Commonwealth Income & Growth Fund VI (CIGF6) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2019shares
Document and Entity Information:
Entity Registrant Name	Commonwealth Income & Growth Fund VI
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Entity Central Index Key	0001351901
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	0
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 5,990	$ 5,863
Lease income receivable, net of reserve of approximately $33,000 at June 30, 2019 and December 31, 2018	79,061	82,957
Accounts receivable, Commonwealth Capital Corp., net	153,455	156,870
Other receivables, net of reserve of approximately $12,000 at June 30, 2019 and December 31, 2018	9,609	25,834
Prepaid expenses	863	3,959
Current Assets	248,978	275,483
Equipment, at cost	4,834,101	4,899,399
Accumulated depreciation	(4,219,727)	(4,018,025)
Technology equipment, net	614,374	881,374
Equipment acquisition costs and deferred expenses, net of accumulated amortization of approximately $59,000 and $64,000 at June 30, 2019 and December 31, 2018, respectively	15,030	27,967
Total Assets	878,382	1,184,824
LIABILITIES
Accounts payable	153,500	159,643
Accounts payable, CIGF, Inc., net	133,378	148,482
Other accrued expenses	27,651	5,058
Unearned lease income	27,413	15,933
Notes payable	347,324	554,134
Total Liabilities	689,266	883,250
COMMITMENTS AND CONTINGENCIES
PARTNERS' CAPITAL
General Partner	1,000	1,000
Limited Partners	188,116	300,574
Total Partners' Capital	189,116	301,574
Total Liabilities and Partners' Capital	$ 878,382	$ 1,184,824

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Reserve for doubtful lease income receivable	$ 33,000	$ 33,000
Other receivables reserve, net	$ 12,000	$ 12,000

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue
Lease	$ 185,159	$ 227,663	$ 372,756	$ 487,107
Interest and other	53	15	2,554	823
Sales and property taxes	9,402	0	15,229	0
Gain on sale of equipment	125	11,403	125	30,687
Total revenue and gain on sale of equipment	194,739	239,081	390,664	518,617
Expenses
Operating, excluding depreciation	72,975	61,503	176,606	220,211
Equipment management fee, General Partner	9,258	11,383	18,637	24,451
Interest	5,723	10,440	12,715	20,702
Depreciation	132,539	147,623	266,999	313,759
Amortization of equipment acquisition costs and deferred expenses	6,076	8,134	12,938	16,129
Sales and property taxes	9,402	0	15,229	0
Total expenses	235,973	239,083	503,124	595,252
Net loss	(41,234)	(2)	(112,460)	(76,635)
Net loss allocated to Limited Partners	$ (41,234)	$ (2)	$ (112,460)	$ (76,635)
Net loss per equivalent Limited Partnership unit	$ (0.02)	$ 0	$ (0.06)	$ (0.04)
Weighted average number of equivalent Limited Partnership units outstanding during the period	1,744,331	1,750,871	1,744,331	1,753,214

Condensed Statement of Partners

Condensed Statement of Partners' Capital - USD ($)	General Partners	Limited Partners	Total
Partners' Capital at Dec. 31, 2017	$ 1,000	$ 488,468	$ 489,468
Partners' Capital Account, Units at Dec. 31, 2017	50	1,757,396
Net loss		$ (76,635)	(76,635)
Redemptions		$ (25,532)	(25,532)
Redemptions, Units		(6,526)
Partners' Capital at Jun. 30, 2018	$ 1,000	$ 386,301	387,301
Partners' Capital Account, Units at Jun. 30, 2018	50	1,750,870
Partners' Capital at Dec. 31, 2018	$ 1,000	$ 300,574	301,574
Partners' Capital Account, Units at Dec. 31, 2018	50	1,744,254
Net loss		$ (112,460)	(112,460)
Partners' Capital at Jun. 30, 2019	$ 1,000	$ 188,116	$ 189,116
Partners' Capital Account, Units at Jun. 30, 2019	50	1,744,254

Condensed Statements of Cash Fl

Condensed Statements of Cash Flow - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net cash provided by operating activities	$ 2	$ 37,114
Cash flows from investing activities
Capital expenditures	0	(13,091)
Payments received from finance leases	0	4,814
Equipment acquisition fees paid to General Partner	0	(2,623)
Net proceeds from the sale of equipment	125	39,481
Net cash provided by investing activities	125	28,581
Cash flows from financing activities
Redemptions	0	(25,532)
Debt placement fee	0	(525)
Net cash used in financing activities	0	(26,057)
Net increase in cash and cash equivalents	127	39,638
Cash and cash equivalents beginning of period	5,863	24,583
Cash and cash equivalents end of period	$ 5,990	$ 64,221

