Commonwealth Income & Growth Fund VI (CIGF6) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Document and Entity Information:
Entity Registrant Name	COMMONWEALTH INCOME & GROWTH FUND VI
Document Type	10-K
Document Period End Date	Dec. 31, 2016
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	0
Entity Public Float		$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania
Entity Incorporation, Date of Incorporation	Jan. 6, 2006

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 332,742	$ 20,855
Lease income receivable, net of reserve of approximately $33,000 and $38,000 at December 31, 2016 and 2015, respectively	173,415	208,761
Accounts receivable - Commonwealth Capital Corp., net	131,445	829,224
Other receivables, net of reserve of approximately $7,000 and $5,000 at December 31, 2016 and 2015, respectively	20,853	22,775
Prepaid expenses	2,505	1,967
Current Assets	660,960	1,083,582
Net Investment in Finance Leases	61,634	102,615
Equipment, at cost	8,405,780	9,308,099
Accumulated depreciation	(7,322,869)	(8,204,315)
Technology equipment, net	1,082,911	1,103,784
Equipment acquisition costs and deferred expenses	39,987	27,608
Total acquisition costs	39,987	27,608
Total Assets	1,845,492	2,317,589
LIABILITIES
Accounts payable	175,294	167,801
Accounts Payable - CIGF, Inc., net	97,590	119,638
Other accrued expenses	94,182	18,365
Unearned lease income	38,843	62,650
Notes payable	605,372	367,801
Total Liabilities	1,011,281	736,255
PARTNERS' CAPITAL
General Partner	1,000	1,000
Limited Partners	833,211	1,580,334
Total Partners' Capital	834,211	1,581,334
Total Liabilities and Partners' Capital	$ 1,845,492	$ 2,317,589

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Lease income receivable, reserve	$ 33,000	$ 38,000
Other receivables, reserve	7,000	5,000
Land, Buildings, Equipment and Leasehold Improvements, accumulated depreciation and amortization	$ 42,000	$ 60,000

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenue
Lease	$ 910,358	$ 1,888,156
Interest and other	5,522	12,326
Gain on sale of equipment	37,053	272,617
Total revenue and gain on sale of equipment	952,933	2,173,099
Expenses
Operating, excluding depreciation	496,925	538,994
Equipment management fee, General Partner	46,426	95,316
Interest	14,346	20,249
Depreciation	740,993	1,365,705
Bad debt expense (recovery)	9,787	(236,209)
Total expenses	1,336,411	1,831,374
Other income (loss)
Net (loss) income	(383,478)	341,725
Net (loss) income allocated to Limited Partners	$ (386,139)	$ 333,946
Net (loss) income per equivalent Limited Partnership unit	$ (.22)	$ 0.19
Weighted average number of equivalent limited partnership units outstanding during the year	1,780,739	1,793,599

Statements of Partners' Capital

Statements of Partners' Capital - USD ($)	General Partners	Limited Partners {1}	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
Partners' Capital Account, Redemptions		$ (12,943)	$ (12,943)
Partners' Capital Account, Units, Redeemed		(3,468)	3,468
Net Income (Loss)	$ 7,779	$ 333,946	$ 341,725
Distributions to Partners	(7,779)	(770,089)	(777,868)
Partners' Capital at Dec. 31, 2015	$ 1,000	$ 1,580,334	1,581,334
Partners' Capital Account, Units at Dec. 31, 2015	50	1,792,074
Partners' Capital Account, Redemptions		$ (97,574)	$ (97,574)
Partners' Capital Account, Units, Redeemed		(24,748)	24,748
Net Income (Loss)	$ 2,661	$ (386,139)	$ (383,478)
Distributions to Partners	(2,661)	(263,410)	(266,071)
Partners' Capital at Dec. 31, 2016	$ 1,000	$ 833,211	$ 834,211
Partners' Capital Account, Units at Dec. 31, 2016	50

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net (loss) income	$ (383,478)	$ 341,725
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization	768,927	1,413,024
Bad debt expense (recovery)	9,787	(236,209)
Gain on sale of equipment	(37,053)	(272,617)
Other noncash activities
Lease revenue net of interest expense, on notes payable, realized as a result of direct payment of principal to bank by lessee	(378,987)	(360,217)
Amortization of initial direct costs	1,350	2,043
Earned interest on finance leases	(5,770)	(8,733)
Changes in operating assets and liabilities
Lease income receivable	25,556	172,541
Accounts receivable, Commonwealth Capital Corp., net	697,779	(504,470)
Other receivables	1,922	(19,281)
Prepaid expenses	(538)	576
Accounts payable	7,493	42,064
Accounts payable, CIGF, Inc., net	(22,048)	(227,571)
Other accrued expenses	(12,549)	(197,643)
Unearned lease income	(23,807)	(26,814)
Net cash provided by operating activities	648,584	118,418
Cash flows from investing activities
Capital expenditures	(131,984)	(8,639)
Payment from finance leases	45,402	45,402
Equipment acquisition fees paid to General Partner	(34,147)	(1,844)
Net proceeds from the sale of equipment	65,477	509,956
Net cash (used in) provided by investing activities	(55,252)	544,875
Cash flows from financing activities
Redemptions	(97,574)	(12,943)
Distributions to partners	(177,705)	(777,868)
Debt placement fees paid to General Partner	(6,166)	(375)
Net cash used in financing activities	(281,445)	(791,186)
Net increase (decrease) in cash and cash equivalents	311,887	(127,893)
Cash and cash equivalents at beginning of year	20,855	148,748
Cash and cash equivalents at end of year	$ 332,742	$ 20,855

