Commonwealth Income & Growth Fund VI (CIGF6) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Aug. 12, 2015
Document and Entity Information:
Entity Registrant Name	COMMONWEALTH INCOME & GROWTH FUND VI
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Trading Symbol	cigf6
Amendment Flag	false
Entity Central Index Key	1,351,901
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		1,795,592
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania
Entity Incorporation, Date of Incorporation	Jan. 6, 2006

Balance Sheets (September 30, 2

Balance Sheets (September 30, 2015 unaudited) - USD ($)		Sep. 30, 2015		Dec. 31, 2014
ASSETS
Cash and cash equivalents		$ 65,098		$ 148,748
Lease income receivable, net of reserve	[1]	103,694		145,093
Accounts receivable - Affiliates	[2]	447,404		324,754
Other receivables		22,775	[3]	3,494	[4]
Prepaid expenses		4,161		2,543
Current Assets		643,132		624,632
Net Investment in Finance Leases		112,506		141,327
Equipment, at cost		10,249,075		12,514,225
Accumulated depreciation		(8,743,564)		(9,853,504)
Technology equipment, net		1,505,511		2,660,721
Equipment acquisition costs and deferred expenses, net		35,796	[5]	72,708	[6]
Total Assets		2,296,945		3,499,388
LIABILITIES
Accounts payable		164,121		125,731
Accounts Payable - Affiliate	[7]	317,159		347,209
Other accrued expenses		10,000		216,014
Unearned lease income		64,313		89,464
Notes payable		449,862		690,550
Total Liabilities		1,005,455		1,468,968
PARTNERS' CAPITAL
General Partner		1,000		1,000
Limited Partners		1,290,490		2,029,420
Total Partners' Capital		1,291,490		2,030,420
Total Liabilities and Partners' Capital		$ 2,296,945		$ 3,499,388
[1]	Net of reserve of approximately $37,000.
[2]	Due from Commonwealth Capital Corp., net.
[3]	Net of reserve of approximately $5,000.
[4]	Net of reserve of approximately $0.
[5]	Net of accumulated amortization of approximately $102,000.
[6]	Net of accumulated amortization of approximately $125,000.
[7]	Payable to CIGF, Inc., net.

Balance Sheets - Parenthetical

Balance Sheets - Parenthetical (September 30, 2015 unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Balance Sheets
Lease income receivable, reserve	$ 37,000	$ 37,000
Other receivable, reserve	5,000	0
Land, Buildings, Equipment and Leasehold Improvements, accumulated depreciation and amortization	$ 102,000	$ 125,000

Statements of Operations (unaud

Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Lease	$ 430,842	$ 695,273	$ 1,541,650	$ 2,460,125
Interest and other	3,463	5,178	10,464	35,631
Gain (loss) on sale of equipment	140,591	109,769	161,059	75,666
Total revenue	574,896	810,220	1,713,173	2,571,422
Expenses
Operating, excluding depreciation and amortization	102,691	162,202	419,664	581,136
Equipment management fee, General Partner	21,769	34,915	77,764	123,591
Interest	4,885	6,333	16,132	15,564
Depreciation	335,760	541,299	1,103,603	1,708,638
Amortization of equipment acquisition costs and deferred expenses	11,001	20,892	39,129	65,306
Bad debt expense			5,000
Total expenses	476,106	765,641	1,661,292	2,494,235
Other income (loss)
Net Income (Loss)	98,790	44,579	51,881	77,187
Net Income (Loss) allocated to Limited Partners	$ 98,191	$ 39,193	$ 44,103	$ 56,631
Net Income (Loss) per equivalent Limited Partnership unit	$ 0.05	$ 0.02	$ 0.02	$ 0.03
Weighted average number of equivalent limited partnership units outstanding during the period	1,792,624	1,795,710	1,794,113	1,795,851

