Cash Out refi - then sell?

[Jeremy Clarke]

I'm sure there are many threads about this so if someone could point me to one of them that would be great.

If i have property i can't avoid paying capital gains tax on, is it a loophole to just do a cash out refi and then a few months later sell the property?

For example, let's say i have a home worth $400,000 and owe $200,000 on the loan. Let's say the bank will give me $125,000 on a cashout refi. A few months later i decide to sell the house and then rather than paying capital gains on a $200k profit, i only pay it on $75k.

Thoughts?