<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-K

(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
    EXCHANGE ACT OF 1934 [FEE REQUIRED]

                 For the fiscal year ended December 31, 1998

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                  For the transition period from ____ to ____

                         Commission File Number 0-18528

        INCOME GROWTH PARTNERS, LTD. X, A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)

          CALIFORNIA                                             33-0294177
(State of other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

1300 Sorrento Valley Road, Suite 108, San Diego, California         92121
          (Address of principal executive offices)                (Zip Code)

                                 (619) 457-2750
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: 
LIMITED PARTNERSHIP INTERESTS

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
filing requirements for the past 90 days.  Yes [X]  No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [X]

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:

Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes[X] No [ ]
<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          PAGE
                                                                                          ----
<S>         <C>                                                                           <C>
PART I

Item 1.     Business........................................................................1

Item 2.     Properties......................................................................3

Item 3.     Legal Proceedings...............................................................3

Item 4.     Submission of Matters to a Vote of Security Holders.............................3

PART II

Item 5.     Market for the Registrant's Units and Related Security Holder Matters...........4

Item 6.     Selected Financial Data.........................................................5

Item 7.     Management's Discussion and Analysis of Financial Condition
            and Results of Operations.......................................................5

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk......................9

Item 8.     Financial Statements and Supplementary Data.....................................9

Item 9.     Disagreements on Accounting and Financial Disclosures...........................9

PART III

Item 10.    Directors and Executive Officers of the Registrant..............................9

Item 11.    Executive Compensation.........................................................10

Item 12.    Security Ownership of Certain Beneficial Owners and Management.................10

Item 13.    Certain Relationships and Related Transactions.................................11

PART IV

Item 14.    Exhibits, Financial Statement Schedules and Reports on Form 8-K................11

Signatures  ...............................................................................14
</TABLE>



<PAGE>   3



                                     PART I

ITEM 1. BUSINESS

GENERAL

Income Growth Partners, Ltd. X, a California limited partnership (the "Limited
Partnership") and subsidiaries (collectively, the "Partnership"), was formed in
February 1988, to acquire, operate and hold for investment one or more parcels
of income-producing, multi-family residential real property. Currently, the
Limited Partnership operates two separate apartment complexes in Southern
California: 1) Mission Park and 2) Shadowridge Meadows. The limited partnership
agreement provides that the Partnership shall continue through February 2021,
unless terminated sooner.

Income Growth Management, Inc. ("IGM") is the sole general partner. The general
partner has made no cash capital contributions to date. As of December 31, 1998,
there were approximately 2,082 limited partners in the Partnership.

The Partnership has no full-time employees. Employees of corporations affiliated
with the general partner perform certain administrative and other services on
behalf of the Partnership (see Item 13). The Partnership's executive offices are
located at 11300 Sorrento Valley Road, Suite 108, San Diego, California 92121
and the Partnership's telephone number is (619) 457-2750.

FINANCING STRATEGY

The Partnership seeks to minimize the cost of financing its properties and will
refinance existing loans from time to time to take advantage of prevailing
market conditions. The Mission Park and Shadowridge Meadows properties were
refinanced to prevailing rates during 1995 and 1997, respectively.

COMPETITIVE CONDITIONS

Changes in the national and regional economic climates, changes in local real
estate conditions such as the oversupply of apartments or a reduction in demand
for apartments, competition from single-family housing, apartment properties and
other forms of multifamily residential housing, the inability to provide
adequate maintenance and to obtain adequate insurance, increased operating
costs, changes in zoning, building, environmental, rent control and other laws
and regulations, the costs of compliance with current and future laws, changes
in real property taxes and unusual occurrences (such as earthquakes and floods)
and other factors beyond the control of the Partnership may adversely affect the
income from, and value of, the Partnership's properties.



                                       1

<PAGE>   4

ITEM 1. BUSINESS, CONTINUED

LEASES AND INFLATION

Substantially all of the leases at the Partnership's apartment properties are
for a period of six months or less, allowing, at the time of renewal, for
adjustments in the rental rate and the opportunity to release the apartment unit
at the prevailing market rate. The short-term nature of these leases generally
serves to minimize the risk to the Partnership of the adverse effect of
inflation and the Partnership does not believe that inflation has had a material
adverse impact on its revenues.

RESTRICTIONS IMPOSED BY LAWS BENEFITING DISABLED PERSONS

Under the Americans with Disabilities Act of 1990 (the "ADA"), all places of
public accommodation are required to meet certain federal requirements related
to access and use by disabled persons. These requirements became effective in
1992. A number of additional federal, state and local laws exist which also may
require modifications to the properties, or restrict certain further renovations
thereof, with respect to access thereto by disabled persons. For example, the
Fair Housing Amendments Act of 1988 (the "FHAA") requires apartment properties
first occupied after March 13, 1990 to be accessible to the handicapped.
Noncompliance with the ADA or the FHAA could result in an order to correct any
noncomplying feature, which could result in substantial capital expenditures.
Although management of the Partnership believes that the properties are
substantially in compliance with present requirements, if the properties are not
in compliance, the Partnership is likely to incur additional costs to comply
with the ADA and the FHAA.

During 1995, on a tax free basis, the Limited Partnership exchanged the Mission
Park property for a 99% interest in IGP X Mission Park Associates, L.P., a newly
formed California limited partnership (the "Mission Park Subsidiary"). The
Mission Park Subsidiary is separate and distinct from the Partnership, having
separate assets, liabilities and business operations.

During 1997, on a tax free basis, the Limited Partnership exchanged the
Shadowridge Meadows property for a 99% interest in IGP X Shadowridge Meadows,
Ltd., a newly formed California limited partnership (the "Shadowridge Meadows
Subsidiary"). The Shadowridge Meadows Subsidiary is also separate and distinct
from the Partnership, having separate assets, liabilities and business
operations.

Formation of the Mission Park Subsidiary and the Shadowridge Subsidiary had no
impact on the Partnership's overall financial condition, results of operations,
allocation of net income/loss, cash distributions or Partnership assets.


                                       2

<PAGE>   5

ITEM 2. PROPERTIES

The Partnership, through its subsidiaries, presently owns two properties, as
follows:

        MISSION PARK:

        Date of purchase: August 1989

        Purchase price: $17,100,000

        Property Description: A 264-unit apartment complex located in San
        Marcos, California. The property includes two full-size recreation
        rooms, two heated swimming pools and spas, night-lighted tennis courts,
        a satellite cable TV system and covered parking. The building is
        approximately eight years old. The property contains 215,292 square
        feet.