Statements of Partners' Capital

Statements of Partners' Capital (unaudited) - 9 months ended Sep. 30, 2015 - USD ($)	General Partners	Limited Partners	Total
Partners' Capital at Dec. 31, 2014	$ 1,000	$ 2,029,420	$ 2,030,420
Partners' Capital Account, Units at Dec. 31, 2014	50	1,795,542
Net (Loss) Income	$ 7,779	$ 44,102	51,881
Partners' Capital Account, Redemptions		$ (12,943)	(12,943)
Partners' Capital Account, Units, Redeemed		(3,468)
Distributions to Partners	(7,779)	$ (770,089)	(777,868)
Partners' Capital at Sep. 30, 2015	$ 1,000	$ 1,290,490	$ 1,291,490
Partners' Capital Account, Units at Sep. 30, 2015	50	1,792,074

Statements of Cash Flows (unaud

Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Other noncash activities
Net cash provided by operating activities	$ 425,193	$ 1,885,624
Net cash used in investing activities
Capital expenditures	(8,639)	(275,687)
Purchase of finance leases		(73,034)
Payments received from finance leases	34,051	29,238
Equipment acquisition fees paid to General Partner	(1,844)	(27,918)
Net proceeds from the sale of equipment	258,775	278,334
Net cash (used in) investing activities	282,343	(69,067)
Net cash used in financing activities
Redemptions	(12,943)	(3,411)
Debt placement fees paid to General Partner	(375)	(7,568)
Distributions to partners	(777,868)	(1,637,374)
Net cash (used in) financing activities	(791,186)	(1,648,353)
Net (decrease) in cash and cash equivalents	(83,650)	168,204
Cash and cash equivalents beginning of period	148,748	29,493
Cash and cash equivalents end of period	$ 65,098	$ 197,697

Business

Business	9 Months Ended
	Sep. 30, 2015
Notes
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. In an effort to increase cash flow, the General Partner has elected to forgo distributions and allocations of net income owed to it, and suspended limited partner distributions for the fourth quarter of 2015. The General Partner will reassess the funding of limited partner distributions beginning January 1, 2016.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Notes
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The financial information presented as of any date other than December 31, 2014 has been prepared from the books and records without audit. Financial information as of December 31, 2014 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, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2015. 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 market data and develop estimated fair value. Cash and cash equivalents, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of September 30, 2015 and December 31, 2014 due to the short term nature of these financial instruments. The Partnership’s debt consists of notes payable, which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at September 30, 2015 and December 31, 2014 approximates the carrying value of these instruments, due to the interest rates on the debt approximating current market interest rates. 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 equivalents to be highly liquid investments with an original maturity of 90 days or less. At September 30, 2015, cash was held in two accounts maintained at one financial institution with an aggregate balance of approximately $67,000. Bank accounts are federally insured up to $250,000 by the FDIC. At September 30, 2015, the total cash balance was as follows: At September 30, 2015 Balance Total bank balance $ 67,000 FDIC insured (67,000) Uninsured amount $ - The Partnership’s bank balances are fully insured by the FDIC. The Partnership deposits its funds with a Moody's Aaa-Rated banking institution which is one of only three Aaa-Rated banks listed on the New York Stock Exchange. The Partnership has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk. The amount in such accounts will fluctuate throughout 2015 due to many factors, including cash receipts, equipment acquisitions and interest rates. Recent Accounting Pronouncements In August 2015, the FASB issued Accounting Standards Update No. 2015-14, R evenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2015, the FASB issued Accounting Standards Update No. 2015-10, Technical Corrections and Improvements- In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis- In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items . In August 2014, the FASB issued Accounting Standards Update No. 2014 -15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers 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. This was adopted January 1, 2015, however there were no discontinued operations during the nine months ended, September 30, 2015.

