Commonwealth Income & Growth Fund VI (CIGF6) 10-K 2 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Document and Entity Information:
Entity Registrant Name	COMMONWEALTH INCOME & GROWTH FUND VI
Document Type	10-K
Document Period End Date	Dec. 31, 2017
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	2,017
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, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 24,583	$ 332,742
Lease income receivable, net of reserve of approximately $33,000 at December 31, 2017 and 2016, respectively	132,566	173,415
Accounts receivable - Commonwealth Capital Corp., net	247,286	131,445
Other receivables, net of reserve of approximately $12,000 and $7,000 at December 31, 2017 and 2016, respectively	33,949	20,853
Prepaid expenses	3,713	2,505
Current Assets	442,097	660,960
Net Investment in Finance Leases	13,474	61,634
Equipment, at cost	9,033,540	8,405,780
Accumulated depreciation	(7,650,855)	(7,322,869)
Technology equipment, net	1,382,685	1,082,911
Equipment acquisition costs and deferred expenses, net of accumulated amortization of approximately $33,000 and $42,000 at December 31, 2017 and 2016, respectively	56,019	39,987
Total acquisition costs	56,019	39,987
Total Assets	1,894,275	1,845,492
LIABILITIES
Accounts payable	162,009	175,294
Accounts Payable - CIGF, Inc., net	158,571	97,590
Other accrued expenses	95,348	94,182
Unearned lease income	60,847	38,843
Notes payable	928,032	605,372
Total Liabilities	1,404,807	1,011,281
PARTNERS' CAPITAL
General Partner	1,000	1,000
Limited Partners	488,468	833,211
Total Partners' Capital	489,468	834,211
Total Liabilities and Partners' Capital	$ 1,894,275	$ 1,845,492

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Lease income receivable, reserve	$ 33,000	$ 33,000
Other receivables, reserve	12,000	7,000
Land, Buildings, Equipment and Leasehold Improvements, accumulated depreciation and amortization	$ 33,000	$ 42,000

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenue
Lease	$ 1,024,530	$ 910,358
Interest and other	2,572	5,522
Gain on sale of equipment		37,053
Total revenue and gain on sale of equipment	1,027,102	952,933
Expenses
Operating, excluding depreciation	449,820	496,925
Equipment management fee, General Partner	52,006	46,426
Interest	40,186	14,346
Depreciation	723,677	740,993
Amortization of equipment acquisition costs and deferred expenses	35,064	27,934
Bad debt expense (recovery)	10,416	9,787
Loss on sale of computer equipment	(7,137)	37,053
Total expenses	1,318,306	1,336,411
Other income (loss)
Gain from insurance recovery	24,135	0
Total other income	24,135	0
Net loss	(267,069)	(383,478)
Net loss allocated to Limited Partners	$ (267,465)	$ (386,139)
Net loss per equivalent Limited Partnership unit	$ (0.15)	$ (0.22)
Weighted average number of equivalent limited partnership units outstanding during the year	1,760,362	1,780,739

Statements of Partners' Capital

Statements of Partners' Capital - USD ($)	General Partners	Limited Partners {1}	Total
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	1,767,326
Partners' Capital Account, Redemptions		$ (39,565)	$ (39,565)
Partners' Capital Account, Units, Redeemed		(9,930)	9,930
Net Income (Loss)	$ 396	$ (267,465)	$ (267,069)
Distributions to Partners	(396)	(37,713)	(38,109)
Partners' Capital at Dec. 31, 2017	$ 1,000	$ 488,468	$ 489,468
Partners' Capital Account, Units at Dec. 31, 2017	50	1,757,396

