Commonwealth Income & Growth Fund VI (CIGF6) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2014
Document and Entity Information:	'
Entity Registrant Name	'COMMONWEALTH INCOME & GROWTH FUND VI
Document Type	'10-Q
Document Period End Date	31-Mar-14
Amendment Flag	'false
Entity Central Index Key	'0001351901
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	1,795,857
Entity Public Float	$0
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'Yes
Entity Well-known Seasoned Issuer	'Yes
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q1

Commonwealth_Income_Growth_Fun

Commonwealth Income & Growth Fund VI - Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Cash and cash equivalents	$700,166	$29,493
Lease income receivable, net of reserve of approximately $42,000 at March 31, 2014 and December 31, 2013	499,367	302,375
Accounts receivable - Affiliates	104,589	428,786
Other receivables	4,871	2,775
Prepaid expenses	3,342	1,000
Current Assets	1,312,335	764,429
Net Investment in Finance Leases	92,871	98,098
Equipment, at cost	14,652,031	15,890,079
Accumulated depreciation	-11,019,761	-11,559,623
Technology equipment, net	3,632,270	4,330,456
Equipment acquisition costs and deferred expenses, net of accumulated amortization of approximately $156,000 and $186,000 at March 31, 2014 and December 31, 2013, respectively	102,404	115,385
Total Assets	5,139,880	5,308,368
Accounts payable	105,254	97,794
Accounts Payable - Affiliate	123,328	65,555
Other accrued expenses	772,999	517,521
Unearned lease income	120,303	103,075
Notes payable	515,318	173,876
Total Liabilities	1,637,202	957,821
General Partner	1,000	1,000
Limited Partners	3,501,678	4,349,547
Total Partners' Capital	3,502,678	4,350,547
Total Liabilities and Partners' Capital	$5,139,880	$5,308,368

Commonwealth_Income_Growth_Fun1

Commonwealth Income & Growth Fund VI - Statement of Operations (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenue	'	'
Lease	$976,760	$1,254,189
Interest and other	16,548	14,591
(Loss) gain on sale of equipment	-43,374	22,500
Total revenue	949,934	1,291,280
Operating, excluding legal, depreciation	233,537	298,679
Equipment management fee, General Partner	48,969	67,413
Interest	2,476	3,120
Depreciation	591,166	1,095,854
Amortization of equipment acquisition costs and deferred expenses	21,596	42,905
Total expenses	897,744	1,507,971
Net Income (loss)	52,190	-216,691
Net income (loss) allocated to Limited Partners	$43,210	($225,672)
Net income (loss) per equivalent Limited Partnership unit	$0.02	($0.13)
Weighted average number of equivalent limited partnership units outstanding during the period	1,796,041	1,799,217

Commonwealth_Income_Growth_Fun2

Commonwealth Income & Growth Fund VI - Condensed Statement of Shareholders' Equity (USD $)	General Partners	Limited Partners	Total
Partners' Capital at Dec. 31, 2013	$1,000	$4,349,547	$4,350,547
Partners' Capital Account, Units at Dec. 31, 2013	50	1,796,107	1,796,157
Net Income (loss)	8,980	43,210	52,190
Partners' Capital Account, Redemptions	0	-2,080	-2,080
Partners' Capital Account, Units, Redeemed	0	-300	-300
Distributions to Partners	-8,980	-888,999	-897,979
Partners' Capital at Mar. 31, 2014	$1,000	$3,501,678	$3,502,678
Partners' Capital Account, Units at Mar. 31, 2014	50	1,795,807	1,795,857

Commonwealth_Income_Growth_Fun3

Commonwealth Income & Growth Fund VI - Condensed Statement of Cash Flow (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement of Cash Flows	'	'
Net cash provided by operating activities	$539,909	$821,959
Capital expenditures	-24,373	-223,599
Equipment acquisition fees paid to General Partner	-3,826	-8,656
Payments received from finance leases	6,537	0
Net proceeds from the sale of equipment	159,294	28,643
Net cash provided by (used in) investing activities	137,632	-203,612
Redemptions	-2,080	-39,762
Distributions to partners	-897,979	-898,071
Debt placement fees	-4,788	0
Net cash used in financing activities	-6,868	-937,833
Net increase (decrease) in cash and cash equivalents	670,673	-319,486
Cash and cash equivalents beginning of period	29,493	860,982
Cash and cash equivalents end of period	$700,166	$541,496