Information Technology, Medical

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital Equipment ("Equipment")	9 Months Ended
	Sep. 30, 2015
Notes
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital Equipment ("Equipment")	3. Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital 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 lessee and encourages 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 of approximately $4,000 were incurred for the nine months ended September 30, 2015 and 2014. For the nine months ended September 30, 2015 and 2014, there were no remarketing fees paid with cash or netted against receivables due from such parties. In December 2014, a significant lessee, ALSC, breached its Master Lease Agreement (“MLA”) scheduled to terminate in December 2015 and defaulted on its lease payments for equipment shared by the Partnership and other affiliated Funds. On December 4, 2014, ALSC filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. On April 2, 2015, CCC, on behalf of the Funds, entered into a settlement agreement with the parent company of ALSC for $3,500,000. The Partnership’s share of this settlement was approximately $83,000 of which $69,000 was recorded as a gain on termination of leases in the second quarter of 2015. In addition, the Bankruptcy Court ordered the release of all equipment leased to ALSC under the MLA to the Partnerships. In January 2015, CCC, on behalf of the Funds, entered into a Purchase Agreement for the sale of the equipment to Medshare Technologies (see note 7 - Medshare). 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 nine months ended September 30, 2015 and 2014, was approximately $79,000 and $185,000, respectively. CCC, on behalf of the Partnership and on behalf of other affiliated companies and partnerships (“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 companies based on certain risk factors. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at September 30, 2015 was approximately $5,910,000 and is included in the Partnership’s equipment on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at September 30, 2015 was approximately $13,025,000. The Partnership’s share of the outstanding debt associated with this equipment at September 30, 2015 was approximately $270,000 and is included in the Partnership’s notes payable on its balance sheet. The total outstanding debt related to the equipment shared by the Partnership at September 30, 2015 was approximately $837,000. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2014 was approximately $6,375,000 and is included in the Partnership’s equipment on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at December 31, 2014 was approximately $14,055,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2014 was approximately $471,000 and is included in the Partnership’s notes payable on its balance sheet. The total outstanding debt related to the equipment shared by the Partnership at December 31, 2014 was approximately $1,443,000. 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 non-cancellable operating leases at September 30, 2015: Amount Three months ended December 31, 2015 $ 265,000 Year Ended December 31, 2016 513,000 Year Ended December 31, 2017 106,000 Year Ended December 31, 2018 4,000 $ 888,000 Finance Leases: The following lists the components of the net investment in direct financing leases at September 30, 2015: Amount Total minimum lease payments to be received $ 101,000 Estimated residual value of leased equipment (unguaranteed) 20,000 Less: unearned income (11,000) Initial direct costs finance leases 3,000 Net investment in direct finance leases $ 113,000 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 and their payment history. 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 direct finance lease receivables at September 30, 2015: Risk Level Percent of Total Low -% Moderate-Low -% Moderate -% Moderate-High 100% High -% Net finance lease receivable 100% As of September 30, 2015 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 non-cancelable direct financing leases at September 30, 2015: Amount Three months ended December 31, 2015 $11,000 Year ended December 31, 2016 46,000 Year ended December 31, 2017 39,000 Year ended December 31, 2018 5,000 $101,000

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Notes
Related Party Transactions	4. Related Party Transactions Receivables/Payables As of September 30, 2015, the Partnership’s related party receivables and payables are short term, unsecured, and non-interest bearing. Nine months ended September 30 , 2015 2014 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 nine months ended September 30, 2015 and 2014, the Partnership was charged approximately $196,000 and $219,000 in Other LP expense, respectively. For the nine months ended September 30, 2015, the Fund was allocated approximately $21,000 from CCC and recorded it as a reduction in operating expenses (see Note 7). $ 414,000 $ 567,000 Equipment acquisition fee The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. $ 2,000 $ 28,000 Equipment management fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (i) the fees which would be charged by an independent third party for similar services for similar equipment or (ii) the sum of (a) two percent of (1) the gross lease revenues attributable to equipment which is subject to full payout net leases which contain net lease provisions plus (2) the purchase price paid on conditional sales contracts as received by the Partnership and (b) 5% and 2% of the gross lease revenues attributable to equipment which is subject to operating and capital leases, respectively. $ 78,000 $ 124,000 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 of 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 the 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. $ 400 $ 8,000 Equipment liquidation fee With respect to each item of equipment sold by the General Partner (other than in connection with a conditional sales contract), a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price for such equipment is payable to the General Partner. The payment of such fees is subordinated to the receipt by the limited partners of (i) the return of their net capital contributions and 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. Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. For the nine months ended September 30, 2015, approximately $4,000 of equipment liquidation fees were waived by the General Partner. $ 4,000 $ 9,000

