<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                       Commission File Number: 333-108057

                    COMMONWEALTH INCOME & GROWTH FUND V, L.P.
             (Exact name of registrant as specified in its charter)

          Pennsylvania                                  65-1189593
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
 incorporation or organization)

                               470 John Young Way
                                 Exton, PA 19341
          (Address, including zip code, of principal executive offices)

                                 (610) 594-9600
               (Registrant's telephone number including area code)

     Indicate by check mark whether the registrant (i) 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, and (ii) has been subject to such filing
requirements for the past 90 days: YES [X] NO [_]

     Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12c-2 of the Act): YES [_] NO [X]

     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). YES [_] NO [X]


                                                                               1

<PAGE>

                                    FORM 10-Q
                                 MARCH 31, 2006

                                TABLE OF CONTENTS

                                     PART I
Item 1.    Condensed Financial Statements                                      3
Item 2.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations                                          11
Item 3.    Quantitative and Qualitative Disclosures About Market Risk         13
Item 4.    Controls and Procedures                                            13

                                     PART II
Item 1.    Legal Proceedings                                                  14
Item 1A.   Risk Factors                                                       14
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.       15
Item 3.    Defaults Upon Senior Securities                                    16
Item 4.    Sumission of Matters to a Vote of Securities Holders               16
Item 5.    Other Information                                                  16
Item 6.    Index to Exhibits

           Signatures

           Certifications


                                                                               2

<PAGE>

                    COMMONWEALTH INCOME & GROWTH FUND V, L.P.

                             CONDENSED BALANCE SHEET

<TABLE>
<CAPTION>
                                                          MARCH 31,    DECEMBER 31,
                                                             2006          2005
                                                         -----------   ------------
                                                         (UNAUDITED)
<S>                                                      <C>           <C>
ASSETS
Cash and cash equivalents                                $13,092,532   $10,722,300
Lease income receivable, net of reserves of $0 as of
   March 31, 2006 and December 31, 2005                      141,279        91,047
Other receivable - Affiliates                                 93,532        71,259
Other receivables                                                 --        94,293
Prepaid Fees                                                  19,650            --
                                                         -----------   -----------
                                                          13,346,993    10,978,899
                                                         -----------   -----------
Computer equipment, at cost                                7,860,514     5,480,291
Accumulated depreciation                                    (729,551)     (289,811)
                                                         -----------   -----------
                                                           7,130,963     5,190,480
                                                         -----------   -----------
Equipment acquisition costs and deferred expenses, net       285,460       211,190
Prepaid acquisition fees                                     583,112       483,504
                                                         -----------   -----------
                                                             868,572       694,694
                                                         -----------   -----------
TOTAL ASSETS                                             $21,346,528   $16,864,073
                                                         ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Accounts payable                                         $   387,105   $   138,832
Accounts payable - General Partner                            58,717        61,224
Accounts payable - Commonwealth Capital Corp.                 93,320        39,258
Unearned lease income                                         95,503        45,867
Notes Payable                                              1,029,091       785,157
                                                         -----------   -----------
TOTAL LIABILITIES                                          1,663,736     1,070,338
                                                         -----------   -----------
PARTNERS' CAPITAL
General partner                                                1,000         1,000
Limited partners                                          19,681,792    15,792,735
                                                         -----------   -----------
TOTAL PARTNERS' CAPITAL                                   19,682,792    15,793,735
                                                         -----------   -----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL                  $21,346,528   $16,864,073
                                                         ===========   ===========
</TABLE>