Business

Business	6 Months Ended
	Jun. 30, 2019
Disclosure Text Block [Abstract]
Business	Commonwealth Income & Growth Fund VI (“CIGF6” or the “Partnership” or the “Fund”) is a limited partnership organized in the Commonwealth of Pennsylvania on January 6, 2006. The Partnership offered for sale up to 2,500,000 units of the limited partnership at the purchase price of $20 per unit (the “offering”). The Partnership reached the minimum amount in escrow and commenced operations on May 10, 2007. The offering terminated on March 6, 2009 with 1,810,311 units sold for a total of approximately $36,000,000 in limited partner contributions. The Partnership used the proceeds of the offering to acquire, own and lease various types of information technology equipment and other similar capital equipment, which will be leased primarily to U.S. corporations and institutions. Commonwealth Capital Corp. (“CCC”), on behalf of the Partnership and other affiliated partnerships, acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various partnerships that it manages based on certain risk factors. The Partnership’s General Partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly owned subsidiary of CCC. CCC is a member of the Institute for Portfolio Alternatives (“IPA”) and the Equipment Leasing and Finance Association (“ELFA”). Approximately ten years after the commencement of operations, the Partnership intends to sell or otherwise dispose of all of its equipment, make final distributions to partners, and to dissolve. Unless sooner terminated or extended pursuant to the terms of its Limited Partnership Agreement, the Partnership will continue until December 31, 2021. Liquidity and Going Concern The General Partner and CCC have committed to fund, either through cash contributions and/or forgiveness of indebtedness, any necessary operational cash shortfalls of the Partnership through August 14, 2020. The General Partner will continue to reassess the funding of limited partner distributions throughout 2019 and will continue to waive certain fees. The General Partner and CCC will also determine if related party payables owed to the Partnership may be deferred (if deemed necessary in an effort to further increase the Partnership’s cash flow. If available cash flow or net disposition proceeds are insufficient to cover the Partnership expenses and liabilities on a short and long term basis, the Partnership may attempt to obtain additional funds by disposing of or refinancing equipment, or by borrowing within its permissible limits. The Partnership has incurred recurring losses and has a working capital deficit at June 30, 2019. The Partnership believes it has alleviated these conditions as discussed above. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Disclosure Text Block [Abstract]
Summary of Significant Accounting Policies	Basis of Presentation The financial information presented as of any date other than December 31, 2018 has been prepared from the books and records without audit. The following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Financial information as of December 31, 2018 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Operating results for the six months ended June 30, 2019 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2019. Disclosure of Fair Value of Financial Instruments Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop estimated fair value. Cash and cash equivalents, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of June 30, 2019 and December 31, 2018 due to the 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 June 30, 2019 and December 31, 2018 approximates the carrying value of these instruments, due to the interest rates on the debt approximating current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value. Cash and cash equivalents We consider cash equivalents to be highly liquid investments with an original maturity of 90 days or less. At June 30, 2019, cash and cash equivalents were held in one account maintained at one financial institution with an aggregate balance of approximately $9,000. Bank accounts are federally insured up to $250,000 by the FDIC. At June 30, 2019, the total cash balance was as follows: At June 30, 2019 Balance Total bank balance $ 9,000 FDIC insured (9,000 ) Uninsured amount $ - 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 2019 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners. Recent Accounting Pronouncements Adopted In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors In March 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 March 2019, the FASB issued Accounting Standards Update No. 2019-01, Leases (Topic 842) Codification Improvements — ● Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers (Issue 1). ● Presentation on the statement of cash flows—sales-type and direct financing leases (Issue 2). ● Transition disclosures related to Topic 250, Accounting Changes and Error Corrections (Issue 3). We adopted Topic 842 at the required adoption date of January 1, 2019. The Partnership concluded that the sales taxes and other similar taxes collected from the lessees are recorded in the current period on the Condensed Statement of Operations as gross revenues and expenses. As permitted by the guidance, we elected the practical expedient that allows us not to restate comparative periods in the financial statements. Upon adoption of this update, there was no significant change to the Partnership accounting.