        SHADOWRIDGE MEADOWS:

        Date of purchase: November 1988

        Purchase price: $12,700,000

        Property Description: A 184-unit apartment complex located in Vista,
        California. The property includes a large recreation center, a heated
        swimming pool and spa, five laundry facilities, a satellite cable TV
        system and covered parking. The building is approximately eleven years
        old. The property contains 127,197 square feet.

ITEM 3. LEGAL PROCEEDINGS

The Partnership is not a party to any legal proceedings other than various
claims and lawsuits arising in the normal course of its business which, in the
opinion of the Partnership's management, are not individually or in the
aggregate material to its business.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        None



                                       3

<PAGE>   6

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S UNITS AND RELATED SECURITY HOLDER MATTERS

(a)     Market Information

        As of December 31, 1998, the outstanding securities of the Partnership
        included the Original Units and Class A Units held by the limited
        partners. The Partnership's Amended and Restated Agreement of
        Partnership substantially restricts transfers of all units and no public
        trading market for the units exists or is intended or expected to
        develop.

(b)     Holders

        As of December 31, 1998, the Partnership's 18,826.5 outstanding Original
        Units and 8,100 Class A Units were held by an aggregate of 2,082 Limited
        Partners.

(c)     Dividends

        As a limited partnership, the Partnership does not pay dividends.

        The amended partnership agreement provides that any distributions of
        cash from operations will be made in the following order of priority:

        First, each Class A Unit receives a 12% cumulative noncompounded annual
        return on the balance of actual funds invested in Class A Units ("Class
        A Preferred Return"). Second, each Class A Unit receives a total return
        of original invested capital. Third, each Class A Unit receives a $500
        bonus. Fourth, each Original Unit holder receives a 10% noncumulative
        return on the adjusted balance of original invested capital. Thereafter,
        90% of distributions on cash from operations will be made to the
        Original Unit holders and 10% to the general partner.

        The Partnership distributed approximately $312,000 to the holders of the
        Class A Units during 1998. Cumulative unpaid distributions on the Class
        A Preferred Return were approximately $559,000 as of December 31, 1998.

        Cash distributions are determined at the discretion of the general
        partner. Any future distributions are largely dependent on future
        income, expenses, debt service and operating reserves and there can be
        no assurance that future distributions will be paid.



                                       4

<PAGE>   7

ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA

The following selected consolidated financial data should be read in conjunction
with the financial statements and the related notes described in Item 8 herein:


<TABLE>
<CAPTION>
                                                 1998             1997             1996             1995            1994
                                             ------------     ------------     ------------     ------------     ------------
<S>                                          <C>              <C>              <C>              <C>              <C>         
Total assets                                 $ 20,513,980     $ 21,225,719     $ 21,476,918     $ 22,153,868     $ 28,945,057
Long-term obligations                          19,579,523       19,765,202       19,788,869       19,966,935       29,426,708
Total revenue                                   4,148,324        3,791,975        3,576,981        3,896,384        4,344,717
Total expenses                                 (4,331,753)      (4,163,361)      (4,063,509)      (4,584,674)      (9,413,282)
Write-down of land and building                        --               --               --               --        3,900,000
Loss before extraordinary item                   (183,429)        (371,386)        (486,528)       3,757,729       (5,322,740)
Extraordinary item: gain on                            --               --               --        4,446,019               --
    forgiveness of debt
Net income (loss)                                (183,429)        (371,386)        (486,528)       3,757,729       (5,322,740)
Net loss per partnership unit                       (6.81)          (13.79)          (18.06)          (28.48)         (282.73)
    before extraordinary gain
Extraordinary gain per partnership unit                --               --               --           184.01               --
Basic and diluted net
income (loss) per partnership unit (6.81)                           (13.79)          (18.06)          155.53          (282.73)
Weighted average limited partnership units         26,926           26,926           26,926           24,161           18,826
</TABLE>


There had been no cash distributions to partners up until December 31, 1997. The
Partnership distributed approximately $312,000 to the holders of the Class A
Units during 1998.


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS:

The following Management's Discussion and Analysis of Financial Condition and
Results of Operations should be read in conjunction with the financial
statements and notes thereto filed herewith. Historical results and percentage
relationships set forth in the consolidated statement of operations in the
financial statements, including trends which might appear, should not be taken
as indicative of future operations.

(a)     Liquidity and Capital Resources

        In January 1994, the Limited Partnership filed a voluntary petition for
        relief under Chapter 11 of the federal bankruptcy laws in the United
        States Bankruptcy Court for the Southern District of California.

        Under the provisions of the Plan of Reorganization (the "Plan"), the
        Limited Partnership was allowed to retain ownership of the Mission Park
        and Shadowridge Meadows properties. Despite $2,025,000 in additional
        capital from existing investors in the form of Class A Units, the
        Limited Partnership was unable to raise the necessary capital to retain
        ownership of its third property, Margarita Summit.



                                       5

<PAGE>   8

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS, CONTINUED:

        The Limited Partnership emerged from Chapter 11 effective in May 1995
        having fully satisfied all claims in accordance with the Plan.

        Prior to 1996, the Partnership's operating and debt service obligations
        have been financed through the sale of Partnership Units, cash provided
        by operating activities, and 1995 debt restructuring activities. During
        1996 through 1998, all of the Partnership's operating and debt service
        cash requirements have been met through cash generated from operations.

        The Mission Park mortgage was refinanced in December 1995 at a fixed
        interest rate of 7.76%. The Shadowridge Meadows mortgage was refinanced
        in October 1997 at a fixed interest rate of 7.49%.

        Despite the refinancings, mortgage indebtedness on the properties
        remains high, which may make it difficult for the properties to service
        their debt through Partnership operations. In the event that one or more
        of the properties is unable to support its debt service and the
        Partnership is unable to cover operational shortfalls from cash
        reserves, the Partnership may have to take one or more alternative
        courses of action. The general partners would then determine, based on
        their analysis of relevant economic conditions and the status of the
        properties, a course of action intended to be consistent with the best
        interests of the Partnership. Possible courses of action might include
        the sacrifice, sale or refinancing of one or more of the properties, the
        entry into one or more joint venture partnerships with other entities,
        or the filing of another bankruptcy petition.

        Prior period amounts have been reclassified to conform with the current
        year presentation.

        COMPARISON OF YEAR ENDED DECEMBER 31, 1998 TO THE YEAR ENDED DECEMBER
        31, 1997.

        Net cash provided by operating activities for the year ended December
        31, 1998 was $871,000 compared to $594,000 for the same period in 1997.
        The principal reason for this difference is a decrease in net loss of
        approximately $188,000, a decrease in prepaid expenses and other assets
        and an increase in accounts payable resulting from the timing of
        payments.

        Net cash used in investing activities for the year ended December 31,
        1998 was $156,000 compared to $252,000 for the same period in 1997. The
        decrease in cash used in investing activities is due primarily to
        decreases in improvements as compared to the prior year.