            see accompanying notes to condensed financial statements


                                                                               3

<PAGE>

                       COMMONWEALTH INCOME & GROWTH FUND V

                       CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                   FOR THE PERIOD OF
                                                                       MARCH 14,
                                                    THREE MONTHS   (COMMENCEMENT OF
                                                        ENDED         OPERATIONS)
                                                      MARCH 31,    THROUGH MARCH 31,
                                                        2006              2005
                                                     (UNAUDITED)      (UNAUDITED)
                                                    ------------   -----------------
<S>                                                  <C>               <C>
INCOME
Lease                                                $  604,587        $    737
Interest and other                                       49,425               1
                                                     ----------        --------
TOTAL INCOME                                            654,012             738
                                                     ----------        --------
EXPENSES
Operating                                               354,490          21,873
Organizational costs                                     36,751          25,939
Equipment management fee - General Partner               30,229              37
Interest                                                 16,173              --
Depreciation                                            439,739             948
Amortization of equipment
   acquisition costs and deferred expenses               24,396              51
                                                     ----------        --------
TOTAL EXPENSES                                          901,778          48,848
                                                     ----------        --------
NET (LOSS)                                           $ (247,766)       $(48,110)
                                                     ==========        ========
NET (LOSS) ALLOCATED TO LIMITED PARTNERS             $ (254,244)       $(48,110)
                                                     ==========        ========
NET (LOSS) PER EQUIVALENT LIMITED
   PARTNERSHIP UNIT                                  $    (0.22)       $  (0.64)
                                                     ==========        ========
WEIGHTED AVERAGE NUMBER OF EQUIVALENT LIMITED
   PARTNERSHIP UNITS OUTSTANDING DURING THE PERIOD    1,130,000          74,970
                                                     ==========        ========
</TABLE>

            see accompanying notes to condensed financial statements


                                                                               4

<PAGE>

                    COMMONWEALTH INCOME & GROWTH FUND V, L.P.

                    CONDENSED STATEMENTS OF PARTNERS' CAPITAL

                    FOR THE THREE MONTHS ENDED MARCH 31, 2006
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                             General    Limited
                             Partner    Partner    General     Limited
                              Units      Units     Partner     Partners       Total
                             -------   ---------   -------   -----------   -----------
<S>                             <C>    <C>         <C>       <C>           <C>
BALANCE, December 31, 2005      50       985,494   $ 1,000   $15,792,735   $15,793,735
Contributions                   --       264,457        --     5,254,658     5,254,658
Offering costs                  --            --        --      (593,264)     (593,264)
Net income (loss)               --            --     6,478      (254,244)     (247,766)
Distributions                   --            --    (6,478)     (518,093)     (524,571)
                               ---     ---------   -------   -----------   -----------
BALANCE, MARCH 31, 2006         50     1,249,951   $ 1,000   $19,681,792   $19,682,792
                               ===     =========   =======   ===========   ===========
</TABLE>

            see accompanying notes to condensed financial statements


                                                                               5

<PAGE>

                    COMMONWEALTH INCOME & GROWTH FUND V, L.P.

                        CONDENSED STATEMENTS OF CASH FLOW
   FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND THE PERIOD OF MARCH 14, 2005
               (COMMENCEMENT OF OPERATIONS) THROUGH MARCH 31, 2005

                                                          2006          2005
                                                      (UNAUDITED)    (UNAUDITED)
                                                      -----------   ------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES   $   466,239    $  (65,072)
Capital expenditures                                   (2,034,556)           --
Prepaid acquisition fees                                  (99,608)      (45,508)
Equipment acquisition fees paid to General Partner        (95,209)       (1,820)
                                                      -----------    ----------
NET CASH (USED IN) INVESTING ACTIVITIES                (2,229,373)      (47,328)
Contributions                                           5,254,658     2,381,380
Distributions                                            (524,571)     (285,174)
Offering costs                                           (593,264)           --
Debt Placement fees paid to General Partner                (3,457)           --
                                                      -----------    ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES               4,133,366     2,096,206
Net increase in cash and cash equivalents               2,370,232     1,983,806
Cash and cash equivalents, beginning of period         10,722,300         1,067
                                                      -----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD              $13,092,532    $1,984,873
                                                      ===========    ==========

            see accompanying notes to condensed financial statements


                                                                               6

<PAGE>

                     NOTES TO CONDENSED FINANCIAL STATEMENTS

1.   BUSINESS                    Commonwealth Income & Growth Fund V (the
                                 "Partnership") is a limited partnership
                                 organized in the Commonwealth of Pennsylvania
                                 on May 19, 2003. The Partnership is offering
                                 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 uses the proceeds of the
                                 Offering to acquire, own and lease various
                                 types of computer peripheral equipment and
                                 other similar capital equipment, which will be
                                 leased primarily to U.S. corporations and
                                 institutions. Commonwealth Capital Corp, on
                                 behalf of the Partnership and other affiliated
                                 partnerships, will acquire computer equipment
                                 subject to associated debt obligations and
                                 lease agreements and allocate 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
                                 Commonwealth Capital Corp. Commonwealth Capital
                                 Corp. is a member of the Investment Program
                                 Association (IPA), Financial Planning
                                 Association (FPA), and the Equipment Leasing
                                 Association (ELA). 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.