Information Technology, Medical

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (''Equipment'')	6 Months Ended
	Jun. 30, 2019
Disclosure Text Block [Abstract]
Information and other Technology, Inventory Management Equipment and other Capital Equipment	The Partnership is the lessor of equipment under leases with periods that generally will range from 12 to 48 months. In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee. Remarketing fees will be paid to the leasing companies from which the Partnership purchases leases. These are fees that are earned by the leasing companies when the initial terms of the lease have been met. The General Partner believes that this strategy adds value since it entices the leasing company to remain actively involved with the lessees for potential extensions, remarketing or sale of equipment. This strategy is designed to minimize any conflicts the leasing company may have with a new lessee and may assist in maximizing overall portfolio performance. The remarketing fee is tied into lease performance thresholds and is a factor in the negotiation of the fee. Remarketing fees incurred in connection with lease extensions are accounted for as operating costs. Remarketing fees incurred in connection with the sale of equipment are included in the gain or loss calculations. For the six months ended June 30, 2019 and 2018, there were no remarketing fees incurred and/or paid with cash or netted against receivables due from such parties, respectively. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Gains from lease termination included in lease revenue for the six months ended June 30, 2019 and 2018, was approximately $0 and $500, 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 June 30, 2019 was approximately $2,710,000 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 June 30, 2019 was approximately $9,349,000. The Partnership’s share of the outstanding debt associated with this equipment at June 30, 2019 was approximately $139,000 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 June 30, 2019 was approximately $1,320,000. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2018 was approximately $4,774,000 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, 2018 was approximately $13,440,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2018 was approximately $197,000 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, 2018 was approximately $1,701,000. 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 fund an opportunity to acquire additional assets and revenue streams, while allowing the fund to remain diversified and reducing its overall risk with respect to one portfolio. As additional investment opportunities arise during the remainder of 2019, the Partnership expects total shared equipment and related debt to trend higher as the Partnership builds its portfolio. The following is a schedule of approximate future minimum rentals on non-cancellable operating leases at June 30, 2019: For the period ended December Amount Six months ended December 31, 2019 $ 256,000 Year Ended December 31, 2020 139,000 Year Ended December 31, 2021 21,000 $ 416,000

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Disclosure Text Block [Abstract]
Related Party Transactions	Receivables/Payables As of June 30, 2019 and December 31, 2018, the Company’s related party receivables and payables are short term, unsecured and non-interest bearing. Six months ended June 30, 2019 2018 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. In addition, the General Partner and its affiliates are entitled to reimbursement of certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. For the six months ended June 30, 2019 and 2018, the Partnership was charged approximately $52,000 and $78,000 in Other LP expense, respectively. $ 143,000 $ 210,000 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. $ - $ 3,000 Equipment management fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of this fee we will receive. $ 19,000 $ 24,000 Debt placement fee As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. We do not intend to use more than 30% leverage overall in our portfolio. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage. $ - $ 500

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2019
Disclosure Text Block [Abstract]
Notes Payable	Notes payable consisted of the following approximate amounts: June 30, 2019 December 31, 2018 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 $ - 10,000 Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019 - 1,000 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 3,000 11,000 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 83,000 164,000 Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019 5,000 11,000 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 30,000 55,000 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 11,000 19,000 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 34,000 50,000 Installment note payable to bank; interest rate of 5.25%, due in monthly installments of $253, including interest, with final payment in August 2020 3,000 5,000 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 26,000 35,000 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 28,000 36,000 Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $6,157, including interest, with final payment in January 2021 41,000 52,000 Installment note payable to bank; interest rate of 6.33%, due in quarterly installments of $5,805, including interest, with final payment in January 2021 38,000 48,000 Installment note payable to bank; interest rate of 6.66%, due in quarterly installments of $2,774, including interest, with final payment in January 2021 18,000 23,000 Installment note payable to bank; interest rate of 6.66%, due in monthly installments of $665, including interest, with final payment in March 2021 13,000 17,000 Installment note payable to bank; interest rate of 5.33%, due in monthly installments of $582, including interest, with final payment in August 2021 14,000 17,000 $ 347,000 $ 554,000 The notes are secured by specific equipment with a carrying value of approximately $603,000 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 maturities of notes payable for each of the periods subsequent to June 30, 2019 are as follows: Amount Six months ended December 31, 2019 $ 195,000 Year ended December 31, 2020 131,000 Year ended December 31, 2021 21,000 $ 347,000