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net loss	$ (267,069)	$ (383,478)
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization	758,740	768,927
Bad debt expense	10,416	9,787
Net loss (gain) on sale of equipment	7,137	(37,053)
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	(509,310)	(378,987)
Amortization of initial direct costs	622	1,350
Earned interest on finance leases	(2,666)	(5,770)
Changes in operating assets and liabilities
Lease income receivable	30,433	25,556
Accounts receivable, Commonwealth Capital Corp., net	(115,841)	697,779
Other receivables	(13,096)	1,922
Prepaid expenses	(1,208)	(538)
Accounts payable	(13,283)	7,493
Accounts payable, CIGF, Inc., net	60,981	(22,048)
Other accrued expenses	89,533	(12,549)
Unearned lease income	22,004	(23,807)
Net cash provided by operating activities	57,393	648,584
Cash flows from investing activities
Capital expenditures	(218,664)	(131,984)
Payment from finance leases	38,981	45,402
Equipment acquisition fees paid to General Partner	(42,776)	(34,147)
Net proceeds from the sale of equipment	31,267	65,477
Net cash used in investing activities	(191,192)	(55,252)
Cash flows from financing activities
Redemptions	(39,565)	(97,574)
Distributions to partners	(126,475)	(177,705)
Debt placement fees paid to General Partner	(8,320)	(6,166)
Net cash used in financing activities	(174,360)	(281,445)
Net (decrease) increase in cash and cash equivalents	(308,159)	311,887
Cash and cash equivalents at beginning of year	332,742	20,855
Cash and cash equivalents at end of year	$ 24,583	$ 332,742

Business

Business	12 Months Ended
	Dec. 31, 2017
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, 2017 and 2016, limited partners redeemed 9,930 and 24,748 units of partnership interest for a total redemption price of approximately $40,000 and $98,000, 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, 2017 and 2016, cash distributions to limited partners were made at a rate of approximately 0.1% and 1%, respectively, of their original contributed capital. Distributions during the years ended December 31, 2017 and 2016 were made to limited partners in the amount of approximately $.02 and $.15, 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, 2017
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, 2017 and 2016. There were no assets measured on a non-recurring basis at December 31, 2017 and 2016. 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, 2017 and 2016 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, 2017 and 2016 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, 2017 and 2016, 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 2016, the FASB issued Accounting Standards Update 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 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 Recent Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued Accounting Standards Update No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities- 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 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, 2017, cash was held in a total of two accounts maintained at one financial institution with an aggregate balance of approximately $27,000. Bank accounts are federally insured up to $250,000 by the FDIC. At December 31, 2017 and 2016, the aggregate cash balances were as follows: Balance at December 31, 2017 2016 Total bank balance $ 27,000 $ 335,000 FDIC insured (27,000 ) (250,000 ) 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 2018 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners. Income Taxes Pursuant to the provisions of Section 701 of the Internal Revenue Code, the Partnership is not subject to federal or state income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. The Partnership does not have any entity-level uncertain tax positions. In addition, the Partnership believes its tax status as a pass-through entity would be sustained under U.S. Federal, state or local tax examination. The Partnership files U.S. federal and various state income tax returns and is generally subject to examination by federal, state and local income tax authorities for three years from the filing of a tax return. 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 Per Equivalent Limited Partnership Unit The net loss 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.

Information Technology, Medical

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment')	12 Months Ended
	Dec. 31, 2017
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, 2017 and 2016, approximately $0 and $5,000 of remarketing fees were incurred, respectively. For the years ended December 31, 2017 and 2016, there were no remarketing fees paid with cash and/or netted against receivables due from such parties. 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, 2017 and 2016, was approximately $1,000 and $4,000, 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, 2017 was approximately $5,014,000 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, 2017 was approximately $13,881,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2017 was approximately $390,000 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, 2017 was approximately $2,729,000. 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. 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 2018 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, 2017: Years Ended December 31, Amount 2018 $ 680,000 2019 408,000 2020 114,000 2021 12,000 $ 1,214,000 Finance Leases The following lists the approximate components of the net investment in direct financing leases: At December 31, 2017 2016 Total minimum lease payments to be received $ 4,000 $ 44,000 Initial direct costs 1,000 1,000 Estimated residual value of leased equipment (unguaranteed) 9,000 20,000 Less: unearned income (1,000 ) (3,000 ) Net investment in direct finance leases $ 13,000 $ 62,000 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 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. 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, 2017: Percent of Total Risk Level 2017 2016 Low -% -% Moderate-Low -% -% Moderate -% -% Moderate-High 100% 100% High -% -% Net Finance lease receivable 100% 100% As of December 31, 2017, 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 2018 5,000 $ 5,000