                                       6

<PAGE>   9



ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS, CONTINUED:

        Net cash used in financing activities for the year ended December 31,
        1998 was $555,000 compared to $305,000 for the same period in 1997. The
        increase is primarily due to an increase in the principal payments under
        mortgage debt of approximately $162,000, distributions paid of
        approximately $312,000 during 1998, the decrease of loan fees of
        approximately $338,000 from the refinance of the Shadowridge Meadows
        Property in 1997, and a decrease in the proceeds received from an
        affiliate of approximately $62,000.

        COMPARISON OF YEAR ENDED DECEMBER 31, 1997 TO THE YEAR ENDED DECEMBER
        31, 1996.

        Net cash provided by operating activities for the year ended December
        31, 1997 was $594,000 compared to $360,000 for the same period in 1996.
        The principal reason for this difference is a decrease in net loss of
        approximately $115,000 and an increase in accounts payable resulting
        from the timing of payments.

        Net cash used in investing activities for the year ended December 31,
        1997 was $252,000 compared to $44,000 for the same period in 1996. The
        increase in cash used in investing activities is due primarily to
        increases in improvements made possible by increased rental revenues.

        Net cash used in financing activities for the year ended December 31,
        1997 was $305,000 compared to $225,000 for the same period in 1996. The
        increase is primarily due to debt issue costs related to the refinancing
        of the Shadowridge Meadows property.

        (b) Results of Operations

        COMPARISON OF YEAR ENDED DECEMBER 31, 1998 TO THE YEAR ENDED DECEMBER
        31, 1997.

        Rental revenue for the year ended December 31, 1998 was $3,944,000, an
        increase of 8% over rents of $3,656,000 in the comparable period in
        1997. The increase is primarily attributable to an increase in monthly
        tenant rental rates and occupancy rates.

        Interest expense for the year ended December 31, 1998 was $1,489,000, a
        decrease of 4% over interest expense of $1,544,000 in the comparable
        period in 1997. The decrease is primarily attributable to the
        refinancing on the Shadowridge Meadows Property, as well as the increase
        in the principal payments on the existing mortgage loans. The increase
        is also attributable to amortization of loan fees related to the
        refinancing of the Shadowridge Meadows Property.

        Operating expense for the year ended December 31, 1998 was $1,929,000,
        an increase of 8% over operating expense of $1,782,000 in the comparable
        period in 1997. The increase is primarily attributable to higher
        management fees related to the increase in rental revenue.

        Depreciation expense for the year ended December 31, 1998 was $914,000,
        an increase of 9% over depreciation expense of $837,000 in the
        comparable period in 1997. The increase is primarily attributable to
        consistent yearly increases in total capitalized fixed asset
        expenditures.



                                       7

<PAGE>   10

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS, CONTINUED:

        COMPARISON OF YEAR ENDED DECEMBER 31, 1997 TO THE YEAR ENDED DECEMBER
        31, 1996.

        Rental revenue for the year ended December 31, 1997 was $3,656,000, an
        increase of 7% over rents of $3,430,000 in the comparable period in
        1996. The increase is primarily attributable to an increase in monthly
        tenant rental rates and occupancy rates.

        Interest expense for the year ended December 31, 1997 was $1,544,000, an
        increase of 1% over interest expense of $1,527,000 in the comparable
        period in 1996. The increase is primarily attributable to the variable
        interest rate on the Shadowridge Meadows Property. The increase is also
        attributable to amortization of loan fees related to the refinancing of
        the Shadowridge Meadows Property.

        Operating expense for the year ended December 31, 1997 was $1,782,000,
        an increase of 3% over operating expense of $1,726,000 in the comparable
        period in 1996. The increase is primarily attributable to an increase in
        refurbishment expenses in 1997 over 1996. The increase is also
        attributable to higher expenses related to increases in occupancy rates.

        Depreciation expense for the year ended December 31, 1997 was $837,000,
        an increase of 3% over depreciation expense of $810,000 in the
        comparable period in 1996. The increase is primarily attributable to an
        increase in capitalized fixed asset expenditures in 1997 over 1996.

(c)     Year 2000

        The Partnership is currently addressing a universal situation commonly
        referred to as the "Year 2000 Problem." The year 2000 problem relates to
        the inability of certain computer software programs and computer
        hardware to properly recognize and process data-sensitive information
        relative to the Year 2000 and beyond.

        During fiscal 1998, the Partnership developed a plan to devote the
        necessary resources to identify and modify internal systems impacted by
        the Year 2000 Problem, or implement new systems to become Year 2000
        compliant in a timely manner. This compliance plan consists of two major
        areas of focus: software systems and hardware. An area of lessor focus
        has been supplier management. The total cost of executing this plan is
        estimated to be $10,000.

        The Partnership has substantially completed the initial phases of the
        software systems portion of the compliance plan. The initial phases
        include completing an inventory of all software programs operating on
        Partnership systems, identifying year 2000 problems and developing
        contingency pans. Subsequent phases of the systems portion of the
        compliance plan involve execution of testing and the installation of
        Year 2000 compliant software into the operating environment, which will
        be complete as of the end of the second quarter of fiscal 1999.



                                       8

<PAGE>   11

        The Partnership has conducted an inventory of all hardware. All desktop
        systems critical to the Partnership's overall business are being
        evaluated under the method described above. As of March 1, 1999, this
        process was approximately 10% complete. The Partnership expects the
        execution of this portion of the plan to be substantially complete by
        the end of the second quarter of fiscal 1999. Desktop infrastructure is
        also being tested. The Company expects the testing of desktop
        infrastructure to be substantially complete during the second quarter of
        fiscal 1999.


ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

        The Company has no market-risk sensitive financial instruments.


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

        The consolidated financial statements and supplementary data required by
        this Item are set forth at the pages indicated in Item 14(a).


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

        None



                                    PART III

ITEM 10. GENERAL PARTNER AND EXECUTIVE OFFICERS OF THE PARTNERSHIP

        The general partner of the Partnership is Income Growth Management, Inc.
        ("IGM"), a California corporation. The executive officers of IGM do not
        receive compensation from the Partnership.

        The names, ages and positions of responsibility held by the executive
        officers and directors of IGM are as follows:

<TABLE>
<CAPTION>
             NAME                AGE                 POSITION
             ----                ---                 --------
<S>                               <C>         <C>
        David Maurer              46          President and Director
        Timothy Maurer            49          Secretary and Director
        Robert Green              41          Vice President of Operations and Director
</TABLE>

        FAMILY RELATIONSHIPS

        David Maurer and Timothy Maurer are brothers.