Business

Business	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
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 limited partnership interest 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. During the years ended December 31, 2016 and 2015, limited partners redeemed 24,748 and 3,468 units of partnership interest for a total redemption price of approximately $98,000 and $13,000, respectively, in accordance with the terms of the Partnership’s Limited Partnership Agreement (the “Agreement”) The Partnership used the proceeds of the offering to acquire, own and lease various types of computer information technology equipment and other similar capital equipment, which is leased primarily to U.S. corporations and institutions. Commonwealth Capital Corp. (“CCC”), on behalf of the Partnership and other affiliated partnerships, acquires computer equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various partnerships based on certain risk factors. The Partnership’s investment objective is to acquire primarily high technology equipment. Information technology has developed rapidly in recent years and is expected to continue to do so. Technological advances have permitted reductions in the cost of information technology processing capacity, speed, and utility. In the future, the rate and nature of equipment development may cause equipment to become obsolete more rapidly. The Partnership also acquires high technology medical, telecommunications and inventory management equipment. The Partnership’s General Partner will seek to maintain an appropriate balance and diversity in the types of equipment acquired. The market for high technology medical equipment is growing each year. Generally, this type of equipment will have a longer useful life than other types of technology equipment. This allows for increased re-marketability, if it is returned before its economic or announcement cycle is depleted. 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), REISA, 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 the Agreement, the Partnership will continue until December 31, 2018. Allocations of income and distributions of cash are based on the Agreement. The various allocations under the Agreement prevent any limited partner’s capital account from being reduced below zero and ensure the capital accounts reflect the anticipated sharing ratios of cash distributions, as defined in the Agreement. During the years ended December 31, 2016 and 2015, cash distributions to limited partners were made at a rate of approximately 1% and 2%, respectively, of their original contributed capital. Distributions during the years ended December 31, 2016 and 2015 were made to limited partners in the amount of approximately $.15 and $.43, respectively, per unit based on each investor’s number of limited partnership units outstanding during the year.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Summary of Significant Accounting Policies	Use of Estimates The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term, the expected future cash flows and fair value used for impairment analysis purposes and determination of the allowance for doubtful accounts. Disclosure of Fair Value Fair Value Measurements The Partnership applies the provisions included in the Fair Value Measurements and Disclosures Topic to all financial and non-financial assets and liabilities. This Topic emphasizes that fair value is a market-based measurement, not an entity-specific measurement. It clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The Topic requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: · Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. · Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. · Level 3: Unobservable inputs for which there is little or no market data and which require internal development of assumptions about how market participants price the asset or liability. There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015. There were no assets measured on a non-recurring basis at December 31, 2016 and 2015. Fair Value disclosures 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, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of December 31, 2016 and 2015 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 equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at December 31, 2016 and 2015 approximates the carrying value of these instruments, due to the interest rates on this 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. Revenue Recognition For the years ended December 31, 2016 and 2015, the Partnership’s lease portfolio consisted of operating leases and finance leases. For operating leases, lease revenue is recognized on a straight-line basis in accordance with the terms of the lease agreement. Finance lease interest income is recorded over the term of the lease using the effective interest method. For finance leases, we record, at lease inception, unearned finance lease income which is calculated as follows: total lease payments, plus any residual value and initial direct costs, less the cost of the leased equipment. Upon the end of the lease term, if the lessee has not met the return conditions as set out in the lease, the Partnership is entitled in certain cases to additional compensation from the lessee. The Partnership’s accounting policy for recording such payments is to treat them as revenue. Gains or losses from sales of leased and off-lease equipment are recorded on a net basis in the Partnership’s Statement of Operations. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Our leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index. Recently Adopted Accounting Pronouncements 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 June 2015, the FASB issued Accounting Standards Update No. 2015-10, Technical Corrections and Improvements- 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. Other Assets Equipment acquisition costs and deferred expenses are amortized on a straight-line basis over two-to-four year lives based on the original term of the lease and loan, respectively. Unamortized acquisition costs and deferred expenses are charged to amortization expense when the associated leased equipment is sold. Long-Lived Assets Depreciation on technology and inventory management equipment for financial statement purposes is based on the straight-line method estimated generally over useful lives of two to five years. Once an asset comes off lease or is released, the Partnership reassesses the useful life of an asset. The Partnership evaluates its long-lived assets when events or circumstances indicate that the value of the asset may not be recoverable. The Partnership determines whether impairment exists by estimating the undiscounted cash flows to be generated by each asset. If the estimated undiscounted cash flows are less than the carrying value of the asset then impairment exists. The amount of the impairment is determined based on the difference between the carrying value and the fair value. Fair value is determined based on estimated discounted cash flows to be generated by the asset, third party appraisals or comparable sales of similar assets, as applicable, based on asset type. Residual values are determined by management and are calculated using information from both internal and external sources, as well as other economic indicators. Reimbursable Expenses Reimbursable expenses are comprised of both ongoing operational expenses and fees associated with the allocation of salaries and benefits, referred to as other LP 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, leasing volume and stage of the program. For example, if a partnership has more investors than another program sponsored by CCC, then higher amounts of expenses related to investor services, including mailing and printing costs will be allocated to that partnership. Also, while a partnership is in its offering stage, higher compliance costs are allocated to it than to a program not in its offering stage, as compliance resources are utilized to review incoming investor suitability and proper documentation. Finally, lease related expenses, such as due diligence, correspondence, collection efforts and analysis and staff costs, increase as programs purchase more leases, and decrease as leases terminate and equipment is sold. All of these factors contribute to CCC’s determination as to the amount of expenses to allocate to the Partnership or to other sponsored programs. CCC is not reimbursed for salary and benefit costs of control persons. For the Partnership, all reimbursable items are expensed as they are incurred. Lease Income Receivable Lease income receivable includes current lease income receivable net of allowances for uncollectible amounts, if any. The Partnership monitors lease income receivable to ensure timely and accurate payment by lessees. The Partnership’s Lease Relations department is responsible for monitoring lease income receivable and, as necessary, resolving outstanding invoices. The Partnership reviews a customer’s credit history before extending credit. When the analysis indicates that the probability of full collection is unlikely, the Partnership may establish an allowance for uncollectible lease income receivable based upon the credit risk of specific customers, historical trends and other information. The Partnership writes off its lease income receivable when it determines that it is uncollectible and all economically sensible means of recovery have been exhausted. Cash and cash equivalents We consider cash and cash equivalents to be cash on hand and highly liquid investments with an original maturity of 90 days or less. At December 31, 2016, cash was held in a total of two accounts maintained at one financial institution with an aggregate balance of approximately $335,000. Bank accounts are federally insured up to $250,000 by the FDIC. At December 31, 2016 and 2015, the aggregate cash balances were as follows: Balance at December 31, 2016 2015 Total bank balance $ 335,000 $ 22,000 FDIC insured $ (250,000) $ (22,000) Uninsured amount $ 85,000 $ - 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 2016 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners. Income Taxes P Taxable income differs from financial statement net income as a result of reporting certain income and expense items for tax purposes in periods other than those used for financial statement purposes, principally relating to depreciation, amortization, and lease revenue. Net (Loss) Income Per Equivalent Limited Partnership Unit The net (loss) income per equivalent limited partnership unit is computed based upon net (loss) income allocated to the limited partners and the weighted average number of equivalent units outstanding during the period. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). Various amendments to ASU No. 2014-09 have been issued, including; · ASU No. 2016-08 (issued in March 2016) which amends principal versus agent guidance by reframing the indicators in the guidance to focus on evidence that an entity is acting as a principal rather than as an agent; · ASU No. 2016-10 (issued in April 2016) which amends criteria around licensing and performance obligations; · ASU No. 2016-12 (issued in May 2016); which provides guidance on assessing collectability, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition; and · ASU No. 2016-20 (issued in December 2016) which contains various technical corrections and improvements to ASU No. 2014-09. FASB Accounting Standards Update 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In doing so, entities will need to use more judgment and make more estimates than under current guidance. These judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 also requires an entity to disclose sufficient qualitative and quantitative information surrounding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition In October 2016, the FASB issued Accounting Standards Update 2016-17 — Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. In August 2016, the FASB issued Accounting Standards Update 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Section A—Leases: Amendments to the FASB Accounting Standards Codification® Section B—Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification® Section C—Background Information and Basis for Conclusions In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