Significant Customers

Significant Customers	12 Months Ended
	Dec. 31, 2017
Disclosure Text Block [Abstract]
Significant Customers	Lessees equal to or exceeding 10% of lease revenue: Years Ended December 31, 2017 2016 Alliant Techsystems 27% 20% L-3 Communications Holdings, Inc. 18% ** Cummins, Inc. 16% 27% International Paper Company 12% ** Cargill, Inc. 10% 15% Automatic Data Processing, Inc. 10% 11% ** Lessees equal to or exceeding 10% of net lease income receivable: At December 31, 2017 2016 Cargill, Inc. 41% 35% Alliant Techsystems 14% 16% Automatic Data Processing, Inc. 14% ** Cummins, Inc. 12% 27% ** Represents less than 10% of lease income receivable

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Disclosure Text Block [Abstract]
Related Party Transactions	Receivables/Payables As of December 31, 2017 and 2016, the Partnership’s related party receivables and payables are short term, unsecured, and non-interest bearing. 2017 2016 Reimbursable Expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of goods, supplies or services obtained and used by the general partner in connection with the administration and operation of the partnership from third parties unaffiliated with the General Partner. The amounts set forth on this table do not include expenses incurred in the offering of units. For the years ended December 31, 2017 and 2016, the Partnership was charged approximately $154,000 and $198,000 in other LP expense, respectively. $ 420,000 $ 478,000 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. For the year ended December 31, 2017, equipment acquisition fees earned for operating and finance leases were approximately $42,000 and $0, respectively. For the year ended December 31, 2016, equipment acquisition fees earned for operating and finance leases was approximately $30,000 and $0, respectively. $ 42,000 $ 30,000 Debt Placement Fee As compensation for arranging term debt to finance the acquisition of equipment to the Partnership, a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent the Partnership incurs such fees to third parties unaffiliated with the General Partner or the lender, with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. $ 8,000 $ 6,000 Equipment Management Fee A monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and similar equipment or (b) the sum of (i) two percent of the gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases and (iii) two percent of the gross lease revenues attributable to equipment subject to finance leases. $ 52,000 $ 46,000 Equipment Liquidation Fee With respect to each item of equipment sold by the general partner, 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. The payment of this fee is subordinated to the receipt by the Limited Partners of (i) a return of their capital contributions and 10% 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 is reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. During the years ended December 31, 2017 and 2016, the General Partner earned but waived approximately $1,000 and $2,000 of equipment liquidation fees, respectively. $ - $ - Partnership Interest and Distribution The General Partner has a present and continuing one percent interest of $1,000 in the Partnership’s item of income, gain, loss, deduction, credit, and tax preference. In addition, the General Partner receives one percent of Cash Available for Distribution until the Limited Partners have received distributions of Cash Available for Distribution equal to their Capital Contributions plus the 10% Cumulative Return and thereafter, the General Partner will receive 10% of Cash Available for Distribution. $ - $ 3,000