2.   SUMMARY OF SIGNIFICANT      BASIS OF PRESENTATION
     ACCOUNTING POLICIES
                                 The financial information presented as of any
                                 date other than December 31 has been prepared
                                 from the books and records without audit.
                                 Financial information as of December 31 has
                                 been derived from the audited financial
                                 statements of the Partnership, but does not
                                 include all disclosures required by accounting
                                 principles generally accepted in the United
                                 States of America. In the opinion of
                                 management, all adjustments, consisting only of
                                 normal recurring adjustments, necessary for a
                                 fair presentation of the financial information
                                 for the periods indicated have been included.
                                 Operating results for the three-month period
                                 ended March 31, 2006 are not necessarily
                                 indicative of financial results that may be
                                 expected for the full year ended December 31,
                                 2006.


                                                                               7

<PAGE>

                                 LONG-LIVED ASSETS

                                 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 determined that no
                                 impairment existed as of March 31, 2006.

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

                                 NET INCOME (LOSS) PER EQUIVALENT LIMITED
                                 PARTNERSHIP UNIT

                                 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
                                 limited partner units outstanding during the
                                 period.

3.   COMPUTER EQUIPMENT          The Partnership is the lessor of equipment
                                 under operating leases with periods ranging
                                 from 14 to 48 months. In general, associated
                                 costs such as repairs and maintenance,
                                 insurance and property taxes are paid by the
                                 lessee.

                                 Through March 31, 2006, the Partnership's
                                 leasing operations consisted of operating
                                 leases. Operating lease revenue is recognized
                                 on a monthly basis in accordance with the terms
                                 of the lease agreement.

                                 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. 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. No
                                 remarketing fees were paid for the period ended
                                 March 31, 2006.

                                 The Partnership's share of the computer
                                 equipment in which it participates with other
                                 partnerships at March 31, 2006 and December 31,
                                 2005 was approximately $1,677,000 and $932,000,
                                 respectively, which is included in the
                                 Partnership's fixed assets on


                                                                               8

<PAGE>

                                 its balance sheet, and the total cost of the
                                 equipment shared by the Partnership with other
                                 partnerships at March 31, 2006 and December 31,
                                 2005 was approximately $3,851,000 and
                                 $2,177,000, respectively. The Partnership's
                                 share of the outstanding debt associated with
                                 this equipment at March 31, 2006 and December
                                 31, 2005 was $270,000 and $0, respectively. The
                                 total outstanding debt at March 31, 2006 and
                                 December 31, 2005 was $676,000 and $0,
                                 respectively.

                                 The following is a schedule of future minimum
                                 rentals on noncancellable operating leases at
                                 March 31, 2006:

<TABLE>
<CAPTION>
                                                                          Amount
                                                                        ----------
                                 <S>                                    <C>
                                 Nine months ending December 31, 2006   $2,013,000
                                 Year ended December 31, 2007            2,622,000
                                 Year ended December 31, 2008            2,016,000
                                 Year ended December 31, 2009               33,000
                                                                        ----------
                                                                        $6,684,000
                                                                        ----------
</TABLE>

4.   RELATED PARTY               RECEIVABLES/PAYABLES
     TRANSACTIONS
                                 As of March 31, 2006, the Partnership's related
                                 party receivables and payables are short term,
                                 unsecured, and non-interest bearing.

                                 REIMBURSABLE EXPENSES

                                 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
                                 three-months ended March 31, 2006, the
                                 Partnership recorded $75,000 for reimbursement
                                 of expenses to the General Partner. For the
                                 period of March 14, 2005 (Commencement of
                                 Operations) through March 31, 2005, the
                                 Partnership recorded $8,000 for reimbursement
                                 of expenses to the General Partner.

                                 OFFERING COSTS

                                 Offering costs are payments for selling
                                 commissions, dealer manager fees, professional
                                 fees and other offering expenses relating to
                                 the syndication. 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.


                                                                               9

<PAGE>

                                 EQUIPMENT ACQUISITION FEE

                                 The General Partner is entitled to be paid an
                                 equipment acquisition fee of 4% of the purchase
                                 price of each item of equipment purchased as
                                 compensation for the negotiation of the
                                 acquisition of the equipment and lease thereof
                                 or sale under a conditional sales contract. For
                                 the period ended March 31, 2006, equipment
                                 acquisition fees of approximately $314,000 were
                                 earned by the General Partner.

