A friend of mine (really is) thinks they have 500 bitcoins currently in paper storage. What is the best way forward to sell the bitcoins for USD and declare for tax purposes etc?. I've read online that if he was to store with such as coinbase, there are limits to how much he can sell in any one day.
Wow, your friends must have been one of the first people to invest in bitcoin becaues 500 is currently like 40 blocks worth of bitcoin.
To answer his question though, if he wants to get the best rates, then go through a big exchange. I suggest either Bitstamp or Kraken depending on where your friend lives, but it will mean that you have to supply all your docs to the exchange. If you want a private trade you could go through localbitcoins, there are a lot of traders dealing with thousands of bitcoin on a weekly basis on there. However you should expect the tax department to be on you for capital gains taxes, so depending on where you live you should probably fill out the forms though it is improbable that they can track you down especially if you are doing p2p trades.