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2017
Disclosure Text Block [Abstract]
Notes Payable	Notes payable consisted approximately of the following: December 31, 2017 December 31, 2016 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 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 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 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 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 Installment note 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 3,000 16,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018 2,000 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 6,000 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 26,000 40,000 Installment note payable to bank; interest rate of 4.37%, due in quarterly installments of $42,121, including interest, with final payment in October 2019 321,000 471,000 Installment note payable to bank; interest rate of 4.47%, due in monthly installments of $9,935, including interest, with final payment in January 2019 126,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019 20,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $4,364, including interest, with final payment in January 2020 103,000 - Installment note payable to bank; interest rate of 5.93%, due in monthly installments of $1,425, including interest, with final payment in February 2020 35,000 - Installment note payable to bank; interest rate of 5.56%, due in monthly installments of $2,925, including interest, with final payment in June 2020 82,000 - Installment note payable to bank; interest rate of 5.25%, due in monthly installments of $253, including interest, with final payment in August 2020 8,000 - Installment note payable to bank; interest rate of 5.25% due in quarterly installments of $5,330, including interest, with final payment in August 2020 60,000 - Installment note payable to bank; interest rate of 4.87% due in quarterly installments of $4,785, including interest, with final payment in October 2020 63,000 - Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $327, including interest, with final payment in January 2021 73,000 - $ 928,000 $ 605,000 The notes are secured by specific equipment with a carrying value of approximately $1,267,000 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, 2017 are as follows: Years Ended December 31, Amount 2018 $ 479,000 2019 359,000 2020 84,000 2021 6,000 $ 928,000

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	12 Months Ended
	Dec. 31, 2017
Disclosure Text Block [Abstract]
Supplemental Cash Flow Information	No interest or principal on notes payable was paid by the Partnership during 2017 and 2016 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, 2017 2016 Debt assumed in connection with purchase of equipment $ 757,000 $ 617,000 Accrued expenses incurred in connection with purchase of technology equipment $ 90,000 $ - During the years ended December 31, 2017 and 2016, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $44,000 and $46,000, respectively. During the years ended December 31, 2017 and 2016, the Partnership wrote-off fully depreciated assets of approximately $230,000 and $5,000, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Disclosure Text Block [Abstract]
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 March 8, 2018, the Partnership has received approximately $53,000 of the approximate $77,000 sale proceeds and has recorded a reserve against the outstanding receivable of approximately $12,000. 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 $12,000 reserve and recorded as a bad debt recovery. As of March 8, 2018, 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. As Defendant defaulted on settlement agreement, CCC sought and obtained consent judgement from U.S. District Court for Northern District of Texas, Dallas Division on July 27, 2017 in the amount of $1.5 million, less $450,000 previously paid plus $6,757 in attorney fees, both Defendant and Cleary being jointly and severally liable for judgement amount. The court also vacated the September 21, 2016 settlement dismissal. On July 27, 2017 Defendant filed Chapter 11 in Northern District of Texas Dallas Division. On July 26, 2017 Legacy Texas Bank, a secured creditor of Defendant filed for a TRO from U.S. District Court for Northern District of Texas, Dallas Division on July 27, 2017 with request for appointment of trustee for operation of Defendant, which was granted and case has been converted to Chapter 7. Trustee is in process of negotiation in claims for estate with a distribution to creditors, including Commonwealth. While it is not anticipated that the trustee’s distribution to Commonwealth will fully cover the judgment, recovery may still be pursued directly against Cleary. As such, management believes that the foregoing may not result in any adverse financial impact on the Funds, but no assurance can be provided until the proceedings are 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. A Hearing 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. The decision of the Hearing Panel was stayed when it was appealed to FINRA's National Adjudicatory Council (the “NAC”) pursuant to FINRA Rule 9311. The NAC issued a decision that upheld the lower panel’s ruling and the bar took effect on August 23, 2016. Ms. Springsteen-Abbott appealed the NAC’s decision to the U.S. Securities and Exchange Commission (the “SEC”). On March 31, 2017, the SEC criticized that decision as so flawed that the SEC could not even review it, and remanded the matter back to FINRA for further consideration consistent with the SEC’s remand, but did not suggest any view as to a particular outcome. On July 21, 2017, FINRA reduced the list of 1,840 items totaling $208,000 to a remaining list of 84 items totaling $36,226 (which includes approximately $30,000 of continuing education expenses for personnel providing services to the Funds), and reduced the proposed fine from $100,000 to $50,000, but reaffirmed its position on the bar from the securities industry. Respondents promptly appealed FINRA’s revised ruling to the SEC. That appeal is pending as of April 2, 2018. All requested or allowed briefs have been filed with the SEC. Management believes that whatever the final resolution of this may be, it will not result in any material adverse financial impact on the Funds, although a final assurance cannot be provided until the legal matter is resolved.