Accounting_Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2014
Notes	'
Accounting Policies	'
	1. Business
	Commonwealth Income & Growth Fund VI (the “Partnership”) is a limited partnership organized in the Commonwealth of Pennsylvania on January 6, 2006. The Partnership offered for sale up to 2,500,000 units of the limited partnership at the purchase price of $20 per unit (the “offering”). The Partnership reached the minimum amount in escrow and commenced operations on May 10, 2007. The offering terminated on March 6, 2009 with 1,810,311 units sold for a total of approximately $$36,000,000 in limited partner contributions.
	The Partnership uses the proceeds of the offering to acquire, own and lease various types of information technology equipment and other similar capital equipment, which will be leased primarily to U.S. corporations and institutions. Commonwealth Capital Corp. (“CCC”), on behalf of the Partnership and other affiliated partnerships, acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various partnerships that it manages based on certain risk factors.
	The Partnership’s General Partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly owned subsidiary of CCC. CCC is a member of the Investment Program Association (IPA), Financial Planning Association (FPA), and the Equipment Leasing and Finance Association (ELFA). Approximately ten years after the commencement of operations, the Partnership intends to sell or otherwise dispose of all of its equipment, make final distributions to partners, and to dissolve. Unless sooner terminated or extended pursuant to the terms of its Limited Partnership Agreement, the Partnership will continue until December 31, 2018.
	2. Summary of Significant Accounting Policies
	Basis of Presentation
	The financial information presented as of any date other than December 31, 2013 has been prepared from the books and records without audit.  Financial information as of December 31, 2013 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements.  In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included.  For further information regarding the Partnership’s accounting policies, refer to the financial statements and related notes included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013.  Operating results for the three months ended March 31, 2014 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2014.
	Disclosure of Fair Value of Financial Instruments
	Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret marker data and develop estimated fair value. Cash, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate the fair values as of March 31, 2014 and December 31, 2013 due to the immediate or short-term nature of these financial instruments.
	The Partnership’s long-term debt consists of notes payable, which are secured by specific computer equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at March 31, 2014 and December 31, 2013 approximates the carrying value of these instruments, due to the interest rates on this debt approximating current market values. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value.
	Cash and cash equivalents
	We consider cash and cash equivalents to be cash on hand and highly liquid investments with the original maturity dates of 90 days or less.
	At March 31, 2014, cash was held in two bank accounts maintained at one financial institution with an aggregate balance of approximately $701,000. Bank accounts are federally insured up to $250,000 by the FDIC.  At March 31, 2014, the total cash bank balance was as follows:
		Balance at March 31,			2014
		Total bank balance		$	701,000
		FDIC insured			-250,000
		Uninsured amount		$	451,000
	The Partnership believes it mitigates the risk of holding uninsured deposits by only depositing funds with major financial institutions. The Partnership has not experienced any losses in our accounts, and believes it is not exposed to any significant credit risk. The amounts in such accounts will fluctuate throughout 2014 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners.
	Recent Accounting Pronouncements
	In April 2014, the FASB issued ASU No. 2014-08 (“ASU Updated 2014-08”), Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU provides guidance on the change in criteria established to enhance the presentation of reporting discontinued operations. The guidance is effective for annual financial statements beginning on or after December 15, 2014 that report discontinued operations or disposals of components of an entity. The Partnership is currently evaluating the effect that this ASU will have on its financial statements.
	In March 2014, the FASB issued ASU No. 2014-06 (“ASU Updated 2014-06”), Technical Corrections and Improvements Related to Glossary Terms. This ASU provides updates to the FASB Accounting Standards Codification established in September 2009 as the source of authoritative U.S. GAAP recognized by the FASB. The update is effectively immediately upon issuance. The Partnership adopted this ASU during the first quarter of 2014 and there was no material impact on its financial statements.
	In April 2013, the FASB issued ASU No. 2013-07 (“ASU Updated 2013-07”), Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. This ASU provides guidance on the application of the liquidation basis of accounting as provided by U.S. GAAP. The guidance will improve the consistency of financial reporting for liquidating entities. The guidance in this ASU is effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Partnership is currently evaluating the effect that this ASU will have on its financial statements during the liquidation phase of its life cycle.
	3. Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (“Equipment”)
	The Partnership is the lessor of equipment under leases with periods that generally will range from 12 to 48 months.  In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee.
	Remarketing fees will be paid to the leasing companies from which the Partnership purchases leases.  These are fees that are earned by the leasing companies when the initial terms of the lease have been met.  The General Partner believes that this strategy adds value since it entices the leasing company to remain actively involved with the lessees for potential extensions, remarketing or sale of equipment.  This strategy is designed to minimize any conflicts the leasing company may have with a new lessee and may assist in maximizing overall portfolio performance.  The remarketing fee is tied into lease performance thresholds and is a factor in the negotiation of the fee.  Remarketing fees incurred in connection with lease extensions are accounted for as operating costs.  Remarketing fees incurred in connection with the sale of equipment are included in the gain or loss calculations.  For the three months ended March 31, 2014 and 2013, remarketing fees were incurred in the amounts of approximately $2,000 and 49,000. For the three months ended March 31, 2014 and 2013, approximately $0 and $0 of remarketing fees were paid with cash or netted against receivables due from such parties, respectively.
	Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Gains from lease termination included in lease revenue for the three months ended March 31, 2014 was approximately $185,000.  For the three months ended March 31, 2013, the Partnership recognized $0 from the termination of leases.
	CCC, on behalf of the Partnership and other affiliated partnerships, acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue through a transfer or sale and assignment to the various partnerships based on certain risk factors.
	The Partnership’s share of the cost of the equipment in which it participates with other partnerships at March 31, 2014 was approximately $6,003,000 and is included in the fixed assets on its balance sheet.  The Partnership’s share of the outstanding debt associated with this equipment at March 31, 2014 was approximately  $515,000 and is included in the Partnership’s notes payable on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at March 31, 2014was approximately $13,210,000. The total outstanding debt related to the equipment shared by the Partnership at March 31, 2014 was approximately $1,575,000.
	The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2013 was approximately $6,066,000 and is included in the fixed assets on its balance sheet.  The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2013 was approximately  $174,000 and is included in the Partnership’s notes payable on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at December 31, 2013 was approximately $13,646,000. The total outstanding debt related to the equipment shared by the Partnership at December 31, 2013 was approximately $455,000.
	As the Partnership and the other programs managed by the General Partner continue to acquire new equipment for the portfolio, opportunities for shared participation are expected to continue. Sharing in the acquisition of a lease portfolio gives the fund an opportunity to acquire additional assets and revenue streams, while allowing the fund to remain diversified and reducing its overall risk with respect to one portfolio.
	The following is a schedule of future minimum rentals on noncancellable operating leases at March 31, 2014:
			Amount
	Year Ended December 31, 2014			1,632,000
	Year Ended December 31, 2015			887,000
	Year Ended December 31, 2016			222,000
	Year Ended December 31, 2017			13,000
			$	2,754,000
	The following lists the components of the net investment in direct financing leases at March 31, 2014:
	Total minimum lease payments to be received		$	92,000
	Estimated residual value of leased equipment (unguaranteed)			11,000
	Initial direct costs	$		3,000
	Less: unearned income			-13,000
	Net investment in direct finance leases		$	93,000
	Our finance lease customers operate in various industries, and we have no significant customer concentration in any one industry. We assess credit risk for all of our customers, including those that lease under finance leases. This credit risk is assessed using an internally developed model which incorporates credits scores from third party providers and our own customer risk ratings and is periodically reviewed. Our internal ratings are weighted based on the industry that the customer operates in.  Factors taken into consideration when assessing risk includes both general and industry specific qualitative and quantitative metrics.  We separately take in to consideration payment history, open lawsuits, liens and judgments.  Typically, we will not extend credit to a company that has been in business for less than 5 years or that has filed for bankruptcy within the same period. Our internally based model may classify a company as high risk based on our analysis of their audited financial statements. Additional considerations of high risk may include history of late payments, open lawsuits and liens or judgments. In an effort to mitigate risk, we typically require deposits from those in this category. The following table presents the credit risk profile, by creditworthiness category, of our finance lease receivables at March 31, 2014:
	Risk Level		Percent of Total
	Low			0	%
	Moderate-Low			100	%
	Moderate			0	%
	Moderate-High			0	%
	High			0	%
	Net finance lease receivable			100	%
	As of March 31, 2014, we determined that we did not have a need for an allowance for uncollectible accounts associated with any of our finance leases, as the customer payment histories with us, associated with these leases, has been positive, with no late payments.
	The following is a schedule of future minimum rentals on noncancelable direct financing leases at March 31, 2014:
			Amount
	Nine months ended December 31, 2014			20,000
	Year ended December 31, 2015			26,000
	Year ended December 31, 2016			26,000
	Year ended December 31, 2017			20,000
			$	92,000
	4. Related Party Transactions
	As of March 31, 2014 and 2013, the Company’s related party receivables and payables are short term, unsecured and non-interest bearing.
	Three months ended March 31,		2014					2013
	Reimbursable expenses
Reimbursable expenses, which are charged to the partnership by CCC in connection with the administration and operation of the Partnership, are allocated to the Partnership based upon several factors including, but not limited to, the number of investors, compliance issues, and the number of existing leases.  For the three months ended March 31, 2014 and 2013, the Partnership was charged approximately $74,000 and $130,000 in other LP expense, respectively		$	199,000				$	262,000
Equipment acquisition fee
The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchases as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract.		$	4,000				$	9,000
Equipment liquidation fee
Also referred to as a "resale fee." With respect to each item of equipment sold by the general partner, we will pay a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price of the equipment. The payment of this fee is subordinated to the receipt by the limited partners of (i) a return of their capital contributions and a 10% per annum cumulative return, compounded daily, on adjusted capital contributions and (ii) the net disposition proceeds from such sale in accordance with the partnership agreement. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, uses its business judgment to determine if a given sales commission is competitive, reasonable and customary. Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. The amount of such fees will depend upon the sale price of equipment sold. Sale prices will vary depending upon the type, age and condition of equipment sold. The shorter the terms of our leases, the more often we may sell equipment, which will increase liquidation fees we receive.					$	5,000			$	1,000
Debt placement fee
As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. We do not intend to use more than 30% leverage overall in our portfolio. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage.				$	5,000					$		0
Equipment management fee
We pay our general partner a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of this fee we will receive.		$				49,000			$		67,000