Information Technology, Medical

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment')	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment')	The Partnership is the lessor of equipment under leases with periods generally ranging 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 and encourages potential extensions, remarketing or sale of equipment. This strategy is designed to minimize 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 years ended December 31, 2016 and 2015, approximately $5,000 and $6,000 of remarketing fees were incurred, respectively. For the years ended December 31, 2016 and 2015, there were no remarketing fees paid with cash and/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 8 - Medshare). Gains or losses from sales of leased and off-lease equipment are recorded on a net basis in the Partnership’s Statement of Operations. 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 year ended December 31, 2016 and 2015, was approximately $4,000 and $90,000, 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 December 31, 2016 was approximately $4,517,000 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, 2016 was approximately $10,060,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2016 was approximately $33,000 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, 2016 was approximately $96,000. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2015 was approximately $5,111,000 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, 2015 was approximately $11,246,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2015 was approximately $214,000 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, 2015 was approximately $660,000. As the Partnership and the other programs managed by the General Partner increase their overall portfolio size, opportunities for shared participation are expected to continue. Sharing in the acquisition of a lease portfolio gives the Partnership an opportunity to acquire additional assets and revenue streams, while allowing the Partnership to remain diversified and reducing its overall risk with respect to one portfolio. Thus, total shared equipment and related debt should continue throughout 2017 as the Partnership continues to acquire equipment for its portfolio. The following is a schedule of approximate future minimum rentals on non-cancelable operating leases at December 31, 2016: Years Ended December 31, Amount 2017 $ 359,000 2018 251,000 2019 187,000 2020 2,000 $ 799,000 Finance Leases The following lists the approximate components of the net investment in direct financing leases: At December 31, 2016 2015 Total minimum lease payments to be received $ 44,000 $ 89,000 Initial direct costs 1,000 2,000 Estimated residual value of leased equipment (unguaranteed) 20,000 20,000 Less: unearned income (3,000) (8,000) Net investment in direct finance leases $ 62,000 $ 103,000 This credit risk is assessed using an internally developed model which incorporates credit 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 include 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. A reserve for credit losses is deemed necessary when payment has not been received for one or more months of receivables due on the equipment held under finance leases. At the end of each period, management evaluates the open receivables due on this equipment and determines the need for a reserve based on payment history and any current factors that would have an impact on payments. The following table presents the credit risk profile, by creditworthiness category, of our finance lease receivables at December 31, 2016: Percent of Total Risk Level 2016 2015 Low -% -% Moderate-Low -% -% Moderate -% -% Moderate-High 100% 100% High -% -% Net Finance lease receivable 100% 100% As of December 31, 2016, 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 approximate future minimum rentals on non-cancelable finance leases: At December 31, Amount 2017 $ 39,000 2018 5,000 $ 44,000

Significant Customers

Significant Customers	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Significant Customers	Lessees equal to or exceeding 10% of lease revenue: Years Ended December 31, 2016 2015 Cummins, Inc. 27% 29% Alliant Techsystems 20% 11% Cargill, Inc. 15% 12% Automatic Data Processing, Inc. 11% ** Aetna Life Insurance ** 15% Verso Paper ** 13% ** Represents less than 10% of lease revenue Lessees equal to or exceeding 10% of net lease income receivable: At December 31, 2016 2015 Cargill, Inc. 35% 34% Cummins, Inc. 27% 51% Alliant Techsystems 16% ** ** Represents less than 10% of lease income receivable

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Related Party Transactions	Receivables/Payables As of December 31, 2016 and 2015, the Partnership’s related party receivables and payables are short term, unsecured, and non-interest bearing. ENTITY RECEIVING COMPENSATION TYPE OF COMPENSATION AMOUNT INCURRED DURING 2016 AMOUNT INCURRED DURING 2015 OPERATIONAL AND SALE OR LIQUIDATION STAGES The General Partner Equipment Acquisition Fee $ 30,000 $ 2,000 The General Partner and its Affiliates Reimbursable Expenses $ 478,000 $ 531,000 The General Partner Debt Placement Fee $ 6,000 $ - The General Partner Equipment Management Fee $ 46,000 $ 95,000 The General Partner Equipment Liquidation Fee $ - $ 4,000 The General Partner Partnership Interest and Distribution $ 3,000 $ 8,000

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Notes Payable	Notes payable consisted approximately of the following: At December 31, 2016 2015 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 $ - $ 11,000 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 - 105,000 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 - 25,000 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 8,000 41,000 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 21,000 81,000 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 23,000 52,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017 1,000 3,000 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 10,000 22,000 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 16,000 28,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018 3,000 - Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019 12,000 - Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $1,339, including interest, with final payment in August 2019 40,000 - Installment note payable to bank; interest rate of 4.37%, due in monthly installments of $42,121, including interest, with final payment in October 2019 471,000 - $ 605,000 $ 368,000 The notes are secured by specific equipment with a carrying value of approximately $981,000 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 approximate payments of notes payable for each of the periods subsequent to December 31, 2016 are as follows: Years Ended December 31, Amount 2017 $ 247,000 2018 183,000 2019 175,000 $ 605,000

