FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007MARCH 31, 2008

Commonwealth Income & Growth Fund V (the “Partnership”) is a limited partnership organized in the Commonwealth of Pennsylvania on May 19, 2003.  The Partnership offered for sale up to 1,250,000 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 March 14, 2005.  As of February 24, 2006, the Partnership was fully subscribed.

The Partnership used the proceeds of the Offering to acquire, own and lease various types of computer information technology (I.T.) 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, will acquireacquires computer equipment subject to associated debt obligations and lease agreements and allocateallocates a participation in the cost, debt and lease revenue to the various partnerships based on certain risk factors.

The Partnership’s General Partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly owned subsidiary of CCC.  CCC is a member of the Investment Program Association (IPA), Financial Planning Association (FPA), and the Equipment Leasing and Finance Association (ELFA).  Approximately ten years after the commencement of operations, the Partnership intends to sell or otherwise dispose of all of its computer equipment, make final distributions to partners and to dissolve.  Unless sooner terminated, the Partnership will continue until December 31, 2015.

The financial information presented as of any date other than December 31, 20062007 has been prepared from the books and records without audit.  Financial information as of December 31, 20062007 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles.principles to be included in audited financial statements.  In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included.  For further information regarding the Partnership’s accounting policies, refer to the financial statements and related notes included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2006.2007.  Operating results for the ninethree months ended September 30, 2007March 31, 2008 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2007.2008.

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 an 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 an 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.  The Partnership recordeddetermined that no impairment chargesexisted as of approximately $41,000 (included in depreciation expense) to reflect the assets at their current estimated net realizable value for the period ended September 30,March 31, 2008 and March 31, 2007.

Depreciation on computer equipment for financial statement purposes is based on the straight-line method over estimated useful lives of four years.

The net income (loss) per equivalent limited partnership unit is computed based upon net income (loss) allocated to the limited partners and the weighted average number of equivalent units outstanding during the period.

The Partnership is the lessor of equipment under operating leases with periods ranging from 1611 to 36 months.  In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee.

Through September 30, 2007,March 31, 2008, the Partnership has only entered into operating leases.  Lease revenue is recognized on the monthly straight-line basis which is generally in accordance with the terms of the operating lease agreements.  The company’s leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index.

Remarketing fees are 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 and the equipment is re-leased or sold.  The General Partner believes that this strategy adds value since it entices the leasing company to "stay with the lease" for potential extensions, remarketing or sale of equipment.  This strategy potentially minimizes any conflicts the leasing company may have with a potential new lease and will potentially assist in maximizing overall portfolio performance.  The remarketing fee is tied into lease performance thresholds and is factored 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 computer equipment are included in our gain or loss calculations.  For the ninethree months ended September 30, 2007 and 2006,March 31, 2008 remarketing fees were incurred in the amountsamount of $1,000 and $0, respectively.approximately $3,000.  No remarketing fees were incurred for the three months ended March 31, 2007.

The Partnership’s share of the computer equipment in which it participates with other partnerships at September 30, 2007March 31, 2008 and December 31, 20062007 was approximately $7,977,000$8,693,000 and $3,923,000,$8,381,000, respectively, which is included in the Partnership’s fixed assets on its balance sheet.  The total cost of the equipment shared by the Partnership with other partnerships at September 30, 2007March 31, 2008 and December 31, 20062007 was approximately $15,750,000$19,172,000 and $8,188,000,$17,371,000, respectively.  The Partnership’s share of the outstanding debt associated with this equipment at September 30, 2007March 31, 2008 and December 31, 20062007 was $1,907,000$1,456,000 and $526,000,$1,683,000, respectively.  The total outstanding debt at September 30, 2007March 31, 2008 and December 31, 20062007 was $3,623,000$2,745,000 and $1,148,000,$3,187,000, respectively.

The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of supplies and 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 for certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership.  During the ninethree months ended September 30,March 31, 2008 and 2007, and 2006, the Partnership recorded approximately $925,000$376,000 and $678,000,$163,000, respectively, for reimbursement of expenses to the General Partner.

Offering costs are payments for selling commissions, dealer manager fees, professional fees and other offering expenses relating to the syndication of the Partnership’s units.  Selling commissions are 8% of the partners’ contributed capital and dealer manager fees are 2% of the partners’ contributed capital.  These costs have been deducted from partnership capital in the accompanying financial statements.