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2015
Notes
Notes Payable	5. Notes Payable Notes payable consisted of the following approximate amounts: September 30, 2015 December 31, 2014 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $10,311 including interest with final payment in September 2015 $ - $ 30,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $5,665, including interest, with final payment in June 2016 17,000 33,000 Installment note payable to bank; interest rate of 4.85%, due in quarterly installments of $35,894, including interest, with final payment in August 2016 139,000 240,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $6,288, including interest, with final payment in December 2016 31,000 48,000 Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $2,775, including interest, with final payment in March 2017 49,000 74,000 Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $5,138, including interest, with final payment in April 2017 96,000 141,000 Installment note payable to bank; interest rate of 4.85%, due in quarterly installments of $7,699, including interest, with final payment in July 2017 59,000 87,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017 3,000 5,000 Installment note payable to bank; interest rate of 4.88%, due in monthly installments of $1,058, including interest, with final payment in October 2017 25,000 33,000 Installment notes payable to bank; interest rate of 4.23%, due in quarterly installments ranging from $1,370 to $1,927, including interest, with final payment in February 2018 31,000 - $ 450,000 $ 691,000 The notes are secured by specific equipment with a carrying value of approximately $732,000 as of September 30, 2015 and are nonrecourse liabilities of the Partnership. As such, the notes do not contain any financial 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 September 30, 2015 are as follows: Amount Three months ended December 31, 2015 $ 82,000 Year ended December 31, 2016 289,000 Year ended December 31, 2017 76,000 Year ended December 31, 2018 3,000 $ 450,000