                                 DEBT PLACEMENT FEE

                                 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. For the period ended March
                                 31, 2006, debt placement fees of approximately
                                 $12,000 were earned by the General Partner. No
                                 debt placement fees were earned by the General
                                 Partner for the period of March 14, 2005
                                 (Commencement of Operations) through March 31,
                                 2005.

                                 EQUIPMENT MANAGEMENT FEE

                                 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
                                 three-months ended March 31, 2006, equipment
                                 management fees of approximately $30,000 were
                                 earned by the General Partner. For the period
                                 of March 14, 2005 (Commencement of Operations)
                                 through March 31, 2005, equipment management
                                 fees of approximately $37 were earned by the
                                 General Partner.

5.   NOTES PAYABLE               Notes payable consisted of the following:

                                                                  MARCH 31, 2006
                                                                  --------------

                                 Installment note payable to
                                 bank; interest at 4.61%, due
                                 in monthly installments
                                 ranging of $160, including
                                 interest, with final payment
                                 in December 2007.                  $    1,069

                                 Installment notes payable to
                                 banks; interest ranging from
                                 4.65% to 6.3%, due in monthly
                                 installments ranging from
                                 $1,095 to $14,239, including
                                 interest, with final payments
                                 from February through
                                 September 2008.                     1,028,022
                                                                    ----------
                                                                    $1,029,091


                                                                              10

<PAGE>

                                 These notes are secured by specific computer
                                 equipment and are nonrecourse liabilities of
                                 the Partnership. Aggregate maturities of notes
                                 payable for each of the periods subsequent to
                                 March 31, 2006 are as follows:

                                                                        AMOUNT
                                                                      ----------
                                 Nine months ended December 31, 2006  $  313,580
                                 Year ended December 31, 2007            440,368
                                 Year ended December 31, 2008            275,143
                                                                      ----------
                                                                      $1,029,091
                                                                      ----------

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

CRITICAL ACCOUNTING POLICIES

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.

COMPUTER EQUIPMENT

CCC, 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


                                                                              11

<PAGE>

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.

REVENUE RECOGNITION

Through March 31, 2006, the Partnership's leasing operations consist of
operating leases. Operating lease revenue is recognized on a monthly basis in
accordance with the terms of the lease agreement.

The Partnership reviews a customer's credit history before extending credit and
establishes a provision for uncollectible accounts receivable based upon the
credit risk of specific customers, historical trends and other information.

LONG-LIVED ASSETS

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.

LIQUIDITY AND CAPITAL RESOURCES

The Partnership's primary source of capital for the quarter ended March 31, 2006
and the period of March 14, 2005 (Commencement of Operations) through March 31,
2005, was contributions of approximately $5,300,000 and $2,400,000,
respectively. The Partnership incurred and paid offering costs of approximately
$593,000 and $285,000 during those same periods. Equipment in the amount of
approximately $2,000,000 was purchased during the quarter ended March 31, 2006
and distributions in the amount of $525,000 were paid during that same period.
No distributions were paid during the period of March 14, 2005 (Commencement of
Operations) through March 31, 2005.

For the quarter ended March 31, 2006, cash was provided from operations in the
amount of $466,000, which includes a net loss of $248,000, and depreciation and
amortization expenses of approximately $464,000. Other noncash activities
included in the determination of net income include direct payments of lease
income by lessees to banks of approximately $102,000.

For the period of March 14, 2005 (Commencement of Operations) through March 31,
2005, the Partnership used cash for operating activities of approximately
$65,000, which includes a net loss of approximately $48,000, and depreciation
and amortization expenses of approximately $1,000.

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 March 31, 2006, the Partnership had future minimum rentals on non-cancelable
operating leases of $2,013,000 for the balance of the year ending December 31,
2006 and $4,671,000 thereafter.


                                                                              12

<PAGE>

RESULTS OF OPERATIONS

   Three months ended March 31, 2006 compared to the period of March 14, 2005
              (Commencement of Operations) through March 31, 2005

For the quarter ended March 31, 2006, the Partnership recognized income of
approximately $654,000 and expenses of approximately $902,000, resulting in a
net loss of approximately $248,000.