As compensation for arranging term debt to finance the acquisition of equipment by the Partnership, the General Partner is paid a fee equal to 1% 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 and no such fee will be paid with respect to borrowings from the General Partner or its affiliates.  There were no debt placement fees earned by the General Partner for the three months ended March 31, 2008.  For the ninethree months ended September 30,March 31, 2007 and 2006, debt placement fees of approximately $22,000 and $16,000, respectively,$6,000, were earned by the General Partner.

The General Partner is entitled to be paid a monthly fee equal to the lesser of (i) the fees which would be charged by an independent third party for similar services for similar equipment or (ii) the sum of (a) two percent of (1) the gross lease revenues attributable to equipment which is subject to full payout net leases which contain net lease provisions plus (2) the purchase price paid on conditional sales contracts as received by the Partnership and (b) 5% of the gross lease revenues attributable to equipment which is subject to operating and capital leases.  For the ninethree months ended September 30,March 31, 2008, and 2007, and 2006, equipment management fees of approximately $242,000,$86,000, and $120,000,$69,000, respectively, were earned by the General Partner.

With respect to each item of equipment sold by the General Partner (other than in connection with a conditional sales contract), a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price for such equipment is payable to the General Partner.  The payment of such fee is subordinated to the receipt by the limited partners of the net disposition proceeds from such sale in accordance with the Partnership Agreement.  Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties.  For the ninethree months ended September 30, 2007,March 31, 2008, equipment liquidation fees of approximately $200 were earned by the General Partner.  For the ninethree months ended September 30, 2006March 31, 2007 there were no equipment liquidation fees earned by the General Partner.

Notes payable consisted of the following:

No interest or principal on notes payable was paid by the Partnership because direct payment was made by lessee to the bank in lieu of collection of lease income and payment of interest and principal by the Partnership.

Certain statements within this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the “safe harbor” provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. You can identify these statements by the use of words such as “may,” “will,” “could,” “anticipate,” “believe,” “estimate,” “expects,” “intend,” “predict” or “project” and variations of these words or comparable words or phrases of similar meaning. These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected.

The Partnership's discussion and analysis of its financial condition and results of operations are based upon its financial statements which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Partnership bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The Partnership believes that its critical accounting policies affect its more significant judgments and estimates used in the preparation of its financial statements.

Commonwealth Capital Corp., on behalf of the Partnership and other affiliated partnerships, acquires computer equipment subject to associated debt obligations and lease revenue and allocates a participation in the cost, debt and lease revenue to the various partnerships based on certain risk factors. Depreciation on computer equipment for financial statement purposes is based on the straight-line method over estimated useful lives of four years.

The Partnership’s primary source of capital for the ninethree months ended September 30,March 31, 2008 and 2007 was cash provided by operating activities of approximately $2,588,000.  For$734,000 and $1,312,000, respectively.  During the ninethree months ended September 30, 2006, the Partnership’s primary source of capital was from contributions of approximately $5,255,000.  EquipmentMarch 31, 2008 and 2007, equipment was purchased in the amount of approximately $3,563,000 during the nine months ended September 30, 2007$513,000 and $887,000, respectively, and distributions were paid in the amount of approximately $1,875,000.  Equipment in the amount of approximately $5,821,000 was purchased during the nine months ended September 30, 2006 and distributions were paid in the amount of approximately $1,818,000.$625,000 for each period.

The Partnership intends to invest approximately $6,200,000$2,500,000 in additional equipment for the remainder of 2007.2008.  The acquisition of this equipment will be funded by debt financing fromand cash flows from lease rental payments.

For the ninethree months ended September 30, 2007,March 31, 2008, the Partnership generated cash flows from operating activities in the amount of approximately $2,588,000,$734,000, which includes a net loss of approximately $217,000,$93,000, and depreciation and amortization expenses of approximately $3,899,000.$1,441,000.  Other non-cash activities included in the determination of net income include direct payments of lease income by lessees to banks of approximately $1,266,000.$495,000.

For the ninethree months ended September 30, 2006,March 31, 2007, the Partnership generated cash flows from operating activities in the amount of $1,086,000,$1,312,000, which includes a net loss of approximately $292,000,$29,000, and depreciation and amortization expenses of approximately $1,872,000.$1,098,000.  Other non-cash activities included in the determination of net income include direct payments of lease income by lessees to banks of approximately $410,000.$325,000.

The Partnership's investment strategy of acquiring computer equipment and generally leasing it under “triple-net leases” to operators who generally meet specified financial standards minimizes the Partnership's operating expenses.  As of September 30, 2007,March 31, 2008, the Partnership had future minimum rentals on non-cancelable operating leases of approximately $1,714,000$4,849,000 for the balance of the year ending December 31, 20072008 and approximately $9,683,000$3,829,000 thereafter.  As of September 30, 2007,March 31, 2008, the outstanding debt was approximately $3,274,000$2,639,000 with interest rates ranging from 4.61%4.65% to 6.3%, and will be payable through JanuaryOctober 2010.