                                       9

<PAGE>   12

        BUSINESS EXPERIENCE

        The following is a brief background of the directors and executive
        officers of IGM:

        DAVID MAURER has served as President and Director of IGM since 1992, and
        as President and Director of ENA Corporation ("ENA"), an affiliate of
        IGM, since 1979. He has been involved in real estate syndication and
        property management since 1980, and in real estate development and
        construction since 1974. David was educated at the University of
        California, San Diego (B.A. 1974).

        TIMOTHY MAURER has served as Chief Financial Officer, Secretary and
        Director of IGM since 1979. He has been involved in real estate
        syndication, development, design and construction since 1975. Timothy
        was educated at the California College of Arts and Crafts, Oakland
        (B.F.A. 1972).

        ROBERT GREEN has served as Vice President of Operations and Director
        since 1988. He has also been the Director of Property Management of ENA
        since 1988. He has been directly involved in property management since
        1980. Robert worked for four years with Coldwell Banker Real Estate
        Management Services in San Diego managing both commercial and
        residential property. He also worked for four years with C&R Realty
        Company managing over 75 residential properties in Oregon and
        Washington. Robert was educated at Pacific University in Forest Grove,
        Oregon (B.A. 1980).


ITEM 11. EXECUTIVE COMPENSATION

        The Partnership has no executive officers and has not paid nor proposes
        to pay any compensation or retirement benefits to the directors or
        executive officers of Income Growth Management, Inc., the general
        partner. See Item 13 for compensation to the general partner.



ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a)     Security Ownership of Certain Beneficial Owners

<TABLE>
<CAPTION>
                             NAME AND ADDRESS OF       AMOUNT AND NATURE OF       PERCENT
        TITLE OF CLASS        BENEFICIAL OWNER         BENEFICIAL OWNERSHIP      OF CLASS
        --------------        ----------------         --------------------      --------
<S>                        <C>                              <C>                    <C> 
        Class A Units      John W. Baer                     609.0000               7.5%
                           1091 Valley View Court
                           Los Altos, CA 94024
</TABLE>

        No other person or group is known by the Partnership to own beneficially
        more than 5% of the outstanding Original Units or Class A Units.


                                       10

<PAGE>   13

(b)     Security Ownership of Management

        None of the officers and directors of the Partnership's corporate
        general partners are the beneficial owners of any Original Units or
        Class A Units.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

        The Partnership is entitled to engage in various transactions involving
        its general partners and its affiliates as described in the Partnership
        Agreement.

        The table below reflects amounts paid to the general partner or its
        affiliates during the following years:

<TABLE>
<CAPTION>
                                   1998        1997        1996
                                 --------    --------    --------
<S>                              <C>         <C>         <C>     
        Management fees          $207,300    $179,000    $167,000
        Administrative fees            --     113,000      68,600
        Loan origination fees      10,000      97,500          --
</TABLE>



                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)     Documents filed as part of this report:

        (1)     Financial Statements

                The following financial statements of the Partnership and
                related notes to financial statements and accountants' report
                are filed herewith:

                        Report of Independent Accountants

                        Consolidated Balance Sheets as of December 31, 1998 and
                        1997

                        Consolidated Statements of Operations for the years
                        ended December 31, 1998, 1997 and 1996

                        Consolidated Statements of Partners' Capital (Deficit)
                        for the years ended December 31, 1998, 1997 and 1996

                        Consolidated Statements of Cash Flows for the years
                        ended December 31, 1998, 1997 and 1996

                        Notes to Consolidated Financial Statements

        (2)     Financial Statement Schedule



                                       11

<PAGE>   14

                Schedule III - Real Estate and Accumulated Depreciation

                Schedule IV - Mortgage Loans on Real Estate

                All other schedules are either not required, or the information
                therein is included in the notes to the audited financial
                statements.

(b)     Reports on Form 8-K

        No reports on Form 8-K were filed during the last quarter of the fiscal
        year covered by this report.

(c)     Exhibits

        The following Exhibit Index lists the exhibits that are either filed as
        part of this report or incorporated herein by reference from a prior
        filing.



                                       12

<PAGE>   15

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT NO.                     DESCRIPTION                                       LOCATION
-----------                     -----------                                       --------
<S>             <C>                                                               <C>
        2.2     Second Amended Disclosure Statement to Debtor's Second               (1)
                Amended Plan of Reorganization, As Revised (with
                Second Amended Plan of Reorganization attached as
                Exhibit 1) filed with the Bankruptcy Court on October
                25, 1994;

                        Order Approving Second Amended Disclosure
                        Statement to Debtor's Second Amended Plan of
                        Reorganization, Approving Ballots and Fixing
                        Dates for Filing Acceptances or Rejections of
                        Plan and for Confirmation Hearing, Combined
                        with Notice Thereof;

                        Equity Interest Holder Ballot for Accepting or
                        Rejecting Debtor's Second Amended Plan of
                        Reorganization;

                        Offering Memorandum for Income Growth
                        Partners, Ltd. X Class A Units dated October
                        27, 1994 (with Amended and Restated Agreement
                        of Limited Partnership attached as Exhibit B).

        3.1     Articles of Incorporation of IGP X Mission Park, Inc.                (2)

        4.2     Amended and Restated Agreement of Limited Partnership                (3)

        4.3     Agreement of Limited Partnership of IGP X Mission Park               (2)
                Associates, L.P., A California Limited Partnership

        4.4     Agreement of Limited Partnership of IGP X Shadowridge                (6)
                Meadows, Ltd., A California Limited Partnership

        27.6    Financial Data Schedule                                              (7)

        28.1    Prospectus dated January 3, 1991                                     (4)

        28.4    Letter regarding resignation of General Partner                      (5)
</TABLE>

----------------

(1)     Incorporated by reference from the Partnership's Quarterly Report on
        Form 10-Q for the third quarter ended September 30, 1994 (Commission
        File Number 0-18528).

(2)     Incorporated by reference from the Partnership's Current Report on Form
        8-K dated December 27, 1995 (Commission File Number 0-18528).


                                       13

<PAGE>   16

(3)     Included as Exhibit "B" to the Partnership's Offering Memorandum for
        Income Growth Partners, Ltd. X Class A Units dated October 27, 1994,
        included in Exhibit 2.2 incorporated by reference from the Partnership's
        Quarterly Report on Form 10-Q for the third quarter ended September 30,
        1994 (Commission File Number 0-18528).

(4)     Incorporated by reference from the Partnership's Annual Report on Form
        10-K for the Fiscal Year ended December 31, 1992 (Commission File Number
        0-18528).

(5)     Incorporated by reference from the Partnership's Annual Report on Form
        10-K for the Fiscal Year ended December 31, 1993 (Commission File Number
        0-18528).

(6)     Incorporated by reference from the Partnership's Annual Report on Form
        10-K for the Fiscal Year ended December 21, 1997 (Commission File Number
        0-18528).