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2019
Disclosure Text Block [Abstract]
Supplemental Cash Flow Information	No interest or principal on notes payable was paid by the Partnership during 2019 and 2018 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. Other noncash activities included in the determination of net loss are as follows: Six months ended June 30, 2019 2018 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 207,000 $ 190,000 Noncash investing and financing activities include the following: Six months ended June 30, 2019 2018 Debt assumed in connection with purchase of equipment $ - $ 52,000 During the six months ended June 30, 2019 and 2018, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $1,000 and $2,000, respectively. During the three months ended June 30, 2019 and 2018, the Partnership wrote-off fully depreciated equipment of approximately $0 and $655,000, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
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 August 14, 2019, the Partnership has received approximately $62,000 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 August 14, 2019, the Partnership received approximately $9,000 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 the Defendant filed for a TRO in the U.S. District Court of the Northern District of Texas, Dallas Division. Included with the TRO filing was a request for appointment of trustee for operation of Defendant, which was granted and the case converted to Chapter 7. On December 18, 2018 the Bankruptcy Court entered final order and issued its last payment to CCC in March 2019 of approximately $43,000, of which the Partnership’s share was approximately $700. Although the trustee’s final distribution to Commonwealth did not fully satisfy the judgment, recovery may still be pursued directly against Cleary. As such, management believes that the foregoing will 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 had 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 August 14, 2019. All requested or allowed briefs have been filed with the SEC. Management believes that whatever 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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Policy Text Block [Abstract]
Basis of Presentation	The financial information presented as of any date other than December 31, 2018 has been prepared from the books and records without audit. The following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Financial information as of December 31, 2018 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Operating results for the six months ended June 30, 2019 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2019.
Disclosure of Fair Value of Financial Instruments	Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop estimated fair value. Cash and cash equivalents, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of June 30, 2019 and December 31, 2018 due to the 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 June 30, 2019 and December 31, 2018 approximates the carrying value of these instruments, due to the interest rates on the debt approximating current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value.
Cash and Cash Equivalents	We consider cash equivalents to be highly liquid investments with an original maturity of 90 days or less. At June 30, 2019, cash and cash equivalents were held in one account maintained at one financial institution with an aggregate balance of approximately $9,000. Bank accounts are federally insured up to $250,000 by the FDIC. At June 30, 2019, the total cash balance was as follows: At June 30, 2019 Balance Total bank balance $ 9,000 FDIC insured (9,000 ) Uninsured amount $ - 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 2019 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners.
Recent Accounting Pronouncements Not Yet Adopted	In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors In March 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 March 2019, the FASB issued Accounting Standards Update No. 2019-01, Leases (Topic 842) Codification Improvements — ● Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers (Issue 1). ● Presentation on the statement of cash flows—sales-type and direct financing leases (Issue 2). ● Transition disclosures related to Topic 250, Accounting Changes and Error Corrections (Issue 3). We adopted Topic 842 at the required adoption date of January 1, 2019. The Partnership concluded that the sales taxes and other similar taxes collected from the lessees are recorded in the current period on the Condensed Statement of Operations as gross revenues and expenses. As permitted by the guidance, we elected the practical expedient that allows us not to restate comparative periods in the financial statements. Upon adoption of this update, there was no significant change to the Partnership accounting.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Table Text Block Supplement [Abstract]
Schedule of cash and cash equivalents	At June 30, 2019 Balance Total bank balance $ 9,000 FDIC insured (9,000 ) Uninsured amount $ -

Information Technology, Medic_2

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Table Text Block Supplement [Abstract]
Schedule of future minimum rentals on non-cancellable operating leases	For the period ended December Amount Six months ended December 31, 2019 $ 256,000 Year Ended December 31, 2020 139,000 Year Ended December 31, 2021 21,000 $ 416,000

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Table Text Block Supplement [Abstract]
Schedule of related party transactions	Six months ended June 30, 2019 2018 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. In addition, the General Partner and its affiliates are entitled to reimbursement of certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. For the six months ended June 30, 2019 and 2018, the Partnership was charged approximately $52,000 and $78,000 in Other LP expense, respectively. $ 143,000 $ 210,000 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. $ - $ 3,000 Equipment management fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of this fee we will receive. $ 19,000 $ 24,000 Debt placement fee As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. We do not intend to use more than 30% leverage overall in our portfolio. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage. $ - $ 500