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Supplemental Cash Flow Information	No interest or principal on notes payable was paid by the Partnership during 2016 and 2015 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 approximately include the following: Years Ended December 31, 2016 2015 Debt assumed in connection with purchase of equipment $ 617,000 $ 37,000 Accrual for distribution to partners paid in January 2017 $ 88,000 $ - During the years ended December 31, 2016 and 2015, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $46,000 and $112,000, respectively. During the years ended December 31, 2016 and 2015, the Partnership wrote-off fully reserved lease income receivable of approximately $0 and $4,000, respectively. During the years ended December 31, 2016 and 2015, the Partnership wrote-off fully depreciated assets of approximately $5,000 and $0, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
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, 2015, 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, Mr. Schwartz, 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. During 2015, Commonwealth received an Allied bankruptcy settlement of approximately $448,000. The Partnership’s portion was approximately $242,000, which was included as a bad debt recovery in the 2015 fourth quarter statement of financial operations. The bankruptcy proceedings have been finalized and no further recovery is expected. 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 $1,033,000. As of August 2, 2016, the Partnership had received approximately $545,000 of the approximate $1,033,000 sale proceeds and had recorded a reserve of $137,000 against the outstanding receivable. 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. In July 2016, CCC, on behalf of the Funds, entered into a $1,400,000 binding Settlement Agreement (“Settlement Agreement”) with Medshare and its principal owner, Chris Cleary (collectively referred to as “Defendants”), who are held jointly and severally liable for the entire settlement. On August 2, 2016, the Defendants made payment to CCC of an initial $200,000 to be followed by 24 structured monthly payments of approximately $50,000 per month to begin no later than September 15, 2016. The Partnership’s share of the Settlement Agreement is approximately $23,000 and is to be applied against the net Medshare receivable of approximately $18,000 as of the settlement date. The remaining $5,000 will be applied against the $7,000 reserve and recorded as a bad debt recovery. As of March 6, 2017, the Partnership received approximately $7,000 of the approximate $23,000 settlement agreement which was applied against the net Medshare receivable of approximately $18,000 as of the settlement date. Should the Defendants default at any time, the settlement agreement includes a consent judgment that allows CCC to seek immediate judgment against the Defendants from a court of competent jurisdiction for the liquidated damage amount of $1.5 million (less any payment received after execution of the agreement). The Partnership’s share of the judgment would be approximately $24,000. Based on discussions with counsel, management believes that the likelihood of loss is remote. As such, management believes that the settlement 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. 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 approximately $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. The NAC Decision upheld the Panel’s ruling. Ms. Springsteen-Abbott has appealed the NAC Decision to the SEC. While a decision is on appeal with the SEC, the sanctions for disgorgement and fines are not enforced against the individual. The bar took effect on August 23, 2016. 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. As of March 31, 2017, the results of appeal are pending.