(7)     Filed herewith


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Date:  March 29, 1999

       INCOME GROWTH PARTNERS, LTD. X
       (a California Limited Partnership)

       By:                     Income Growth Management, Inc.
                               General Partner




                               By:  /s/ David W. Maurer
                                  -------------------------------
                                    David W. Maurer, President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on
the dates indicated.

<TABLE>
<CAPTION>
             Signatures                     Title and Capacity                  Date
             ----------                     ------------------                  ----
<S>                                         <C>                                <C>

    -------------------------               --------------------               -------

    -------------------------               --------------------               -------
</TABLE>



                                       14

<PAGE>   17




                                    Appendix



                              Financial Statements



<PAGE>   18


              INDEX TO FINANCIAL STATEMENTS - ITEM 14 OF FORM 10-K


<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>                                                                                         <C>
Report of Independent Accountants.........................................................F-2

Consolidated Financial Statements and Notes:

     Balance Sheets as of December 31, 1998 and 1997......................................F-3

     Statements of Operations for the Years Ended
     December 31, 1998, 1997 and 1996.....................................................F-4

     Statements of Partners' Capital for the Years Ended
     December 31, 1998, 1997 and 1996.....................................................F-5

     Statements of Cash Flows for the Years Ended
     December 31, 1998, 1997 and 1996.....................................................F-6

     Notes to Financial Statements........................................................F-7

     Schedule III - Real Estate and Accumulated Depreciation..............................F-14
</TABLE>



<PAGE>   19

                        REPORT OF INDEPENDENT ACCOUNTANTS

Income Growth Partners, Ltd. X,
a California limited partnership


In our opinion, the consolidated financial statements listed in the accompanying
index present fairly, in all material respects, the financial position of Income
Growth Partners, Ltd. X, as of December 31, 1998 and 1997, and the results of
their operations and their cash flows for each of the three years in the period
ended December 31, 1998, in conformity with generally accepted accounting
principles. In addition, in our opinion, the financial statement schedules
listed in the accompanying index present fairly, in all material respects, the
information set forth therein when read in conjunction with the related
consolidated financial statements. These financial statements and financial
statement schedules are the responsibility of the Partnership's management; our
responsibility is to express an opinion on these financial statements and
financial statement schedules based on our audits. We conducted our audits of
these financial statements and financial statement schedules in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.



PricewaterhouseCoopers LLP


San Diego, California
February 13, 1999



                                      F-2

<PAGE>   20

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                               1998                1997
                                                           ------------         ------------
<S>                                                        <C>                  <C>         
ASSETS
Rental properties:
   Land                                                    $  7,078,365         $  7,078,365
   Buildings and improvements                                21,763,241           21,607,078
                                                           ------------         ------------

                                                             28,841,606           28,685,443
   Less accumulated depreciation                             (9,445,320)          (8,582,492)
                                                           ------------         ------------

                                                             19,396,286           20,102,951

Cash and cash equivalents                                       441,909              282,293
Deferred loan fees, net of accumulated amortization
   of $132,140 and $80,873, respectively                        645,044              689,294
Prepaids and other assets                                        30,742              151,181
                                                           ------------         ------------

     Total assets                                          $ 20,513,981         $ 21,225,719
                                                           ------------         ------------

LIABILITIES AND PARTNERS' CAPITAL
Mortgage loans payable                                     $ 19,579,523         $ 19,765,202

Other liabilities:
   Loan payable to affiliates                                    72,640              113,000
   Accounts payable and accrued liabilities                     170,177              148,501
   Accrued interest payable                                     125,699              125,623
   Security deposits                                            199,177              201,250
                                                           ------------         ------------

                                                             20,147,216           20,353,576

Commitments and contingencies

Partners' capital                                               376,765              882,143
Note receivable from general partner                            (10,000)             (10,000)
                                                           ------------         ------------

     Total liabilities and parter's capital                $ 20,513,981         $ 21,225,719
                                                           ============         ============
</TABLE>


                  The accompanying notes are an integral part
                         of these financial statements.

                                      F-3

<PAGE>   21

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                               1998                 1997                1996
                                                            -----------         -----------         -----------
<S>                                                         <C>                 <C>                 <C>        
REVENUES:
   Rents                                                    $ 3,943,519         $ 3,655,595         $ 3,429,751
   Interest                                                       6,710               8,925               6,887
   Other                                                        198,095             127,455             140,343
                                                            -----------         -----------         -----------

      Total revenues                                          4,148,324           3,791,975           3,576,981

EXPENSES:
   Operating expenses                                         1,928,765           1,782,364           1,726,424
   Depreciation/amortization                                    914,095             836,962             810,220
   Interest and penalties                                     1,488,893           1,544,035           1,526,865
                                                            -----------         -----------         -----------

      Total expenses                                          4,331,753           4,163,361           4,063,509
                                                            -----------         -----------         -----------

Net loss                                                    $  (183,429)        $  (371,386)        $  (486,528)
                                                            ===========         ===========         ===========

BASIC AND DILUTED PER LIMITED PARTNERSHIP UNIT DATA:
   Net loss                                                 $     (6.81)        $    (13.79)        $    (18.06)
                                                            ===========         ===========         ===========

Weighted average limited partnership units                       26,926              26,926              26,926
                                                            ===========         ===========         ===========
</TABLE>


                  The accompanying notes are an integral part
                         of these financial statements.

                                      F-4



<PAGE>   22

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                         LIMITED PARTNERS
                                                     ------------------------
                                    GENERAL          ORIGINAL        CLASS A
                                    PARTNER          PARTNERS        PARTNERS              TOTAL
                                  ------------        ------        -----------         -----------
<S>                               <C>                 <C>           <C>                 <C>        
Balance, December 31, 1996        $  (287,663)          $ --         $1,541,192          $1,253,529

Net loss                              (55,708)            --           (315,678)           (371,386)
                                  -----------           ----         ----------          ----------
Balance, December 31, 1997           (343,371)            --          1,225,514             882,143

Distributions                              --             --           (321,949)           (321,949)

Net loss                              (27,514)            --           (155,915)           (183,429)
                                  -----------           ----         ----------          ----------
Balance, December 31, 1998        $  (370,885)          $ --         $  747,650          $  376,765
                                  ===========           ====         ==========          ==========
</TABLE>



                  The accompanying notes are an integral part
                         of these financial statements.