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2015
Notes
Supplemental Cash Flow Information	6. Supplemental Cash Flow Information Other noncash activities included in the determination of net loss are as follows: Nine months ended September 30, 2015 2014 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 278,000 $ 290,000 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: Nine months ended September 30, 2015 2014 Debt assumed in the connection with purchase of equipment 37,000 349,000 Debt assumed and satisfaction of liability in 2014 in connection with acquisition of equipment in 2013 - 408,000 Accrual for distribution to partners paid in October 2014 - 418,000 During the nine months ended September 30, 2015 and 2014, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $61,000 and $111,000, respectively. During the nine months ended September 30, 2015 and 2014, the Partnership wrote-off fully reserved lease income receivable of approximately $0 and $5,000, respectively. During the nine months ended September 30, 2015 and 2014, the Partnership wrote-off fully depreciated equipment of approximately $16,000 and $403,000, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Notes
Commitments and Contingencies	7. Commitments and Contingencies Medshare In January 2015, CCC, on behalf of the Funds, entered into a Purchase Agreement (“Purchase Agreement”) for the sale of the equipment to Medshare Technologies (“Medshare”) for approximately $3,400,000. The Partnership’s share of the sale proceeds was approximately $77,000. As of September 30, 2015, the Partnership has received approximately $52,000 of the approximate $77,000 sale proceeds. On April 3, 2015 Medshare was obligated to make payment in full and failed to do so. As a result, Medshare defaulted on its purchase agreement with CCC and was issued a demand letter for full payment of the Equipment. On June 25, 2015, Medshare filed a lawsuit in Texas state court for breach of contract (“State Suit”). On June 26, 2015, Commonwealth filed a lawsuit in the Northern District of Texas against Medshare seeking payment in full and/or return of the Equipment and damages. The State Suit was removed to federal court and the Judge has stated that money damages are sufficient and Medshare is to honor the agreement and satisfy the outstanding receivable owed to CCC. The parties are currently in the discovery phase. Management believes that resolution of the lawsuits will not result in any adverse financial impact on the Funds, but no assurance can be provided until the proceeding is resolved (see Note 3). Allied Health Care Services As previously disclosed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2014, 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. FINRA On May 3, 2013, the FINRA Department of Enforcement filed a complaint naming Commonwealth Capital Securities Corp. (“CCSC”) and the owner of the firm, Kimberly Springsteen-Abbott, as respondents; however on October 22, 2013, FINRA filed an amended complaint that dropped the allegations against CCSC and reduced the scope of the allegations against Ms. Springsteen-Abbott. The sole remaining charge was that Ms. Springsteen-Abbott had approved the misallocation of some expenses to certain Funds. Management believes that the expenses at issue include amounts that were proper and that were properly allocated to Funds, and also identified a smaller number of expenses that had been allocated in error, but were adjusted and repaid to the affected Funds when they were identified in 2012. During the period in question, Commonwealth Capital Corp. (“CCC”) and Ms. Springsteen-Abbott provided important financial support to the Funds, voluntarily absorbed expenses and voluntarily waived fees in amounts aggregating in excess of any questioned allocations. That Panel ruled on March 30, 2015, that Ms. Springsteen-Abbott should be barred from the securities industry because the Panel concluded that she allegedly misallocated $208,000 of expenses involving certain Funds over the course of three years. As such, management has allocated approximately $87,000 of the $208,000 in allegedly misallocated expenses back to the affected funds as a contingency accrual in CCC’s financial statements and a good faith payment for the benefit of those Income Funds. Decisions issued by FINRA's Office of Hearing Officers may be appealed to FINRA's National Adjudicatory Council (NAC) pursuant to FINRA Rule 9311. Ms. Springsteen-Abbott has appealed the Panel’s decision and intends to vigorously challenge it. While a panel decision is on appeal, the sanction is not enforced against the individual. An appeal hearing has been scheduled for December 2015. Management believes that resolution of the appeal will not result in any material adverse financial impact on the Funds, but no assurance can be provided until the FINRA matter is resolved.

Summary of Significant Accoun14

Summary of Significant Accounting Policies: Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Basis of Presentation	Basis of Presentation The financial information presented as of any date other than December 31, 2014 has been prepared from the books and records without audit. Financial information as of December 31, 2014 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, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2015.

Summary of Significant Accoun15

Summary of Significant Accounting Policies: Disclosure of Fair Value of Financial Instruments (Policies)	9 Months Ended
	Sep. 30, 2015
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 market data and develop estimated fair value. Cash and cash equivalents, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of September 30, 2015 and December 31, 2014 due to the short term nature of these financial instruments. The Partnership’s debt consists of notes payable, which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at September 30, 2015 and December 31, 2014 approximates the carrying value of these instruments, due to the interest rates on the debt approximating current market interest rates. 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.

Summary of Significant Accoun16

Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Cash and Cash Equivalents	Cash and cash equivalents We consider cash equivalents to be highly liquid investments with an original maturity of 90 days or less. At September 30, 2015, cash was held in two accounts maintained at one financial institution with an aggregate balance of approximately $67,000. Bank accounts are federally insured up to $250,000 by the FDIC. At September 30, 2015, the total cash balance was as follows: At September 30, 2015 Balance Total bank balance $ 67,000 FDIC insured (67,000) Uninsured amount $ - The Partnership’s bank balances are fully insured by the FDIC. The Partnership deposits its funds with a Moody's Aaa-Rated banking institution which is one of only three Aaa-Rated banks listed on the New York Stock Exchange. The Partnership has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk. The amount in such accounts will fluctuate throughout 2015 due to many factors, including cash receipts, equipment acquisitions and interest rates.