Reconciliation of Amounts Repor

Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (unaudited)	The tax basis of the Partnership’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2016 and 2015 as follows: Years Ended December 31, 2016 2015 Financial statement basis of net assets $ 834,211 $ 1,581,334 Tax basis of net assets (unaudited) (462,204) 282,796 Difference (unaudited) $ (1,296,415) $ (1,298,538) The primary differences between the tax basis of net assets and the amounts recorded in the financial statements are the result of differences in accounting for impairment losses, syndication costs and differences between the depreciation methods used in the financial statements and the Partnership’s tax returns (unaudited). Years ended December 31, 2016 2015 Net (loss) income for financial reporting purposes to taxable loss $ (383,478) $ 341,725 Adjustments (unaudited) (Loss) Gain on sale of equipment (6,757) 131,282 Depreciation (2,784) 805,741 Amortization 7,885 28,603 Unearned lease income 15,824 (7,892) Penalties 3,265 1,290 Bad debts 1,649 533 Other 1,513 (24,012) Taxable (loss) income on the Federal Partnership return (unaudited) $ (362,883) $ 1,277,270 The “Adjustments – Other” includes financial statement adjustments that will be reflected on the tax return in the subsequent year.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Policy Text Block [Abstract]
Use of Estimates	The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term, the expected future cash flows and fair value used for impairment analysis purposes and determination of the allowance for doubtful accounts.
Fair Value Measurement	The Partnership applies the provisions included in the Fair Value Measurements and Disclosures Topic to all financial and non-financial assets and liabilities. This Topic emphasizes that fair value is a market-based measurement, not an entity-specific measurement. It clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The Topic requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: · Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. · Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. · Level 3: Unobservable inputs for which there is little or no market data and which require internal development of assumptions about how market participants price the asset or liability. There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015. There were no assets measured on a non-recurring basis at December 31, 2016 and 2015.
Fair Value Disclosures 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, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of December 31, 2016 and 2015 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 equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at December 31, 2016 and 2015 approximates the carrying value of these instruments, due to the interest rates on this 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.
Revenue Recognition	For the years ended December 31, 2016 and 2015, the Partnership’s lease portfolio consisted of operating leases and finance leases. For operating leases, lease revenue is recognized on a straight-line basis in accordance with the terms of the lease agreement. Finance lease interest income is recorded over the term of the lease using the effective interest method. For finance leases, we record, at lease inception, unearned finance lease income which is calculated as follows: total lease payments, plus any residual value and initial direct costs, less the cost of the leased equipment. Upon the end of the lease term, if the lessee has not met the return conditions as set out in the lease, the Partnership is entitled in certain cases to additional compensation from the lessee. The Partnership’s accounting policy for recording such payments is to treat them as revenue. Gains or losses from sales of leased and off-lease equipment are recorded on a net basis in the Partnership’s Statement of Operations. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Our leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index.
Recently Adopted Accounting Pronouncements	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 June 2015, the FASB issued Accounting Standards Update No. 2015-10, Technical Corrections and Improvements- 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.
Other Assets	Equipment acquisition costs and deferred expenses are amortized on a straight-line basis over two-to-four year lives based on the original term of the lease and loan, respectively. Unamortized acquisition costs and deferred expenses are charged to amortization expense when the associated leased equipment is sold.
Long-lived Assets	Depreciation on technology and inventory management equipment for financial statement purposes is based on the straight-line method estimated generally over useful lives of two to five years. Once an asset comes off lease or is released, the Partnership reassesses the useful life of an asset. The Partnership evaluates its long-lived assets when events or circumstances indicate that the value of the asset may not be recoverable. The Partnership determines whether impairment exists by estimating the undiscounted cash flows to be generated by each asset. If the estimated undiscounted cash flows are less than the carrying value of the asset then impairment exists. The amount of the impairment is determined based on the difference between the carrying value and the fair value. Fair value is determined based on estimated discounted cash flows to be generated by the asset, third party appraisals or comparable sales of similar assets, as applicable, based on asset type. Residual values are determined by management and are calculated using information from both internal and external sources, as well as other economic indicators.
