Tax loophole

[Mike Migliaccio]

Does anyone know if partnering with a seller of a multi family building could allow for the seller to defer paying capital gains taxes as follows: I partner with the seller by buying in for a fraction of the fair market value. We then take a loan (as the building is currently paid off) which goes to the original owner. The owner then passses the cash from the loan to his heirs as is allowed in annual tax free gifts. I then pay off the loan with the cash flow.