Reconciliation of Amounts Repor

Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return	12 Months Ended
	Dec. 31, 2017
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, 2017 and 2016 as follows: Years Ended December 31, 2017 2016 Financial statement basis of net assets $ 489,468 $ 834,211 Tax basis of net assets (unaudited) (967,475 ) (462,204 ) Difference (unaudited) $ (1,456,943 ) $ (1,296,415 ) 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, 2017 2016 Net loss for financial reporting purposes to taxable loss $ (267,069 ) $ (383,478 ) Adjustments (unaudited) Gain (Loss) on sale of equipment 19,150 (6,757 ) Depreciation (280,413 ) (2,784 ) Amortization 8,463 7,885 Unearned lease income 22,004 15,824 Penalties 3,549 3,265 Bad debts 1,046 1,649 Other 69,250 1,513 Taxable loss on the Federal Partnership return (unaudited) $ (424,020 ) $ (362,883 ) 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, 2017
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, 2017 and 2016. There were no assets measured on a non-recurring basis at December 31, 2017 and 2016.
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, 2017 and 2016 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, 2017 and 2016 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, 2017 and 2016, 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 2016, the FASB issued Accounting Standards Update 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 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
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, 2017, cash was held in a total of two accounts maintained at one financial institution with an aggregate balance of approximately $27,000. Bank accounts are federally insured up to $250,000 by the FDIC. At December 31, 2017 and 2016, the aggregate cash balances were as follows: Balance at December 31, 2017 2016 Total bank balance $ 27,000 $ 335,000 FDIC insured (27,000 ) (250,000 ) 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 2018 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners.
Income Taxes	Pursuant to the provisions of Section 701 of the Internal Revenue Code, the Partnership is not subject to federal or state income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. The Partnership does not have any entity-level uncertain tax positions. In addition, the Partnership believes its tax status as a pass-through entity would be sustained under U.S. Federal, state or local tax examination. The Partnership files U.S. federal and various state income tax returns and is generally subject to examination by federal, state and local income tax authorities for three years from the filing of a tax return. 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 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 February 2018, the FASB issued Accounting Standards Update No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities- 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

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Table Text Block Supplement [Abstract]
Schedule of Cash and Cash Equivalents	Balance at December 31, 2017 2016 Total bank balance $ 27,000 $ 335,000 FDIC insured (27,000 ) (250,000 ) Uninsured amount $ - $ 85,000

Information Technology, Medic18

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Table Text Block Supplement [Abstract]
Schedule of future minimum rentals on non-cancellable operating leases	Years Ended December 31, Amount 2018 $ 680,000 2019 408,000 2020 114,000 2021 12,000 $ 1,214,000
Net investment in direct financing leases	At December 31, 2017 2016 Total minimum lease payments to be received $ 4,000 $ 44,000 Initial direct costs 1,000 1,000 Estimated residual value of leased equipment (unguaranteed) 9,000 20,000 Less: unearned income (1,000 ) (3,000 ) Net investment in direct finance leases $ 13,000 $ 62,000
Finance lease risk level	Percent of Total Risk Level 2017 2016 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 2018 5,000 $ 5,000

Significant Customers (Tables)

Significant Customers (Tables)	12 Months Ended
	Dec. 31, 2017
Table Text Block Supplement [Abstract]
Schedule of Lessees equal to or exceeding 10% of lease revenue	Years Ended December 31, 2017 2016 Alliant Techsystems 27% 20% L-3 Communications Holdings, Inc. 18% ** Cummins, Inc. 16% 27% International Paper Company 12% ** Cargill, Inc. 10% 15% Automatic Data Processing, Inc. 10% 11%
Schedule of Lessees equal to or exceeding 10% of lease income receivable	At December 31, 2017 2016 Cargill, Inc. 41% 35% Alliant Techsystems 14% 16% Automatic Data Processing, Inc. 14% ** Cummins, Inc. 12% 27%