Reimbursable Expenses	Reimbursable expenses are comprised of both ongoing operational expenses and fees associated with the allocation of salaries and benefits, referred to as other LP 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, leasing volume and stage of the program. For example, if a partnership has more investors than another program sponsored by CCC, then higher amounts of expenses related to investor services, including mailing and printing costs will be allocated to that partnership. Also, while a partnership is in its offering stage, higher compliance costs are allocated to it than to a program not in its offering stage, as compliance resources are utilized to review incoming investor suitability and proper documentation. Finally, lease related expenses, such as due diligence, correspondence, collection efforts and analysis and staff costs, increase as programs purchase more leases, and decrease as leases terminate and equipment is sold. All of these factors contribute to CCC’s determination as to the amount of expenses to allocate to the Partnership or to other sponsored programs. CCC is not reimbursed for salary and benefit costs of control persons. For the Partnership, all reimbursable items are expensed as they are incurred.
Lease Income Receivable	Lease income receivable includes current lease income receivable net of allowances for uncollectible amounts, if any. The Partnership monitors lease income receivable to ensure timely and accurate payment by lessees. The Partnership’s Lease Relations department is responsible for monitoring lease income receivable and, as necessary, resolving outstanding invoices. The Partnership reviews a customer’s credit history before extending credit. When the analysis indicates that the probability of full collection is unlikely, the Partnership may establish an allowance for uncollectible lease income receivable based upon the credit risk of specific customers, historical trends and other information. The Partnership writes off its lease income receivable when it determines that it is uncollectible and all economically sensible means of recovery have been exhausted.
Cash and Cash Equivalents	We consider cash and cash equivalents to be cash on hand and highly liquid investments with an original maturity of 90 days or less. At December 31, 2016, cash was held in a total of two accounts maintained at one financial institution with an aggregate balance of approximately $335,000. Bank accounts are federally insured up to $250,000 by the FDIC. At December 31, 2016 and 2015, the aggregate cash balances were as follows: Balance at December 31, 2016 2015 Total bank balance $ 335,000 $ 22,000 FDIC insured $ (250,000) $ (22,000) Uninsured amount $ 85,000 $ - 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 2016 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners.
Income Taxes	P Taxable income differs from financial statement net income as a result of reporting certain income and expense items for tax purposes in periods other than those used for financial statement purposes, principally relating to depreciation, amortization, and lease revenue.
Net (Loss) Income Per Equivalent Limited Partnership Unit	The net (loss) income per equivalent limited partnership unit is computed based upon net (loss) income allocated to the limited partners and the weighted average number of equivalent units outstanding during the period.
Recent Accounting Pronouncements Not Yet Adopted	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). Various amendments to ASU No. 2014-09 have been issued, including; · ASU No. 2016-08 (issued in March 2016) which amends principal versus agent guidance by reframing the indicators in the guidance to focus on evidence that an entity is acting as a principal rather than as an agent; · ASU No. 2016-10 (issued in April 2016) which amends criteria around licensing and performance obligations; · ASU No. 2016-12 (issued in May 2016); which provides guidance on assessing collectability, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition; and · ASU No. 2016-20 (issued in December 2016) which contains various technical corrections and improvements to ASU No. 2014-09. FASB Accounting Standards Update 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In doing so, entities will need to use more judgment and make more estimates than under current guidance. These judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 also requires an entity to disclose sufficient qualitative and quantitative information surrounding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition In October 2016, the FASB issued Accounting Standards Update 2016-17 — Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. In August 2016, the FASB issued Accounting Standards Update 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Section A—Leases: Amendments to the FASB Accounting Standards Codification® Section B—Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification® Section C—Background Information and Basis for Conclusions In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Schedule of Cash and Cash Equivalents	Balance at December 31, 2016 2015 Total bank balance $ 335,000 $ 22,000 FDIC insured $ (250,000) $ (22,000) Uninsured amount $ 85,000 $ -

Information Technology, Medic18

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Schedule of future minimum rentals on non-cancellable operating leases	Years Ended December 31, Amount 2017 $ 359,000 2018 251,000 2019 187,000 2020 2,000 $ 799,000
Net investment in direct financing leases	At December 31, 2016 2015 Total minimum lease payments to be received $ 44,000 $ 89,000 Initial direct costs 1,000 2,000 Estimated residual value of leased equipment (unguaranteed) 20,000 20,000 Less: unearned income (3,000) (8,000) Net investment in direct finance leases $ 62,000 $ 103,000
Finance lease risk level	Percent of Total Risk Level 2016 2015 Low -% -% Moderate-Low -% -% Moderate -% -% Moderate-High 100% 100% High -% -% Net Finance lease receivable 100% 100%
Schedule of future minimum rentals on non-cancelable direct financing leases	At December 31, Amount 2017 $ 39,000 2018 5,000 $ 44,000