Notes_Payable

Notes Payable	3 Months Ended
	Mar. 31, 2014
Notes	'
Notes Payable	'
	5. Notes Payable
	Notes payable consisted of the following approximate amounts:
		31-Mar-14		31-Dec-13
	Installment note payable to bank; with final payment in 2014		0		52,000
	Installment notes payable to bank; with final payment in 2015		60,000		69,000
	Installment note payable to bank; with final payment in 2016		455,000		53,000
		$	515,000	$	174,000
	During January 2014, notes payable of approximately $52,000 was satisfied as the result of an early buy-out. The note was originally scheduled to mature in July 2014.
	Subsequent to March 31, 2014, the Partnership entered into installment notes payable to the bank of approximately $97,000 in connection with the purchase of equipment.
	The notes are secured by specific equipment with a carrying value of approximately $705,000 and are nonrecourse liabilities of the Partnership.  .  As such, the notes do not contain any debt covenants with which we must comply on either an annual or quarterly basis.  Aggregate maturities of notes payable for each of the periods subsequent to March 31, 2014 are as follows:
		Amount
	Nine months ended December 31, 2014		164,000
	Year ended December 31, 2015		210,000
	Year ended December 31, 2016		141,000
		$	515,000

6_Supplemental_Cash_Flow_Infor

6. Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2014
Notes	'
6. Supplemental Cash Flow Information	'
	6. Supplemental Cash Flow Information
	Other noncash activities included in the determination of net loss are as follows:
	Three months ended March 31,	2014		2013
	Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank	$	137,000	$	72,000
	No interest or principal on notes payable was paid by the Partnership because direct payment was made by lessee to the bank in lieu of collection of lease income and payment of interest and principal by the Partnership.
	Noncash investing and financing activities include the following:
	Three months ended March 31,	2014		2013
	Debt assumed in connection with purchase of technology equipment	$	479,000	$	0
	Accrual for distributions to partners paid in April 2014	$	898,000	$	0
	During the three months ended March 31, 2014 and 2013, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $52,000 and $106,000, respectively.
	During the three months ended March 31, 2013, the Partnership wrote-off fully reserved lease income receivable of approximately $323,000.
	During the three months ended March 31, 2014, the Partnership wrote-off fully depreciated equipment of approximately $403,000.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Notes	'
Commitments and Contingencies	'
	7. Commitments and Contingencies
	Allied Health Care Services
	As previously disclosed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2013, management wrote off the fully reserved accounts receivable and fully impaired assets related to the lease to Allied Health Care Services, Inc. (“Allied”), due to the bankruptcy of Allied and the criminal conviction of its founder for fraud. There have been no material changes in the status of Allied’s bankruptcy or in the likelihood of recovering available assets since the date of the Partnership’s annual report. The deadline for the bankruptcy trustee to pursue adversary claims against certain creditors has expired, including extensions. The bankruptcy trustee cannot seek to claim the Partnership's payments received from Allied, therefore the Partnership has no exposure to such potential claims. Commonwealth continues to pursue all of our rights against both Allied and Mr. Schwartz to recover any available assets to the greatest extent possible.
	SEC Settlement
	In August 2012 the staff of the U.S. Securities and Exchange Commission raised a question with Commonwealth Capital Corp. (“Commonwealth”), the sponsor of our funds, regarding the interpretation and application of the term “control person.” The term affected the scope of the reimbursement to Commonwealth of certain expenses incurred for the funds. The staff was concerned that some investors may not have understood the meaning and methodology used by the funds. Commonwealth worked with the staff to assure that our disclosure was clarified. Commonwealth Income and Growth Fund, Inc., the General Partner of the funds, entered into a settlement with the SEC in September 2013 of approximately $200,000 that is being allocated to several of the Funds. The Partnership’s portion of the settlement is approximately $40,000, which was recorded as a reduction in expenses in the condensed statement of operations during the year ended December 31, 2013 in accordance with the accounting guidance in FASB ASC 605-50. As of March 31, 2014, the balance of this receivable is approximately $20,000.
	FINRA Review
	On May 3, 2013, the FINRA Department of Enforcement filed a complaint naming CCSC and the owner of the firm, Kimberly Springsteen-Abbott, as respondents. The complaint alleges that Ms. Springsteen-Abbott approved misallocation of certain expenses to the funds. On October 22, 2013, FINRA filed an amended complaint that dropped the allegations against CCSC and reduced the scope of the allegations against Kimberly Springsteen-Abbott. Management believes that the expenses at issue include amounts that were proper and were properly allocated to funds, and expenses that had been allocated in error but were previously adjusted and repaid to the affected funds when they were identified. CCSC and Ms. Springsteen-Abbott deny the allegations and intend to vigorously defend the proceeding. Management believes that resolution of the charge will not result in any material adverse financial impact on the Funds, but no assurance can be provided until the proceeding is resolved.