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2017
Table Text Block Supplement [Abstract]
Schedule of Related Party Transactions	2017 2016 Reimbursable Expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of goods, supplies or services obtained and used by the general partner in connection with the administration and operation of the partnership from third parties unaffiliated with the General Partner. The amounts set forth on this table do not include expenses incurred in the offering of units. For the years ended December 31, 2017 and 2016, the Partnership was charged approximately $154,000 and $198,000 in other LP expense, respectively. $ 420,000 $ 478,000 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. For the year ended December 31, 2017, equipment acquisition fees earned for operating and finance leases were approximately $42,000 and $0, respectively. For the year ended December 31, 2016, equipment acquisition fees earned for operating and finance leases was approximately $30,000 and $0, respectively. $ 42,000 $ 30,000 Debt Placement Fee As compensation for arranging term debt to finance the acquisition of equipment to the Partnership, a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent the Partnership incurs such fees to third parties unaffiliated with the General Partner or the lender, with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. $ 8,000 $ 6,000 Equipment Management Fee A monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and similar equipment or (b) the sum of (i) two percent of the gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases and (iii) two percent of the gross lease revenues attributable to equipment subject to finance leases. $ 52,000 $ 46,000 Equipment Liquidation Fee With respect to each item of equipment sold by the general partner, 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. The payment of this fee is subordinated to the receipt by the Limited Partners of (i) a return of their capital contributions and 10% 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 is reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. During the years ended December 31, 2017 and 2016, the General Partner earned but waived approximately $1,000 and $2,000 of equipment liquidation fees, respectively. $ - $ - Partnership Interest and Distribution The General Partner has a present and continuing one percent interest of $1,000 in the Partnership’s item of income, gain, loss, deduction, credit, and tax preference. In addition, the General Partner receives one percent of Cash Available for Distribution until the Limited Partners have received distributions of Cash Available for Distribution equal to their Capital Contributions plus the 10% Cumulative Return and thereafter, the General Partner will receive 10% of Cash Available for Distribution. $ - $ 3,000

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2017
Table Text Block Supplement [Abstract]
Schedule of Notes Payable	December 31, 2017 December 31, 2016 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 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 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 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 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 Installment note 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 3,000 16,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018 2,000 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 6,000 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 26,000 40,000 Installment note payable to bank; interest rate of 4.37%, due in quarterly installments of $42,121, including interest, with final payment in October 2019 321,000 471,000 Installment note payable to bank; interest rate of 4.47%, due in monthly installments of $9,935, including interest, with final payment in January 2019 126,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019 20,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $4,364, including interest, with final payment in January 2020 103,000 - Installment note payable to bank; interest rate of 5.93%, due in monthly installments of $1,425, including interest, with final payment in February 2020 35,000 - Installment note payable to bank; interest rate of 5.56%, due in monthly installments of $2,925, including interest, with final payment in June 2020 82,000 - Installment note payable to bank; interest rate of 5.25%, due in monthly installments of $253, including interest, with final payment in August 2020 8,000 - Installment note payable to bank; interest rate of 5.25% due in quarterly installments of $5,330, including interest, with final payment in August 2020 60,000 - Installment note payable to bank; interest rate of 4.87% due in quarterly installments of $4,785, including interest, with final payment in October 2020 63,000 - Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $327, including interest, with final payment in January 2021 73,000 - $ 928,000 $ 605,000
Schedule of future aggregate payments of notes payable	Years Ended December 31, Amount 2018 $ 479,000 2019 359,000 2020 84,000 2021 6,000 $ 928,000