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2019
Table Text Block Supplement [Abstract]
Notes payable	June 30, 2019 December 31, 2018 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 $ - 10,000 Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019 - 1,000 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 3,000 11,000 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 83,000 164,000 Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019 5,000 11,000 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 30,000 55,000 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 11,000 19,000 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 34,000 50,000 Installment note payable to bank; interest rate of 5.25%, due in monthly installments of $253, including interest, with final payment in August 2020 3,000 5,000 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 26,000 35,000 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 28,000 36,000 Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $6,157, including interest, with final payment in January 2021 41,000 52,000 Installment note payable to bank; interest rate of 6.33%, due in quarterly installments of $5,805, including interest, with final payment in January 2021 38,000 48,000 Installment note payable to bank; interest rate of 6.66%, due in quarterly installments of $2,774, including interest, with final payment in January 2021 18,000 23,000 Installment note payable to bank; interest rate of 6.66%, due in monthly installments of $665, including interest, with final payment in March 2021 13,000 17,000 Installment note payable to bank; interest rate of 5.33%, due in monthly installments of $582, including interest, with final payment in August 2021 14,000 17,000 $ 347,000 $ 554,000
Aggregate maturities of notes payable	Amount Six months ended December 31, 2019 $ 195,000 Year ended December 31, 2020 131,000 Year ended December 31, 2021 21,000 $ 347,000

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2019
Table Text Block Supplement [Abstract]
Other noncash activities	Six months ended June 30, 2019 2018 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 207,000 $ 190,000
Noncash investing and financing activities	Six months ended June 30, 2019 2018 Debt assumed in connection with purchase of equipment $ - $ 52,000

Business (Details)

Business (Details)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	Jun. 30, 2019USD ($)
Accounting Policies [Abstract]
Total bank balance	$ 9,000
FDIC insured	(9,000)
Uninsured amount	$ 0

Information Technology, Medic_3

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details)	Jun. 30, 2019USD ($)
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment
Six months ended December 31, 2019	$ 256,000
Year Ended December 31, 2020	139,000
Year Ended December 31, 2021	21,000
Total	$ 416,000

Information Technology, Medic_4

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment
Equipment shared	$ 1,840,000	$ 1,840,000
Total shared equipment	6,789,000	6,789,000
Debt shared	139,000	197,000
Outstanding debt total	$ 1,320,000	$ 1,701,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions [Abstract]
Reimbursable expenses	$ 143,000	$ 210,000
Equipment acquisition fee	0	3,000
Equipment management fee	19,000	24,000
Debt placement fee	$ 0	$ 500

Notes Payable (Details)

Notes Payable (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Long-term debt, gross	$ 347,000	$ 554,000
Note 1
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	$ 0	10,000
Note 2
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	$ 0	1,000
Note 3
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	$ 3,000	11,000
Note 4
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	$ 83,000	164,000
Note 5
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	$ 5,000	11,000
Note 6
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	$ 30,000	55,000
Note 7
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	$ 11,000	19,000
Note 8
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	$ 34,000	50,000
Note 9
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	$ 3,000	5,000
Note 10
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	$ 26,000	35,000
Note 11
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	$ 28,000	36,000
Note 12
Debt instrument, description	Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $6,157, including interest, with final payment in January 2021
Long-term debt, gross	$ 41,000	52,000
Note 13
Debt instrument, description	Installment note payable to bank; interest rate of 6.33%, due in quarterly installments of $5,805, including interest, with final payment in January 2021
Long-term debt, gross	$ 38,000	48,000
Note 14
Debt instrument, description	Installment note payable to bank; interest rate of 6.66%, due in quarterly installments of $2,774, including interest, with final payment in January 2021
Long-term debt, gross	$ 18,000	23,000
Note 15
Debt instrument, description	Installment note payable to bank; interest rate of 6.66%, due in monthly installments of $665, including interest, with final payment in March 2021
Long-term debt, gross	$ 13,000	17,000
Note 16
Debt instrument, description	Installment note payable to bank; interest rate of 5.33%, due in monthly installments of $582, including interest, with final payment in August 2021
Long-term debt, gross	$ 14,000	$ 17,000

Notes Payable (Details 1)

Notes Payable (Details 1)	Jun. 30, 2019USD ($)
Notes Payable [Abstract]
Six months ended December 31, 2019	$ 195,000
Year ended December 31, 2020	131,000
Year ended December 31, 2021	21,000
Long-term debt	$ 347,000

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank	$ 207,000	$ 190,000

Supplemental Cash Flow Inform_4

Supplemental Cash Flow Information (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Debt assumed in connection with purchase of equipment	$ 0	$ 52,000

Supplemental Cash Flow Inform_5

Supplemental Cash Flow Information (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Fully amortized fees written off	$ 1,000	$ 2,000
Fully depreciated equipment written off	$ 0	$ 655,000