                                      F-5


<PAGE>   23

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                   1998               1997                1996
                                                               -----------         -----------         -----------
<S>                                                            <C>                 <C>                 <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                    $  (183,429)        $  (371,386)        $  (486,528)
   Adjustments to reconcile net loss to net cash
     provided by operating activities:
      Depreciation                                                 862,828             836,961             810,220
      Amortization of loan fees                                     51,267              20,103              27,543
      Decrease (increase) in prepaid expenses and other
        assets                                                     120,439              22,454             (25,584)
      Increase (decrease) in:
        Accounts payable and accrued liabilities                    21,676              67,028             (49,695)
        Security deposits                                           (2,073)             16,895              19,154
        Accrued interest payable                                        76               2,231              64,886
                                                               -----------         -----------         -----------

         Net cash provided by operating activities                 870,784             594,286             359,996
                                                               -----------         -----------         -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital expenditures                                           (156,164)           (252,031)            (44,383)
                                                               -----------         -----------         -----------

         Net cash used in investing activities                    (156,164)           (252,031)            (44,383)
                                                               -----------         -----------         -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments under mortgage debt                         (185,679)            (23,667)           (178,066)
   Loan fees and refinancing costs                                  (7,016)           (338,577)                 --
   Principal payments to affiliate                                 (60,360)            (14,800)            (46,700)
   Proceeds from affiliate loan                                     10,000              72,500                  --
   Distributions                                                  (321,949)                 --                  --
                                                               -----------         -----------         -----------

         Net cash used by financing activities                    (565,004)           (304,544)           (224,766)
                                                               -----------         -----------         -----------

         Net increase in cash and cash equivalents                 149,616              37,711              90,847

Cash and cash equivalents at beginning of year                     282,293             244,582             153,735
                                                               -----------         -----------         -----------

         Cash and cash equivalents at end of year              $   441,909         $   282,293         $   244,582
                                                               ===========         ===========         ===========

SUPPLEMENTAL CASH FLOWS INFORMATION:
   Cash paid for interest                                      $ 1,448,893         $ 1,337,417         $ 1,434,436
                                                               ===========         ===========         ===========
</TABLE>

                  The accompanying notes are an integral part
                         of these financial statements.

                                      F-6


<PAGE>   24

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------


1.      DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

        Income Growth Partners, Ltd. X (a California limited partnership) (the
        "Limited Partnership") and subsidiaries (collectively, the
        "Partnership") was formed in February 1988, to acquire, operate and hold
        for investment one or more parcels of income-producing, multi-family
        residential real property. Currently, the Partnership owns a 264 unit
        building in San Marcos, California ("Mission Park") and a 184 unit
        building in Vista, California ("Shadowridge Meadows").

        Income Growth Management, Inc. is the sole general partner. The general
        partner has made no cash capital contributions to date. As of December
        31, 1998, there were approximately 2,082 limited partners in the
        Partnership.


2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

        PRINCIPLES OF CONSOLIDATION 
        The consolidated financial statements include the accounts of the
        Limited Partnership and its subsidiaries. Subsidiaries consist primarily
        of California limited partnerships formed to hold and operate the
        Partnership's properties. All significant intercompany balances and
        transactions have been eliminated.

        CASH AND CASH EQUIVALENTS 
        Cash and cash equivalents consist of cash and short-term investments
        with original maturities at the date of purchase of 90 days or less.

        LAND, BUILDINGS AND IMPROVEMENTS
        Land, buildings and improvements are recorded at cost. Buildings and
        improvements are depreciated using the straight-line method over the
        estimated useful lives of 27.5 and 5 to 15 years, respectively.

        Expenditures for maintenance and repairs are charged to expense as
        incurred. Significant renovations are capitalized and depreciated over
        the remaining life of the property.

        The Partnership assesses its property for impairment whenever events or
        changes in circumstances indicate that the carrying amount of the
        property may not be recoverable. Recoverability of property to be held
        and used is measured by a comparison of the carrying amount of the
        property to future undiscounted net cash flows expected to be generated
        by the property. If the property is considered to be impaired, the
        impairment to be recognized is measured by the amount by which the
        carrying amount of the property exceeds the fair value of the property.


                                      F-7

<PAGE>   25

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------

        The cost and related accumulated depreciation of real estate are removed
        from the accounts upon disposition. Gains and losses arising from the
        dispositions are reported as income or expense.

        DEFERRED LOAN FEES 
        Deferred loan fees represent expenses incurred in obtaining the
        Partnership's mortgage loans payable. These fees are being amortized to
        interest expense over the initial term of the loan using the
        straight-line method which approximates the effective interest method.

        REVENUE RECOGNITION
        Rental revenues are recognized at the beginning of each month based on
        the current occupancy of the apartments. Tenant leases are generally for
        a term of six months with an option to renew for an additional six
        months or to rent on a month-to-month basis.

        ADVERTISING COSTS 
        Advertising costs are expensed as incurred. Total advertising expense
        was approximately $58,000, $52,000 and $56,000 for the years ended
        December 31, 1998, 1997 and 1996, respectively.

        INCOME TAXES 
        No provision has been made for federal or state income taxes on the
        operations of the Partnership. Such taxes are imposed on the individual
        partners for their respective shares of Partnership income or loss. The
        tax returns and amounts of allocable Partnership income or loss of the
        Partnership are subject to examination by federal and state taxing
        authorities. If such examinations result in a change in the Partnership
        status, or in changes to allocable Partnership income or loss, the tax
        liability of the partners could be changed accordingly.

        USE OF ESTIMATES
        The preparation of financial statements in conformity with generally
        accepted accounting principles 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
        financial statements, and the reported amounts of revenue and expense
        during the reporting period. Actual results could differ from estimates.

        RECLASSIFICATIONS
        Certain prior year amounts have been reclassified to conform with the
        current year presentation.

        COMPREHENSIVE INCOME
        Statement of Financial Accounting Standards No. 130, Comprehensive
        Income ("SFAS 130") requires the Company to report comprehensive income
        and its components in the financial statements. For the periods ending
        December 31, 1998, 1997, and 1996, the Partnership's comprehensive
        income was equal to the Partnership's net income.



                                      F-8

<PAGE>   26

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------

        RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
        The Partnership adopted Statement of Financial Accounting Standards
        ("SFAS") No. 131 Disclosures about Segments of an Enterprise and Related
        Information during the year ended December 31, 1998. This Statement
        supercedes substantially all the reporting requirements previously
        required under SFAS No. 14 Financial Reporting for Business Segments of
        an Enterprise and establishes standards for reporting information about
        operating segments and requires certain disclosures about products and
        services, geographic areas and major customers. Under SFAS 131, the
        determination of segments to be reported in the financial statements is
        to be consistent with the manner in which management organizes and
        evaluates the internal organization to make operating decisions and
        assess performance. This Statement also allows a Partnership to
        aggregate similar segments for reporting purposes. Management has
        determined that all of its operating units can be aggregated into one
        segment. Therefore, no segment disclosures have been included in the
        accompanying notes to the consolidated financial statements.