Supplemental Cash Flow Inform22

Supplemental Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2017
Table Text Block Supplement [Abstract]
Schedule of non-cash investing and financing activities	Years Ended December 31, 2017 2016 Debt assumed in connection with purchase of equipment $ 757,000 $ 617,000 Accrued expenses incurred in connection with purchase of technology equipment $ 90,000 $ -

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, 2017
Table Text Block Supplement [Abstract]
Tax Basis of the Partnership's Net Assets and Liabilities	Years Ended December 31, 2017 2016 Financial statement basis of net assets $ 489,468 $ 834,211 Tax basis of net assets (unaudited) (967,475 ) (462,204 ) Difference (unaudited) $ (1,456,943 ) $ (1,296,415 )
Schedule of Effective Income Tax Reconciliation	Years ended December 31, 2017 2016 Net loss for financial reporting purposes to taxable loss $ (267,069 ) $ (383,478 ) Adjustments (unaudited) Gain (Loss) on sale of equipment 19,150 (6,757 ) Depreciation (280,413 ) (2,784 ) Amortization 8,463 7,885 Unearned lease income 22,004 15,824 Penalties 3,549 3,265 Bad debts 1,046 1,649 Other 69,250 1,513 Taxable loss on the Federal Partnership return (unaudited) $ (424,020 ) $ (362,883 )

Business (Details)

Business (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Text Block [Abstract]
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania
Entity Incorporation, Date of Incorporation	Jan. 6, 2006
Partners' Capital Account, Units, Redeemed	9,930	24,748
Partners' Capital Account, Redemptions	$ 39,565	$ 97,574

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Text Block [Abstract]
Total bank balance	$ 27,000	$ 335,000
FDIC Insured	(27,000)	(250,000)
Uninsured Amount	$ 0	$ 85,000

Information Technology, Medic26

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details)	Dec. 31, 2017USD ($)
Text Block [Abstract]
Year Ended December 31, 2018	$ 680,000
Year Ended December 31, 2019	408,000
Year Ended December 31, 2020	114,000
Year Ended December 31, 2021	12,000
Total	$ 1,214,000

Information Technology, Medic27

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Text Block [Abstract]
Total minimum lease payments to be received	$ 4,000	$ 44,000
Initial direct costs	1,000	1,000
Estimated residual value of leased equipment (unguaranteed)	9,000	20,000
Less: unearned income	(1,000)	(3,000)
Net investment in finance leases	$ 13,000	$ 62,000

Information Technology, Medic28

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 2)	Dec. 31, 2017	Dec. 31, 2016
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, 2017USD ($)
Text Block [Abstract]
Year Ended December 31, 2018	$ 5,000
Total	$ 5,000

Information Technology, Medic30

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Text Block [Abstract]
Remarketing Fees Incurred	$ 0	$ 5,000
Equipment Shared	5,014,000	4,517,000
Debt Shared	390,000	10,060,000
Total Shared Equipment	13,881,000	33,000
Outstanding Debt Total	$ 2,729,000	$ 96,000

Significant Customers (Details)

Significant Customers (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cummins, Inc.
Percent Lease Revenue	16.00%	27.00%
Alliant Techsystems
Percent Lease Revenue	27.00%	20.00%
Cargill, Inc.
Percent Lease Revenue	10.00%	15.00%
Automatic Data Processing, Inc.
Percent Lease Revenue	10.00%	11.00%
L-3 Communications Holdings, Inc.
Percent Lease Revenue	18.00%	0.00%
International Paper Company
Percent Lease Revenue	12.00%	0.00%

