Keeping imputed interest from increasing price

[Paul L.]

I have a deal for $135,000 with 0% interest. This is in the form of a promissory note in exchange for the house. The seller is worried about tax liability down the line. Instead of a $135K loan at 0%, could we say something like "seller will take a promissory note for $135K, which includes (imputed interest rate)?" The actual sale price of the house isn't what is important to the parties, the total monies paid is what is important. Would this reduce the seller's tax liability? I realize this effectively reduces the sale price of the house significantly.