Accounting_Policies_Business_P

Accounting Policies: Business (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Business	'
	1. Business
	Commonwealth Income & Growth Fund VI (the “Partnership”) is a limited partnership organized in the Commonwealth of Pennsylvania on January 6, 2006. The Partnership offered for sale up to 2,500,000 units of the limited partnership at the purchase price of $20 per unit (the “offering”). The Partnership reached the minimum amount in escrow and commenced operations on May 10, 2007. The offering terminated on March 6, 2009 with 1,810,311 units sold for a total of approximately $$36,000,000 in limited partner contributions.
	The Partnership uses the proceeds of the offering to acquire, own and lease various types of information technology equipment and other similar capital equipment, which will be leased primarily to U.S. corporations and institutions. Commonwealth Capital Corp. (“CCC”), on behalf of the Partnership and other affiliated partnerships, acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various partnerships that it manages based on certain risk factors.
	The Partnership’s General Partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly owned subsidiary of CCC. CCC is a member of the Investment Program Association (IPA), Financial Planning Association (FPA), and the Equipment Leasing and Finance Association (ELFA). Approximately ten years after the commencement of operations, the Partnership intends to sell or otherwise dispose of all of its equipment, make final distributions to partners, and to dissolve. Unless sooner terminated or extended pursuant to the terms of its Limited Partnership Agreement, the Partnership will continue until December 31, 2018.

Accounting_Policies_Basis_of_P

Accounting Policies: Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Basis of Presentation	'
	Basis of Presentation
	The financial information presented as of any date other than December 31, 2013 has been prepared from the books and records without audit.  Financial information as of December 31, 2013 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements.  In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included.  For further information regarding the Partnership’s accounting policies, refer to the financial statements and related notes included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013.  Operating results for the three months ended March 31, 2014 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2014.

Accounting_Policies_Disclosure

Accounting Policies: Disclosure of Fair Value of Financial Instruments (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Disclosure of Fair Value of Financial Instruments	'
	Disclosure of Fair Value of Financial Instruments
	Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret marker data and develop estimated fair value. Cash, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate the fair values as of March 31, 2014 and December 31, 2013 due to the immediate or short-term nature of these financial instruments.
	The Partnership’s long-term debt consists of notes payable, which are secured by specific computer equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at March 31, 2014 and December 31, 2013 approximates the carrying value of these instruments, due to the interest rates on this debt approximating current market values. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value.

Accounting_Policies_Cash_and_C

Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Cash and Cash Equivalents	'
	Cash and cash equivalents
	We consider cash and cash equivalents to be cash on hand and highly liquid investments with the original maturity dates of 90 days or less.
	At March 31, 2014, cash was held in two bank accounts maintained at one financial institution with an aggregate balance of approximately $701,000. Bank accounts are federally insured up to $250,000 by the FDIC.  At March 31, 2014, the total cash bank balance was as follows:
		Balance at March 31,		2014
		Total bank balance	$	701,000
		FDIC insured		-250,000
		Uninsured amount	$	451,000
	The Partnership believes it mitigates the risk of holding uninsured deposits by only depositing funds with major financial institutions. The Partnership has not experienced any losses in our accounts, and believes it is not exposed to any significant credit risk. The amounts in such accounts will fluctuate throughout 2014 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners.