Summary of Significant Accoun17

Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2015, the FASB issued Accounting Standards Update No. 2015-14, R evenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2015, the FASB issued Accounting Standards Update No. 2015-10, Technical Corrections and Improvements- In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis- In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items . In August 2014, the FASB issued Accounting Standards Update No. 2014 -15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers 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. This was adopted January 1, 2015, however there were no discontinued operations during the nine months ended, September 30, 2015.

Summary of Significant Accoun18

Summary of Significant Accounting Policies: Cash and Cash Equivalents: Schedule of Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Cash and Cash Equivalents	At September 30, 2015 Balance Total bank balance $ 67,000 FDIC insured (67,000) Uninsured amount $ -

Information Technology, Medic19

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital Equipment ("Equipment"): Schedule of future minimum rentals on non-cancelable leases (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of future minimum rentals on non-cancelable leases	Amount Three months ended December 31, 2015 $ 265,000 Year Ended December 31, 2016 513,000 Year Ended December 31, 2017 106,000 Year Ended December 31, 2018 4,000 $ 888,000

Finance Leases_ Schedule of net

Finance Leases: Schedule of net investment in direct financing leases (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of net investment in direct financing leases	Amount Total minimum lease payments to be received $ 101,000 Estimated residual value of leased equipment (unguaranteed) 20,000 Less: unearned income (11,000) Initial direct costs finance leases 3,000 Net investment in direct finance leases $ 113,000

Finance Leases_ Schedule of Fin

Finance Leases: Schedule of Finance Lease Risk Level (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Finance Lease Risk Level	Risk Level Percent of Total Low -% Moderate-Low -% Moderate -% Moderate-High 100% High -% Net finance lease receivable 100%

Finance Leases_ Schedule of fut

Finance Leases: Schedule of future minimum rentals on non-cancellable finance leases (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of future minimum rentals on non-cancellable finance leases	Amount Three months ended December 31, 2015 $11,000 Year ended December 31, 2016 46,000 Year ended December 31, 2017 39,000 Year ended December 31, 2018 5,000 $101,000

Related Party Transactions_ Sch

Related Party Transactions: Schedule of Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Notes Payable	Nine months ended September 30 , 2015 2014 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 nine months ended September 30, 2015 and 2014, the Partnership was charged approximately $196,000 and $219,000 in Other LP expense, respectively. For the nine months ended September 30, 2015, the Fund was allocated approximately $21,000 from CCC and recorded it as a reduction in operating expenses (see Note 7). $ 414,000 $ 567,000 Equipment acquisition fee The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. $ 2,000 $ 28,000 Equipment management fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (i) the fees which would be charged by an independent third party for similar services for similar equipment or (ii) the sum of (a) two percent of (1) the gross lease revenues attributable to equipment which is subject to full payout net leases which contain net lease provisions plus (2) the purchase price paid on conditional sales contracts as received by the Partnership and (b) 5% and 2% of the gross lease revenues attributable to equipment which is subject to operating and capital leases, respectively. $ 78,000 $ 124,000 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 of 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 the 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. $ 400 $ 8,000 Equipment liquidation fee With respect to each item of equipment sold by the General Partner (other than in connection with a conditional sales contract), a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price for such equipment is payable to the General Partner. The payment of such fees is subordinated to the receipt by the limited partners of (i) the return of their net capital contributions and 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. Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. For the nine months ended September 30, 2015, approximately $4,000 of equipment liquidation fees were waived by the General Partner. $ 4,000 $ 9,000

Notes Payable_ Schedule of futu

Notes Payable: Schedule of future aggregate payments of notes payable (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of future aggregate payments of notes payable	Amount Three months ended December 31, 2015 $ 82,000 Year ended December 31, 2016 289,000 Year ended December 31, 2017 76,000 Year ended December 31, 2018 3,000 $ 450,000