        There are no other recently issued pronouncements for which the
        Partnership does not expect a material impact on the Partnership's
        results of operations. Disclosures About Fair Value of Financial
        Instruments

                CASH AND SHORT-TERM INVESTMENTS:
                The carrying amount approximates fair value because of the short
                maturity of those instruments.

                LONG-TERM DEBT:
                The fair value of the Partnership's long-term debt is estimated
                based on the quoted market prices for the same or similar issues
                or on the current rates offered to the Partnership for debt of
                the same remaining maturities. The carrying values of the
                mortgage loans on both the Mission Park and Shadowridge Meadows
                properties approximates their respective fair values.


3.      CONCENTRATION OF CREDIT RISK:

        UNINSURED CASH
        The Partnership maintains cash accounts which may exceed FDIC insured
        levels at one financial institution. All of the Partnership's cash
        equivalents are held in a U.S. Treasury Money Fund which invests in
        short-term U.S. Treasury securities. The Partnership has not experienced
        any losses to date on its cash or cash equivalents.

        NATURE OF BUSINESS
        The properties are located in San Diego County. Changes in the regional
        economic climates, local real estate conditions such as the oversupply
        of apartments or a reduction in demand for apartments, competition from
        single-family housing, apartment properties and other forms of
        multifamily residential housing, the inability to provide adequate
        maintenance and to obtain adequate insurance, increased operating costs,
        changes in zoning, building, environmental, rent control and other laws
        and regulations, the costs of compliance with current and future laws,
        changes in 



                                      F-9

<PAGE>   27

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------

        real property taxes and unusual occurrences (such as earthquakes and
        floods) and other factors beyond the control of the Partnership may
        adversely affect the income from, and value of, the Partnership's
        properties.


4.      ACTIVITIES OF THE PARTNERSHIP:

        The general partner or its affiliates manage and control the affairs of
        the Partnership and have general responsibility for supervising the
        Partnership's properties and operations. The general partner and
        affiliates are compensated for these efforts as explained in Note 7.

        The original partnership agreement was amended in October 1994 and
        provides that cash distributions from operations are to be determined at
        the discretion of the general partner. After adequate working capital
        reserves have been met, cash distributions deemed appropriate by the
        general partner will be made as set forth, therein.

        DISTRIBUTION OF CASH FROM OPERATIONS The amended partnership agreement
        provides that any distributions of cash from operations will be made in
        the following order of priority:

                First, each Class A Unit receives a 12% cumulative noncompounded
                annual return on the balance of actual funds invested in Class A
                Units ("Class A Preferred Return"). Second, each Class A Unit
                receives a total return of original invested capital. Third,
                each Class A Unit receives a $500 bonus. Fourth, each Original
                Unit holder receives a 10% noncumulative return on the adjusted
                balance of original invested capital. Thereafter, 90% of
                distributions on cash from operations will be made to the
                Original Unit holders and 10% to the general partner.

        The Partnership distributed approximately $312,000 to the holders of the
        Class A Units during 1998. Cumulative unpaid distributions on the Class
        A Preferred Return were approximately $559,000 as of December 31, 1998.

        DISTRIBUTION OF CASH FROM SALE OR REFINANCING

        The amended partnership agreement provides that any distributions of
        sale or refinancing will be made in the following order of priority:

                First, each Class A Unit receives a 12% cumulative noncompounded
                annual return on the balance of actual funds invested in Class A
                Units. Second, each Class A Unit receives a total return of
                original invested capital. Third, each Class A Unit receives a
                $500 bonus. Fourth, each Original Unit holder receives an amount
                equal to the adjusted balance of original invested capital.
                Fifth, each Original Unit holder receives a 10% 


                                      F-10

<PAGE>   28

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------

                cumulative return on the adjusted balance of original invested
                ("the Preferred Return"). Thereafter, 85% of distributions of
                cash from operations will be made to the Original Unit holders
                and 15% to the general partner.

        ALLOCATION OF NET INCOME/LOSS
        Net losses are allocated 85% to the limited partners and 15% to the
        general partner. Losses in excess of the limited partners' capital
        balances are allocated 100% to the general partner. Net income will be
        allocated 100% to the general partner until the aggregate net income
        allocated is equal to the aggregate net losses allocated to the general
        partner in all previous years. The balance of net income after the
        initial allocation to the general partner, shall be allocated 85% to the
        limited partners and 15% to the general partner.


6.      MORTGAGE LOANS AND LOAN PAYABLE TO AFFILIATE:

        At December 31, 1998 and 1997, mortgage loans and loan payable to
        affiliate consisted of the following:

<TABLE>
<CAPTION>
                                                                      1998           1997
                                                                   -----------    -----------
<S>                                                                <C>            <C>        
        Mission Park - Note dated December 27, 1995,
        collateralized by first trust deed on land and
        buildings and a guarantee by officers of the general
        partner, interest and principal of $73,144 payable
        monthly based on 7.76% annual fixed interest rate,
        amortized over 30 years, balloon payment of
        approximately $8,918,000 due in January 2006               $ 9,917,901    $10,022,451

        Shadowridge Meadows - Note dated October 27, 1997,
        collateralized by first trust deed on land and
        buildings, interest and principal of $68,106 payable
        monthly based on 7.49% annual fixed interest rate,
        amortized over 30 years, balloon payment of
        approximately $8,475,000 due in November 2007                9,661,622      9,742,751
                                                                   -----------    -----------
                                                                    19,579,523     19,765,202

        Note payable to ENA, affiliate of general partner
        promissory note dated December 27, 1995, with simple
        interest and principal payable from time to time at
        the published prime rate, stated as 8.5% and 7.75%
        at December 31, 1997, and 1998 respectively, due
        upon demand                                                     28,593         40,500

        Note payable to Income Growth Property Management,
        affiliate of the general partner - promissory note
        dated October 23, 1997, with simple interest and
        principal payable from time to time at the published
        prime rate, stated as 8.5% at December 31, 1997, and
        due upon demand                                                 44,047         72,500
                                                                   -----------    -----------
                                                                   $19,652,163    $19,878,202
                                                                   ===========    ===========
</TABLE>



                                      F-11

<PAGE>   29

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------


        Future minimum annual principal payments are summarized as follows:

<TABLE>
<S>                             <C>        
        1999                    $   282,242
        2000                        226,176
        2001                        244,060
        2002                        263,360
        2003                        284,186
        Thereafter                18,352,139
                                  ----------
                                  $19,652,163
                                  ==========
</TABLE>



7.      RELATED PARTY TRANSACTIONS:

        Following is a description of related party transactions for the three
        years ended December 31, 1998 that have not otherwise been disclosed:

        MANAGEMENT FEES
        The Partnership's properties are managed by an affiliate of the general
        partner who receives a management fee.