Accounting_Policies_Recent_Acc

Accounting Policies: Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In April 2014, the FASB issued ASU No. 2014-08 (“ASU Updated 2014-08”), Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU provides guidance on the change in criteria established to enhance the presentation of reporting discontinued operations. The guidance is effective for annual financial statements beginning on or after December 15, 2014 that report discontinued operations or disposals of components of an entity. The Partnership is currently evaluating the effect that this ASU will have on its financial statements.
	In March 2014, the FASB issued ASU No. 2014-06 (“ASU Updated 2014-06”), Technical Corrections and Improvements Related to Glossary Terms. This ASU provides updates to the FASB Accounting Standards Codification established in September 2009 as the source of authoritative U.S. GAAP recognized by the FASB. The update is effectively immediately upon issuance. The Partnership adopted this ASU during the first quarter of 2014 and there was no material impact on its financial statements.
	In April 2013, the FASB issued ASU No. 2013-07 (“ASU Updated 2013-07”), Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. This ASU provides guidance on the application of the liquidation basis of accounting as provided by U.S. GAAP. The guidance will improve the consistency of financial reporting for liquidating entities. The guidance in this ASU is effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Partnership is currently evaluating the effect that this ASU will have on its financial statements during the liquidation phase of its life cycle.

Accounting_Policies_3_Equipmen

Accounting Policies: 3. ("Equipment") (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
3. ("Equipment")	'
	3. Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (“Equipment”)
	The Partnership is the lessor of equipment under leases with periods that generally will range from 12 to 48 months.  In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee.
	Remarketing fees will be paid to the leasing companies from which the Partnership purchases leases.  These are fees that are earned by the leasing companies when the initial terms of the lease have been met.  The General Partner believes that this strategy adds value since it entices the leasing company to remain actively involved with the lessees for potential extensions, remarketing or sale of equipment.  This strategy is designed to minimize any conflicts the leasing company may have with a new lessee and may assist in maximizing overall portfolio performance.  The remarketing fee is tied into lease performance thresholds and is a factor in the negotiation of the fee.  Remarketing fees incurred in connection with lease extensions are accounted for as operating costs.  Remarketing fees incurred in connection with the sale of equipment are included in the gain or loss calculations.  For the three months ended March 31, 2014 and 2013, remarketing fees were incurred in the amounts of approximately $2,000 and 49,000. For the three months ended March 31, 2014 and 2013, approximately $0 and $0 of remarketing fees were paid with cash or netted against receivables due from such parties, respectively.
	Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Gains from lease termination included in lease revenue for the three months ended March 31, 2014 was approximately $185,000.  For the three months ended March 31, 2013, the Partnership recognized $0 from the termination of leases.
	CCC, on behalf of the Partnership and other affiliated partnerships, acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue through a transfer or sale and assignment to the various partnerships based on certain risk factors.
	The Partnership’s share of the cost of the equipment in which it participates with other partnerships at March 31, 2014 was approximately $6,003,000 and is included in the fixed assets on its balance sheet.  The Partnership’s share of the outstanding debt associated with this equipment at March 31, 2014 was approximately  $515,000 and is included in the Partnership’s notes payable on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at March 31, 2014was approximately $13,210,000. The total outstanding debt related to the equipment shared by the Partnership at March 31, 2014 was approximately $1,575,000.
	The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2013 was approximately $6,066,000 and is included in the fixed assets on its balance sheet.  The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2013 was approximately  $174,000 and is included in the Partnership’s notes payable on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at December 31, 2013 was approximately $13,646,000. The total outstanding debt related to the equipment shared by the Partnership at December 31, 2013 was approximately $455,000.
	As the Partnership and the other programs managed by the General Partner continue to acquire new equipment for the portfolio, opportunities for shared participation are expected to continue. Sharing in the acquisition of a lease portfolio gives the fund an opportunity to acquire additional assets and revenue streams, while allowing the fund to remain diversified and reducing its overall risk with respect to one portfolio.
	The following is a schedule of future minimum rentals on noncancellable operating leases at March 31, 2014:
			Amount
	Year Ended December 31, 2014			1,632,000
	Year Ended December 31, 2015			887,000
	Year Ended December 31, 2016			222,000
	Year Ended December 31, 2017			13,000
			$	2,754,000
	The following lists the components of the net investment in direct financing leases at March 31, 2014:
	Total minimum lease payments to be received		$	92,000
	Estimated residual value of leased equipment (unguaranteed)			11,000
	Initial direct costs	$		3,000
	Less: unearned income			-13,000
	Net investment in direct finance leases		$	93,000
	Our finance lease customers operate in various industries, and we have no significant customer concentration in any one industry. We assess credit risk for all of our customers, including those that lease under finance leases. This credit risk is assessed using an internally developed model which incorporates credits scores from third party providers and our own customer risk ratings and is periodically reviewed. Our internal ratings are weighted based on the industry that the customer operates in.  Factors taken into consideration when assessing risk includes both general and industry specific qualitative and quantitative metrics.  We separately take in to consideration payment history, open lawsuits, liens and judgments.  Typically, we will not extend credit to a company that has been in business for less than 5 years or that has filed for bankruptcy within the same period. Our internally based model may classify a company as high risk based on our analysis of their audited financial statements. Additional considerations of high risk may include history of late payments, open lawsuits and liens or judgments. In an effort to mitigate risk, we typically require deposits from those in this category. The following table presents the credit risk profile, by creditworthiness category, of our finance lease receivables at March 31, 2014:
	Risk Level		Percent of Total
	Low			0	%
	Moderate-Low			100	%
	Moderate			0	%
	Moderate-High			0	%
	High			0	%
	Net finance lease receivable			100	%
	As of March 31, 2014, we determined that we did not have a need for an allowance for uncollectible accounts associated with any of our finance leases, as the customer payment histories with us, associated with these leases, has been positive, with no late payments.
	The following is a schedule of future minimum rentals on noncancelable direct financing leases at March 31, 2014:
			Amount
	Nine months ended December 31, 2014			20,000
	Year ended December 31, 2015			26,000
	Year ended December 31, 2016			26,000
	Year ended December 31, 2017			20,000
			$	92,000

