Just about any cool, dark dry place will work. I bought some seed potatoes at Wal-mart and they already had some sprouts on them. The ones I planted all had at least one eye but not all had sprouts.
The old folks used to keep the potatoes in barrels and all the little ones always worked themselves to the bottom of the barrel. It was normally kept in the cellar. Once the potatoes were about finished, the little ones left at the bottom of the barrel were the ones planted for the next year.
My first year, I cut them and put them in the closet to let them get a "scab" over where they were cut. I didn't have any that came up. The next year, I just took the bag with me to the field and cut them with my pocket knife right before planting. I had much better results that time and did the same this year. Mine are already peeking through.