        The fee for Mission Park is equal to 5% of the operating revenues
        generated by that property. The fee for Shadowridge Meadows was equal to
        4% of the operating revenues generated by that property through October
        1997 and 5% thereafter.

        Management fees aggregated approximately $207,300, $179,000 and $167,000
        in 1998, 1997 and 1996, respectively.

        ADMINISTRATIVE COSTS
        The Partnership has an agreement with an affiliate of the general
        partner (the "Affiliate") who furnishes certain administrative services
        and facilities to the Partnership, including accounting, data
        processing, duplication and transfer agent expenses, professional
        (including, but not limited to, regulatory reporting and legal services)
        and recording and partner communication expenses. The agreement provides
        for reimbursement to the affiliate for actual costs incurred.
        Reimbursements paid to the Affiliate under the provisions of this
        agreement aggregated approximately $99,000, $113,000 and $68,600 in
        1998, 1997 and 1996, respectively.

        NOTE RECEIVABLE FROM GENERAL PARTNER
        At December 31, 1998 and 1997, a non-interest bearing note receivable of
        $10,000 was due from the general partner for their initial partnership
        capital contribution.

        DEBT PLACEMENT FEES 
        During 1997 and 1995, the Partnership issued notes payable to an
        affiliate of the general partner for payment of debt placement fees of
        $97,500 and $102,000, respectively. Debt placement fees were equal to 1%
        of the principal amounts of the new third party financing. 




                                      F-12

<PAGE>   30

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
--------------------------------------------------------------------------------

        At December 31, 1998 and 1997, the aggregate balances of these notes
        were $72,640 and $113,000, respectively (See Note 6).

        SUBORDINATED REAL ESTATE BROKERAGE COMMISSIONS 
        If the general partner, or any of its affiliates, render services in
        negotiating and implementing the sale of Partnership properties, the
        general partner or such affiliates will be paid a real estate brokerage
        commission in an amount up to one-half of the commission customarily
        charged in arm's-length transactions but not in excess of 3% of the
        contract price for the property. Payment of such commission (other than
        payments in the form of promissory notes that are subordinated to the
        return of capital contributions to limited partners) shall be deferred
        until the limited partners have received distributions equal to their
        total original invested capital, plus the 10% Preferred Return described
        in Note 5. No properties were sold in 1998, 1997 or 1996 and,
        accordingly, no brokerage commissions were paid by the Partnership.


8.      LOSS PER LIMITED PARTNERSHIP UNIT DISCLOSURES:

        In accordance with the disclosure requirements of SFAS 128, a
        reconciliation of the numerator and denominator of basic and diluted EPS
        is provided as follows:

<TABLE>
<CAPTION>
                                                            YEAR ENDED DECEMBER 31,
                                                  ---------------------------------------------
                                                    1997              1997              1996
                                                  ---------         ---------         ---------
<S>                                               <C>               <C>               <C>       
        Numerator - basic and diluted EPS:
          Net loss                                $(183,428)        $(371,386)        $(486,528)
        Denominator - basic  and  diluted
        EPS:
          Weighted average limited
            partnership units                        26,926            26,926            26,926
                                                  ---------         ---------         ---------

        Basic and diluted loss per limited
          Partnership unit                        $   (6.81)        $  (13.79)        $  (18.06)
                                                  =========         =========         =========
</TABLE>



                                      F-13

<PAGE>   31

                                                                    SCHEDULE III

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
A CALIFORNIA LIMITED PARTNERSHIP

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED DECEMBER 31, 1998
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                              NET CHANGE                 GROSS AMOUNT AT WHICH
                                             INITIAL COST             SUBSEQUENT TO ACQUISITION        CARRIED AT CLOSE OF PERIOD 
                                    ----------------------------   ------------------------------   ----------------------------- 
                                                   BUILDINGS AND                    BUILDINGS AND                   BUILDINGS AND 
                     ENCUMBRANCES       LAND        IMPROVEMENTS        LAND         IMPROVEMENTS        LAND        IMPROVEMENTS 
                     ------------   ------------   -------------   ------------     -------------   ------------    ------------- 
<S>                  <C>            <C>             <C>             <C>              <C>             <C>             <C>          
Shadowridge Meadows  $  9,742,751   $  3,294,260    $  9,821,589    $   (400,000)    $   (951,815)   $  2,894,260    $  8,869,774 

Mission Park           10,022,451      4,484,105      13,490,802        (300,000)        (597,335)      4,184,105      12,893,467 
                     ------------   ------------    ------------    ------------     ------------    ------------    ------------ 
                     $ 19,765,202   $  7,778,36     $ 23,312,391    $   (700,000)    $ (1,549,150)   $  7,078,365    $ 21,763,241 
                     ============   ===========     ============    ============     ============    ============    ============ 
</TABLE>


<TABLE>
<CAPTION>
                       
                                                                                      LIFE ON WHICH
                                                                                    DEPRECIATION IN
                                         ACCUMULATED      DATE OF         DATE     LATEST STATEMENTS
                           TOTAL         DEPRECIATION   CONSTRUCTION    ACQUIRED      IS COMPUTED
                       ------------     ------------   ------------    ---------   -----------------
<S>                     <C>              <C>                  <C>            <C>       <C>       
Shadowridge Meadows     $ 11,764,034     $  3,566,541    Jan. 1988      Nov. 1988      27.5 years

Mission Park              17,077,572        5,878,779    May 1989       Aug. 1989      27.5 years
                        ------------     ------------  
                        $ 28,841,606     $  9,445,320
                        ============     ============
</TABLE>


(a)     Reconciliation of total real estate carrying value for the three years
        ended December 31, 1998:

<TABLE>
<CAPTION>
                                            1998          1997           1996
                                        -----------    -----------    -----------
<S>                                     <C>            <C>            <C>        
        Balance at beginning of year    $28,685,443    $28,433,411    $28,389,029
        Acquisitions                        156,163        252,032         44,382
                                        -----------    -----------    -----------

        Balance at end of year          $28,841,606    $28,685,443    $28,433,411
                                        ===========    ===========    ===========
</TABLE>

(b)     Reconciliation of accumulated depreciation for the three years ended
        December 31, 1998:

<TABLE>
<CAPTION>
                                           1998          1997          1996
                                        ----------    ----------    ----------
<S>                                     <C>           <C>           <C>       
        Balance at beginning of year    $8,582,492    $7,745,530    $6,935,310
        Expense                            862,828       836,962       810,220
                                        ----------    ----------    ----------

        Balance at end of year          $9,445,320    $8,582,492    $7,745,530
                                        ==========    ==========    ==========
</TABLE>



                                      F-14