Accounting_Policies_Cash_and_C1

Accounting Policies: Cash and Cash Equivalents: Schedule of Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Cash and Cash Equivalents	'
		Balance at March 31,		2014
		Total bank balance	$	701,000
		FDIC insured		-250,000
		Uninsured amount	$	451,000

Accounting_Policies_3_Equipmen1

Accounting Policies: 3. ("Equipment"): Future Operating Lease Revenue (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Future Operating Lease Revenue	'
		Amount
	Year Ended December 31, 2014		1,632,000
	Year Ended December 31, 2015		887,000
	Year Ended December 31, 2016		222,000
	Year Ended December 31, 2017		13,000
		$	2,754,000

Accounting_Policies_3_Equipmen2

Accounting Policies: 3. ("Equipment"): Components of The Net Investment in Direct Financing Leases At March 31, 2014 (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Components of The Net Investment in Direct Financing Leases At March 31, 2014:	'
	Total minimum lease payments to be received		$	92,000
	Estimated residual value of leased equipment (unguaranteed)			11,000
	Initial direct costs	$		3,000
	Less: unearned income			-13,000
	Net investment in direct finance leases		$	93,000

Accounting_Policies_3_Equipmen3

Accounting Policies: 3. ("Equipment"): Finance Lease Risk Level (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Finance Lease Risk Level	'
	Risk Level	Percent of Total
	Low		0	%
	Moderate-Low		100	%
	Moderate		0	%
	Moderate-High		0	%
	High		0	%
	Net finance lease receivable		100	%

Accounting_Policies_3_Equipmen4

Accounting Policies: 3. ("Equipment"): Schedule of Future Rentals On Direct Financing Leases At March 31, 2014 (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Future Rentals On Direct Financing Leases At March 31, 2014:	'
	The following is a schedule of future minimum rentals on noncancelable direct financing leases at March 31, 2014:
		Amount
	Nine months ended December 31, 2014		20,000
	Year ended December 31, 2015		26,000
	Year ended December 31, 2016		26,000
	Year ended December 31, 2017		20,000
		$	92,000

Notes_Payable_Schedule_of_Debt

Notes Payable: Schedule of Debt (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Debt	'
		31-Mar-14		31-Dec-13
	Installment note payable to bank; with final payment in 2014		0		52,000
	Installment notes payable to bank; with final payment in 2015		60,000		69,000
	Installment note payable to bank; with final payment in 2016		455,000		53,000
		$	515,000	$	174,000

Notes_Payable_Schedule_of_Matu

Notes Payable: Schedule of Maturities of Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Maturities of Long-term Debt	'
		Amount
	Nine months ended December 31, 2014		164,000
	Year ended December 31, 2015		210,000
	Year ended December 31, 2016		141,000
		$	515,000