The Partnership’s cash from operations is expected to continue to be adequate to cover all operating expenses, liabilities, and preferred distributions to Partners during the next 12-month period.  If available Cash Flowcash flow or Net Disposition Proceedsnet disposition proceeds are insufficient to cover the Partnership expenses and liabilities on a short and long term basis, the Partnership will attempt to obtain additional funds by disposing of or refinancing Equipment,equipment, or by borrowing within its permissible limits.  The Partnership may, from time to time, reduce the distributions to its Partners if it deems necessary.  Since the Partnership’s leases are on a “triple-net” basis, no reserve for maintenance and repairs is deemedconsidered necessary.

For the three months ended September 30,March 31, 2008, the Partnership recognized revenue of approximately $1,856,000 and expenses of approximately $1,949,000, resulting in a net loss of approximately $93,000.  For the three months ended March 31, 2007, the Partnership recognized revenue of approximately $1,774,000$1,453,000 and expenses of approximately $1,874,000,$1,481,000, resulting in a net loss of approximately $100,000.  For the three months ended September 30, 2006, the Partnership recognized revenue of approximately $1,128,000 and expenses of approximately $1,112,000, resulting in net income of approximately $16,000.$28,000.

Lease income increased by 68%33% to approximately $1,717,000$1,828,000 for the three months ended September 30, 2007,March 31, 2008, from approximately $1,022,000$1,378,000 for the three months ended September 30, 2006.March 31, 2007.  This increase was primarily due to more lease agreements commencing versus new lease agreements ending, during the three months ended September 30, 2007.March 31, 2008.

Operating expenses, excluding depreciation, primarily consist of accounting, legal, outside service fees and reimbursement of expenses to CCC for administration and operation of the Partnership.  The expenses increased 12%32% to approximately $277,000$1,949,000 for the three months ended September 30, 2007,March 31, 2008, from $248,000$1,481,000 for the three months ended September 30, 2006.March 31, 2007.  This increase is primarily attributable to an increase in other LPLimited Partner expenses, which was partially offset by a decrease in accounting fees, and outside office and printing services.

The equipment management fee is approximately 5% of the gross lease revenue attributable to equipment that is subject to operating leases. The equipment management fee increased 79%25% to approximately $86,000 for the three months ended September 30, 2007,March 31, 2008, from $48,000$69,000 for the three months ended September 30, 2006,March 31, 2007, which is consistent with the increase in lease income.

Depreciation and amortization expenses consist of depreciation on computer equipment and amortization of equipment acquisition fees. These expenses increased 81%31% to approximately $1,425,000$1,441,000 for the three months ended September 30, 2007,March 31, 2008, from $787,000$1,098,000 for the three months ended September 30, 2006.March 31, 2007. This increase was due to the acquisition of new equipment associated with the purchase of new leases.  The Partnership recorded impairment charges of approximately $41,000 to reflect the assets at their current estimated net realizable value for the period ending September 30, 2007.

The Chief Executive OfficerOur management, under the supervision and Principal Financial Officerwith the participation of the Partnershipprincipal executive officer and principal financial offer, have conducted a reviewevaluated the effectiveness of our controls and procedures related to our reporting and disclosure obligations as of March 31, 2008 which is the end of the Partnership'speriod covered by this Quarterly Report on Form 10-Q.  Based on that evaluation, the principal executive officer and principal financial officer have concluded that our disclosure controls and procedures as of September 30, 2007.

In April 2007, that have materially affected or are reasonably likelyour lessee Quick Loan Funding, Inc. began defaulting on its lease payments.  From April 2007 through the first quarter of 2008 we attempted several times to materially affectcollect payment of outstanding lease payments and to recover the General Partner’s internal controls over financial reporting.equipment from this lessee. On April 2, 2008, we filed suit in the Superior Court of Orange County, California (Docket No. 30-2008-00104785) against Quick Loan Funding, Inc. and its owner, Daniel Sadek, to recover the unpaid lease payments, late fees and the equipment. The suit is in its initial stages and we cannot predict the outcome with any reasonable certainty at this time.  To date, the Partnership has recorded a reserve against all outstanding rentals in the amount of approximately $43,000.  The Partnership has not experienced any significant changes related to this matter during the first quarter of 2008.  Prior to the first quarter of 2008, the Partnership had impaired these assets by approximately 15%.