Supplemental Cash Flow Inform25

Supplemental Cash Flow Information: Schedule of Other noncash activities included in the determination of net loss (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Other noncash activities included in the determination of net loss	Nine months ended September 30, 2015 2014 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 278,000 $ 290,000

Supplemental Cash Flow Inform26

Supplemental Cash Flow Information: Schedule of non-cash investing and financing activities (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of non-cash investing and financing activities	Nine months ended September 30, 2015 2014 Debt assumed in the connection with purchase of equipment 37,000 349,000 Debt assumed and satisfaction of liability in 2014 in connection with acquisition of equipment in 2013 - 408,000 Accrual for distribution to partners paid in October 2014 - 418,000

Business (Details)

Business (Details)	9 Months Ended
	Sep. 30, 2015
Details
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania
Entity Incorporation, Date of Incorporation	Jan. 6, 2006

Summary of Significant Accoun28

Summary of Significant Accounting Policies: Cash and Cash Equivalents: Schedule of Cash and Cash Equivalents (Details)	Sep. 30, 2015USD ($)
Details
Cash	$ 67,000
Cash, FDIC Insured Amount	$ (67,000)

Summary of Significant Accoun29

Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details)	9 Months Ended
	Sep. 30, 2015
Details
Cash, Uninsured Amount, Commentary	The Partnership’s bank balances are fully insured by the FDIC. The Partnership deposits its funds with a Moody's Aaa-Rated banking institution which is one of only three Aaa-Rated banks listed on the New York Stock Exchange.

Information Technology, Medic30

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital Equipment ("Equipment") (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Remarketing Fees Incurred	$ 4,000	$ 4,000
RemarketingFeesPaid	0	$ 0
Equipment Shared	5,910,000
Total Shared Equipment	13,025,000
Debt Shared	270,000
Outstanding Debt Total	$ 837,000

Information Technology, Medic31

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital Equipment ("Equipment"): Schedule of future minimum rentals on non-cancelable leases (Details)	Sep. 30, 2015USD ($)
Details
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months	$ 265,000
Capital Leases, Future Minimum Payments Receivable, Rolling Year Two	513,000
Capital Leases, Future Minimum Payments, Receivable in Three Years	106,000
Capital Leases, Future Minimum Payments, Receivable in Four Years	4,000
Capital Leases, Future Minimum Payments Receivable	$ 888,000

Finance Leases_ Schedule of n32

Finance Leases: Schedule of net investment in direct financing leases (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Details
MinimumLeasePaymentsFinanceLeases	$ 101,000
ResidualValueFinanceLeases	20,000
Investment in direct financing leases, unearned income	(11,000)
Finance Leases, Initial Direct Costs	3,000
NetInvestmentInFinanceLeases	$ 113,000

Finance Leases_ Schedule of F33

Finance Leases: Schedule of Finance Lease Risk Level (Details)	Sep. 30, 2015
Details
RiskLevelModerateHigh	100.00%
TotalRiskLevel	100.00%

Finance Leases_ Schedule of f34

Finance Leases: Schedule of future minimum rentals on non-cancellable finance leases (Details)	Sep. 30, 2015USD ($)
Details
Capital Leases, Future Minimum Payments Due, Next Twelve Months	$ 11,000
Capital Leases, Future Minimum Payments Due in Two Years	46,000
Capital Leases, Future Minimum Payments Due in Three Years	39,000
Capital Leases, Future Minimum Payments Due in Four Years	5,000
Capital Leases, Future Minimum Payments Due	$ 101,000