Significant Customers (Tables)

Significant Customers (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Schedule of Lessees equal to or exceeding 10% of lease revenue	Years Ended December 31, 2016 2015 Cummins, Inc. 27% 29% Alliant Techsystems 20% 11% Cargill, Inc. 15% 12% Automatic Data Processing, Inc. 11% ** Aetna Life Insurance ** 15% Verso Paper ** 13% ** Represents less than 10% of lease revenue
Schedule of Lessees equal to or exceeding 10% of lease income receivable	At December 31, 2016 2015 Cargill, Inc. 35% 34% Cummins, Inc. 27% 51% Alliant Techsystems 16% ** ** Represents less than 10% of lease income receivable

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Schedule of Related Party Transactions	ENTITY RECEIVING COMPENSATION TYPE OF COMPENSATION AMOUNT INCURRED DURING 2016 AMOUNT INCURRED DURING 2015 OPERATIONAL AND SALE OR LIQUIDATION STAGES The General Partner Equipment Acquisition Fee $ 30,000 $ 2,000 The General Partner and its Affiliates Reimbursable Expenses $ 478,000 $ 531,000 The General Partner Debt Placement Fee $ 6,000 $ - The General Partner Equipment Management Fee $ 46,000 $ 95,000 The General Partner Equipment Liquidation Fee $ - $ 4,000 The General Partner Partnership Interest and Distribution $ 3,000 $ 8,000

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Schedule of Notes Payable	At December 31, 2016 2015 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 $ - $ 11,000 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 - 105,000 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 - 25,000 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 8,000 41,000 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 21,000 81,000 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 23,000 52,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017 1,000 3,000 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 10,000 22,000 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 16,000 28,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018 3,000 - Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019 12,000 - Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $1,339, including interest, with final payment in August 2019 40,000 - Installment note payable to bank; interest rate of 4.37%, due in monthly installments of $42,121, including interest, with final payment in October 2019 471,000 - $ 605,000 $ 368,000
Schedule of future aggregate payments of notes payable	Years Ended December 31, Amount 2017 $ 247,000 2018 183,000 2019 175,000 $ 605,000

Supplemental Cash Flow Inform22

Supplemental Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Schedule of non-cash investing and financing activities	Years Ended December 31, 2016 2015 Debt assumed in connection with purchase of equipment $ 617,000 $ 37,000 Accrual for distribution to partners paid in January 2017 $ 88,000 $ -

Reconciliation of Amounts Rep23

Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Tables)	12 Months Ended
	Dec. 31, 2016
Table Text Block Supplement [Abstract]
Tax Basis of the Partnership's Net Assets and Liabilities	Years Ended December 31, 2016 2015 Financial statement basis of net assets $ 834,211 $ 1,581,334 Tax basis of net assets (unaudited) (462,204) 282,796 Difference (unaudited) $ (1,296,415) $ (1,298,538)
Schedule of Effective Income Tax Reconciliation	Years ended December 31, 2016 2015 Net (loss) income for financial reporting purposes to taxable loss $ (383,478) $ 341,725 Adjustments (unaudited) (Loss) Gain on sale of equipment (6,757) 131,282 Depreciation (2,784) 805,741 Amortization 7,885 28,603 Unearned lease income 15,824 (7,892) Penalties 3,265 1,290 Bad debts 1,649 533 Other 1,513 (24,012) Taxable (loss) income on the Federal Partnership return (unaudited) $ (362,883) $ 1,277,270

Business (Details)

Business (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania
Entity Incorporation, Date of Incorporation	Jan. 6, 2006
Partners' Capital Account, Units, Redeemed	24,748	3,468
Partners' Capital Account, Redemptions	$ 97,574	$ 12,943

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Total bank balance	$ 335,000	$ 22,000
FDIC Insured	(250,000)	(22,000)
Uninsured Amount	$ 85,000	$ 0

Information Technology, Medic26

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details)	Dec. 31, 2016USD ($)
Text Block [Abstract]
Year Ended December 31, 2017	$ 359,000
Year Ended December 31, 2018	251,000
Year Ended December 31, 2019	187,000
Year Ended December 31, 2020	2,000
Total	$ 799,000

Information Technology, Medic27

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Total minimum lease payments to be received	$ 44,000	$ 89,000
Initial direct costs	1,000	2,000
Estimated residual value of leased equipment (unguaranteed)	20,000	20,000
Less: unearned income	(3,000)	(8,000)
Net investment in finance leases	$ 62,000	$ 103,000

Information Technology, Medic28

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 2)	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Low	0.00%	0.00%
Moderate-Low	0.00%	0.00%
Moderate	0.00%	0.00%
Moderate-High	100.00%	100.00%
High	0.00%	0.00%
Net finance lease receivable	100.00%	100.00%

