Coinbase and taxes

So I have a general question about taxes and the use of coinbase. Over the past year I've been doing a small amount of vending on a DNM and have received total payments in the neighborhood of 10k. I was never really able to find a good way to cash out BTC and continued using Coinbase for my needs and direct deposited funds directly into my bank account (stupid me). I've searched around for ways to convert BTC to cash in the best way possible, but an efficient and reasonable solution has eluded me. So my question is what do I do about the unexplained income for upcoming tax season, or do I not report it at all? Any help would be greatly appreciated.


Comments


[1 Points] 180K:

Open a wellsfargo bank account (sorry, first have someone make an LLC for you and open an account in the LLC's name), sell your btc on localbitcoins, take cash deposits. Offer 3% over going exchange rate, you'll sell out in minutes.


[1 Points] rbryanm:

deleted...never intended comments displayed in public searches like google, etc


[1 Points] dankroxel:

I'm knocking on wood pretty hard here.. But back a few years I was one of the first people to receive my butterfly labs asic mining machines. And I was making $500+ a day for well over 3 months. I was selling coin on coinbase and depositing into my bank acc. I made quite a bit of Ching. The irs hasn't came knocking yet. So hopefully this helps..


[1 Points] None:

I just made a thread discussing the idea of selling BTC via Paypal and camouflage it with legitimate eBay Paypal transactions. Report your eBay income and you're best kind!