Can I sell my house to a friend and buy it back.

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Thought of another question.
I've lived in my house for 3 years (California), plan on moving to another house soon and was thinking about renting this one out. If I rent it out longer than 3 years then I have to pay tax on 400k current price capital gains since I bought the house dirt cheap from my grandparents. Would there be any legal issues if I was to sell my house to my sister-in-law for $100 bucks then rebuy it back to avoid paing the taxes on the big gain i've had so far?
Thanks,
Mike