Accounting_Policies_Business_D

Accounting Policies: Business (Details)	Mar. 31, 2014
Details	'
Partners Capital Contributed	36,000,000

Accounting_Policies_Cash_and_C2

Accounting Policies: Cash and Cash Equivalents: Schedule of Cash and Cash Equivalents (Details) (USD $)	Mar. 31, 2014
Details	'
Cash	$701,000
Cash, FDIC Insured Amount	250,000
Cash, Uninsured Amount	$451,000

Accounting_Policies_3_Equipmen5

Accounting Policies: 3. ("Equipment") (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Details	'	'	'
Remarketing Fees Incurred	$2,000	$49,000	'
Remarketing Fees Paid	0	0	'
Gain (Loss) on Contract Termination	185,000	0	'
Equipment Shared	6,003,000	'	6,066,000
Debt Shared	515,000	'	174,000
Total Shared Equipment	13,210,000	'	13,646,000
Outstanding Debt Total	$1,575,000	'	$455,000

Accounting_Policies_3_Equipmen6

Accounting Policies: 3. ("Equipment"): Future Operating Lease Revenue (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Details	'
Future Lease Payments Through 2014	$1,632,000
Future Lease Payments Through 2015	887,000
Future Lease Payments Through 2016	222,000
Future Lease Payments Through 2017	13,000
Future Lease Payments Total	$2,754,000

Accounting_Policies_3_Equipmen7

Accounting Policies: 3. ("Equipment"): Components of The Net Investment in Direct Financing Leases At March 31, 2014 (Details) (USD $)	Mar. 31, 2014
Details	'
Minimum Lease Payments Finance Leases	$92,000
Residual Value Finance Leases	11,000
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs	3,000
Unearned Income Finance Leases	-13,000
Net Investment in Finance Leases	$93,000

Accounting_Policies_3_Equipmen8

Accounting Policies: 3. ("Equipment"): Finance Lease Risk Level (Details)	Mar. 31, 2014
Details	'
Risk Level Low	0.00%
Risk Level Moderate Low	100.00%
Risk Level Moderate	0.00%
Risk Level Moderate High	0.00%
Risk Level High	0.00%
Total Risk Level	100.00%

Accounting_Policies_3_Equipmen9

Accounting Policies: 3. ("Equipment"): Schedule of Future Rentals On Direct Financing Leases At March 31, 2014 (Details) (USD $)	Mar. 31, 2014
Details	'
Capital Leases, Future Minimum Payments Due, Next Twelve Months	$20,000
Capital Leases, Future Minimum Payments Due in Two Years	26,000
Capital Leases, Future Minimum Payments Due in Three Years	26,000
Capital Leases, Future Minimum Payments Due in Four Years	20,000
Capital Leases, Future Minimum Payments Due	$92,000

5_Related_Party_Transactions_D

5. Related Party Transactions (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Other LP Expenses	$74,000	$130,000
Reimbursable Expenses	199,000	262,000
Equipment Acquisition Fees	4,000	9,000
Equipment liquidation fee	5,000	1,000
Debt placement fees	5,000	0
Equipment Management Fee	$49,000	$67,000

Notes_Payable_Schedule_of_Debt1

Notes Payable: Schedule of Debt (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Details	'	'
Debt Maturity 2014	$0	$52,000
Debt Maturity 2015	60,000	69,000
Long-term Debt, Maturing in Years Two and Three	455,000	53,000
Total Debt Balance	$515,000	$174,000

Notes_Payable_Details

Notes Payable (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Details	'
Debt Satisfied - Early Buy-Out	$52,000
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction	97,000
Carrying Value - Equipment - Notes Payable	$705,000

Notes_Payable_Schedule_of_Matu1

Notes Payable: Schedule of Maturities of Long-term Debt (Details) (USD $)	Mar. 31, 2014
Details	'
Maturity of Debt Through 2014	$164,000
Maturity of Debt Through 2015	210,000
Maturity of Debt Through 2016	141,000
Maturity of Debt Total	$515,000

6_Supplemental_Cash_Flow_Infor1

6. Supplemental Cash Flow Information (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Lease Revenue	$137,000	$72,000
Debt Assumed	479,000	0
Accrual for Distributions	898,000	0
Fully Amortized Fees Written Off	52,000	106,000
Allowance for Doubtful Accounts Receivable, Write-offs	'	323,000
Fully Depreciated Equipment Wrote-Off	$403,000	'

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Details	'	'
SEC Settlement - All Funds	'	$200,000
SEC Settlement - Partnership Portion	40,000	'
Balance - SEC Settlement	$20,000	'