Information Technology, Medic29

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 3)	Dec. 31, 2016USD ($)
Text Block [Abstract]
2,017	$ 39,000
2,018	5,000
Total	$ 44,000

Information Technology, Medic30

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Remarketing Fees Incurred	$ 5,000	$ 6,000
Equipment Shared	4,517,000	5,111,000
Debt Shared	33,000	214,000
Total Shared Equipment	10,060,000	11,246,000
Outstanding Debt Total	$ 96,000	$ 660,000

Significant Customers (Details)

Significant Customers (Details)	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015
Cummins, Inc.
Percent Lease Revenue	27.00%		29.00%
Alliant Techsystems
Percent Lease Revenue	20.00%		11.00%
Cargill, Inc.
Percent Lease Revenue	15.00%		12.00%
Automatic Data Processing, Inc.
Percent Lease Revenue	11.00%			[1]
Aetna Life Insurance
Percent Lease Revenue		[1]	15.00%
Verso Paper
Percent Lease Revenue		[1]	13.00%
[1]	Represents less than 10% of lease revenue

Significant Customers (Details

Significant Customers (Details 1)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cargill, Inc.
Percent Lease Income Receivable	35.00%	34.00%
Cummins, Inc.
Percent Lease Income Receivable	27.00%	51.00%
Alliant Techsystems
Percent Lease Income Receivable	16.00%		[1]
[1]	Represents less than 10% of lease income receivable

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Equipment acquisition fees earned from operating leases	$ 30,000	$ 2,000
Equipment acquisition fees earned from finance leases	30,000	0
Equipment Acquisition Fees	2,000	0
Other LP Expense	198,000	254,000
Reimbursable Expenses	478,000	531,000
Debt placement fees	6,000	0
Equipment Management Fee	46,000	95,000
Equipment liquidation fees waived	2,000	11,000
Equipment liquidation fee	0	4,000
Partnership Interest and Distribution	$ 3,000	$ 8,000

Related Party Transactions (D34

Related Party Transactions (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Long-term Debt, Gross	$ 605,000	$ 368,000
Note 1
Debt Instrument, Description	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
Long-term Debt, Gross	$ 0	11,000
Note 2
Debt Instrument, Description	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
Long-term Debt, Gross	$ 0	105,000
Note 3
Debt Instrument, Description	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
Long-term Debt, Gross	$ 0	25,000
Note 4
Debt Instrument, Description	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
Long-term Debt, Gross	$ 8,000	41,000
Note 5
Debt Instrument, Description	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
Long-term Debt, Gross	$ 21,000	81,000
Note 6
Debt Instrument, Description	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
Long-term Debt, Gross	$ 23,000	52,000
Note 7
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017
Long-term Debt, Gross	$ 1,000	3,000
Note 8
Debt Instrument, Description	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
Long-term Debt, Gross	$ 10,000	22,000
Note 9
Debt Instrument, Description	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
Long-term Debt, Gross	$ 16,000	28,000
Note 10
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018
Long-term Debt, Gross	$ 3,000	0
Note 11
Debt Instrument, Description	Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019
Long-term Debt, Gross	$ 12,000	0
Note 12
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $1,339, including interest, with final payment in August 2019
Long-term Debt, Gross	$ 40,000	0
Note 13
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.37%, due in monthly installments of $42,121, including interest, with final payment in October 2019
Long-term Debt, Gross	$ 471,000	$ 0

Related Party Transactions (D35

Related Party Transactions (Details 2)	Dec. 31, 2016USD ($)
Text Block [Abstract]
2,017	$ 247,000
2,018	183,000
2,019	175,000
Long-term Debt	$ 605,000

Supplemental Cash Flow Inform36

Supplemental Cash Flow Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Debt assumed in connection with purchase of equipment	$ 617,000	$ 37,000
Accrual for distribution to partners paid in January 2017	$ 88,000	$ 0

Supplemental Cash Flow Inform37

Supplemental Cash Flow Information (Details Narrative)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Text Block [Abstract]
Fully Amortized Fees Written Off	46,000	112,000
Allowance for Doubtful Accounts Receivable, Write-offs	$ 0	$ 4,000
Fully Depreciated Equipment Wrote-Off	$ 5,000	$ 0

Reconciliation of Amounts Rep38

Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Text Block [Abstract]
Financial statement basis of net assets	$ 834,211	$ 1,581,334	$ 2,030,420
Tax basis of net assets (unaudited)	(462,204)	282,796
Difference (unaudited)	$ (1,296,415)	$ (1,298,538)

Reconciliation of Amounts Rep39

Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Net (loss) income for financial reporting purposes to taxable loss	$ (383,478)	$ 341,725
Adjustments (unaudited)
(Loss) Gain on sale of equipment	(6,757)	131,282
Depreciation	(2,784)	805,741
Amortization	7,885	28,603
Unearned Lease Income	15,824	(7,892)
Penalties	3,265	1,290
Bad Debts	1,649	533
Other	1,513	(24,012)
Taxable (loss) income on the Federal Partnership return (unaudited)	$ (362,883)	$ 1,277,270