how do you pay capital gains taxes on bitcoins when you can buy coins off a different exchange, transfer the coins into your account, and sell?
I would guess most don't.
However moving BTC between exchanges has no effect on capital gains.
If you buy a BTC @ $100 and sell a BTC @ $250 you have a $150 capital gain. The withdrawing or depositing of coins on an exchange isn't a taxable event. Similarly people transfer stocks and cash balances between brokerage accounts all the time.
a lot of guys buy lower, usually lower than bitstamp price.. and then they sell on mtgox, probably at or around their spot price.. wouldn't they have to report this with the IRS? that would be a huge mess, wouldn't it? they'd have to prove their buy/sell price for every exchange...