution since the corporation was set up...if repay the loan from shareholders (actually a returned capital event)?"

You don't seem to know if this is Loan or not. You can't call it APIC and then ask about repayment of the loan. These are not synonyms, and you seem to have a grasp on that, then you mix up the process.

Your taxpayer needs better guidance. I like to use web resources, as well as finding a good mentor. If your taxpayer is a self-guided researcher...

https://smallbusiness.chron.com/shareholder-loan-vs-equity-investment-78974.html

https://www.fundera.com/blog/shareholder-loan

https://www.martindale.com/legal-news/article_boylan-code-llp_2231906.htm

https://www.zenbusiness.com/blog/3-things-you-should-consider-before-lending-money-s-corp/

https://www.journalofaccountancy.com/issues/2004/nov/avoidthetaxtrapwhenrepayingshareholderloans.htm...