Related Party Transactions_ S35

Related Party Transactions: Schedule of Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Other LP Expense	$ 196,000	$ 219,000
Reimbursable Expenses	414,000	567,000
Equipment Acquisition Fees	2,000	28,000
Equipment Management Fee	78,000	124,000
Debt placement fees	400	8,000
Equipment liquidation fee	$ 4,000	$ 9,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Long-term Debt, Gross	$ 450,000	$ 691,000
Note 1
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.23%
Debt Instrument, Payment Terms	due in quarterly installments of $10,311 including interest
Debt Instrument, Maturity Date, Description	final payment in September 2015
Long-term Debt, Gross		30,000
Note 2
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.23%
Debt Instrument, Payment Terms	due in quarterly installments of $5,665, including interest
Debt Instrument, Maturity Date, Description	final payment in June 2016
Long-term Debt, Gross	$ 17,000	33,000
Note 3
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.85%
Debt Instrument, Payment Terms	due in quarterly installments of $35,894, including interest
Debt Instrument, Maturity Date, Description	final payment in August 2016
Long-term Debt, Gross	$ 139,000	240,000
Note 4
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.23%
Debt Instrument, Payment Terms	due in quarterly installments of $6,288, including interest
Debt Instrument, Maturity Date, Description	final payment in December 2016
Long-term Debt, Gross	$ 31,000	48,000
Note 5
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	1.60%
Debt Instrument, Payment Terms	due in monthly installments of $2,775, including interest
Debt Instrument, Maturity Date, Description	final payment in March 2017
Long-term Debt, Gross	$ 49,000	74,000
Note 6
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	1.60%
Debt Instrument, Payment Terms	due in monthly installments of $5,138, including interest
Debt Instrument, Maturity Date, Description	final payment in April 2017
Long-term Debt, Gross	$ 96,000	141,000
Note 7
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.85%
Debt Instrument, Payment Terms	due in quarterly installments of $7,699, including interest
Debt Instrument, Maturity Date, Description	final payment in July 2017
Long-term Debt, Gross	$ 59,000	87,000
Note 8
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.23%
Debt Instrument, Payment Terms	due in quarterly installments of $420, including interest
Debt Instrument, Maturity Date, Description	final payment in August 2017
Long-term Debt, Gross	$ 3,000	5,000
Note 9
Debt Instrument, Description	Installment note payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.88%
Debt Instrument, Payment Terms	due in monthly installments of $1,058, including interest
Debt Instrument, Maturity Date, Description	final payment in October 2017
Long-term Debt, Gross	$ 25,000	$ 33,000
Note 10
Debt Instrument, Description	Installment notes payable to bank
Debt Instrument, Interest Rate, Stated Percentage	4.23%
Debt Instrument, Payment Terms	due in quarterly installments ranging from $1,370 to $1,927, including interest
Debt Instrument, Maturity Date, Description	final payment in February 2018
Long-term Debt, Gross	$ 31,000

Notes Payable_ Schedule of fu37

Notes Payable: Schedule of future aggregate payments of notes payable (Details)	Sep. 30, 2015USD ($)
Details
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 82,000
Long-term Debt, Maturities, Repayments of Principal in Year Two	289,000
Long-term Debt, Maturities, Repayments of Principal in Year Three	76,000
Long-term Debt, Maturities, Repayments of Principal in Year Four	3,000
Long-term Debt	$ 450,000

Supplemental Cash Flow Inform38

Supplemental Cash Flow Information: Schedule of Other noncash activities included in the determination of net loss (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank	$ 278,000	$ 290,000

Supplemental Cash Flow Inform39

Supplemental Cash Flow Information: Schedule of non-cash investing and financing activities (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Debt assumed in connection with purchase of computer equipment	$ 37,000	$ 349,000
Debt assumed and satisfaction of liability in 2014 in connection with acquisition of equipment in 2013		408,000
Accrual for distribution to partners		$ 418,000

Supplemental Cash Flow Inform40

Supplemental Cash Flow Information (Details)	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Details
Fully Amortized Fees Written Off	61,000	111,000
Write-off of fully reserved lease income receivable	$ 0	$ 5,000
Fully Depreciated Equipment Wrote-Off	$ 16,000	$ 403,000