Significant Customers (Details

Significant Customers (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cargill, Inc.
Percent Lease Income Receivable	41.00%	35.00%
Alliant Techsystems
Percent Lease Income Receivable	14.00%	16.00%
Automatic Data Processing, Inc.
Percent Lease Income Receivable	14.00%	0.00%
Cummins, Inc.
Percent Lease Income Receivable	12.00%	27.00%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Text Block [Abstract]
Reimbursable Expenses	$ 420,000	$ 478,000
Other LP Expense	42,000	30,000
Debt placement fees	8,000	6,000
Equipment Management Fee	52,000	46,000
Equipment liquidation fee	0	0
Partnership Interest and Distribution	$ 0	$ 3,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Long-term Debt, Gross	$ 928,000	$ 605,000
Note 1
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	$ 0	8,000
Note 2
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	$ 0	21,000
Note 3
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	$ 0	23,000
Note 4
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	$ 0	1,000
Note 5
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	$ 0	10,000
Note 6
Debt Instrument, Description	Installment note 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	$ 3,000	16,000
Note 7
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	$ 2,000	3,000
Note 8
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	$ 6,000	12,000
Note 9
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	$ 26,000	40,000
Note 10
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.37%, due in quarterly installments of $42,121, including interest, with final payment in October 2019
Long-term Debt, Gross	$ 321,000	471,000
Note 11
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.47%, due in monthly installments of $9,935, including interest, with final payment in January 2019
Long-term Debt, Gross	$ 126,000	0
Note 12
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019
Long-term Debt, Gross	$ 20,000	0
Note 13
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $4,364, including interest, with final payment in January 2020
Long-term Debt, Gross	$ 103,000	0
Note 14
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.93%, due in monthly installments of $1,425, including interest, with final payment in February 2020
Long-term Debt, Gross	$ 35,000	0
Note 15
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.56%, due in monthly installments of $2,925, including interest, with final payment in June 2020
Long-term Debt, Gross	$ 82,000	0
Note 16
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.25%, due in monthly installments of $253, including interest, with final payment in August 2020
Long-term Debt, Gross	$ 8,000	0
Note 17
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.25% due in quarterly installments of $5,330, including interest, with final payment in August 2020
Long-term Debt, Gross	$ 60,000	0
Note 18
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.87% due in quarterly installments of $4,785, including interest, with final payment in October 2020
Long-term Debt, Gross	$ 63,000	0
Note 19
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $327, including interest, with final payment in January 2021
Long-term Debt, Gross	$ 73,000	$ 0

Notes Payable (Details 1)

Notes Payable (Details 1)	Dec. 31, 2017USD ($)
Text Block [Abstract]
Year Ended December 31, 2018	$ 479,000
Year Ended December 31, 2019	359,000
Year Ended December 31, 2020	84,000
Year Ended December 31, 2021	6,000
Long-term Debt	$ 928,000

Supplemental Cash Flow Inform36

Supplemental Cash Flow Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Text Block [Abstract]
Debt assumed in connection with purchase of equipment	$ 757,000	$ 617,000
Accrual for distribution to partners paid in January 2017	$ 90,000	$ 88,000

Supplemental Cash Flow Inform37

Supplemental Cash Flow Information (Details Narrative)	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Text Block [Abstract]
Fully Amortized Fees Written Off	44,000	46,000
Allowance for Doubtful Accounts Receivable, Write-offs		$ 0
Fully Depreciated Equipment Wrote-Off	$ 230,000	$ 5,000

Reconciliation of Amounts Rep38

Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Text Block [Abstract]
Financial statement basis of net assets	$ 489,468	$ 834,211	$ 1,581,334
Tax basis of net assets (unaudited)	(967,475)	(462,204)
Difference (unaudited)	$ (1,456,943)	$ (1,296,415)

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, 2017	Dec. 31, 2016
Text Block [Abstract]
Net (loss) income for financial reporting purposes to taxable loss	$ (267,069)	$ (383,478)
Adjustments (unaudited)
Gain (Loss) on sale of equipment	19,150	(6,757)
Depreciation	(280,413)	(2,784)
Amortization	8,463	7,885
Unearned Lease Income	22,004	15,824
Penalties	3,549	3,265
Bad Debts	1,046	1,649
Other	69,250	1,513
Taxable (loss) income on the Federal Partnership return (unaudited)	$ (424,020)	$ (362,883)