For the period of March 14, 2005 (Commencement of Operations) through March 31,
2005, the Partnership recognized income of approximately $1,000 and expenses of
approximately $49,000, resulting in a net loss of approximately $48,000.

For the quarter ended March 31, 2006, operating expenses of $354,000, excluding
depreciation, primarily consist of sales expenses of $21,000, conferences of
$11,000, postage and shipping of $5,000, and reimbursement of expenses to CCC
for administration and operation of the Partnership of approximately $168,000.

Operating expenses, excluding depreciation, were $22,000 during the period of
March 14, 2005 (Commencement of Operations) through March 31, 2005. These
expenses mainly consist of printing and sales expenses.

Organizational costs were approximately $37,000 and $26,000 for the quarter
ended March 31, 2006 and the period of March 14, 2005 (Commencement of
Operations) through March 31, 2005, respectively. In accordance with the
American Institute of Certified Public Accountants, Statement of Position (SOP)
98-05, costs relating to start-up activities and organization costs (accounting,
legal, printing, etc.) are expensed as incurred.

Depreciation and amortization expenses consist of depreciation on computer
equipment and amortization of equipment acquisition fees. The expenses totaled
approximately $464,000 and $1,000 for the quarter ended March 31, 2006 and the
period of March 14, 2005 (Commencement of Operations) through March 31, 2005,
respectively.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Partnership believes its exposure to market risk is not material due to the
fixed interest rate of its long-term debt and its associated fixed revenue
streams.

ITEM 4. CONTROLS AND PROCEDURES

The Chief Executive Officer and Financial Officer of the Partnership have
conducted a review of the Partnership's disclosure controls and procedures as of
March 31, 2006.

The Partnership's disclosure controls and procedures include the Partnership's
controls and other procedures designed to ensure that information required to be
disclosed in this and other reports filed under the Securities Exchange Act of
1934, as amended (the " Exchange Act") is accumulated and communicated to the
Partnership's management,


                                                                              13

<PAGE>

including its chief executive officer and a financial officer, to allow timely
decisions regarding required disclosure and to ensure that such information is
recorded, processed, summarized and reported with the required time quarters.

Based upon this review, the Partnership's Chief Executive Officer and Financial
Officer have concluded that the Partnership's disclosure controls (as defined in
Rule 13a-14c promulgated under the Exchange Act) are sufficiently effective to
ensure that the information required to be disclosed by the Partnership in the
reports it files under the Exchange Act is recorded, processed, summarized and
reported with adequate timeliness.

There have been no changes in the General Partner's internal controls or in
other factors that could materially affect our disclosure controls and
procedures in the quarter ended March 31, 2006, that have materially affected or
are reasonably likely to materially affect the General Partner's internal
controls over financial reporting.

PART II: OTHER INFORMATION

                       COMMONWEALTH INCOME & GROWTH FUND V

     Item 1.    LEGAL PROCEEDINGS.

                N/A

     Item 1A.   RISK FACTORS

THERE IS NO PUBLIC MARKET FOR THE UNITS, AND YOU MAY BE UNABLE TO SELL OR
TRANSFER YOUR UNITS AT A TIME AND PRICE OF YOUR CHOOSING

There exists no public market for the units, and the General Partner does not
expect a public market for units to develop. The units cannot be pledged or
transferred without the consent of the General Partner. The units should be
purchased as a long-term investment only. The General Partner intends to limit
the number of transfers to no more than that number permitted by one of the safe
harbors available under the tax laws and regulations to prevent CIGF5 from being
taxed as a corporation. Generally, these safe harbors require that all nonexempt
transfers and redemptions of units in any calendar year not exceed two percent
of the outstanding interests in the capital or profits of CIGF5.

The General Partner has sole discretion in deciding whether we will redeem units
in the future. Consequently, you may not be able to liquidate your investment in
the event of an emergency. You must be prepared to hold your units for the life
of CIGF5. CIGF5's life cycle will last approximately 10 to 12 years, and any
extension of this period will require an amendment to the partnership agreement,
which must be approved by a majority of the Limited Partners. You may be able to
resell your units, if at all, only at a discount to the offering price, which
may be significant, and the redemption or sale price may be less than the price
you originally paid for your units.

INFORMATION TECHNOLOGY EQUIPMENT WE PURCHASE WILL DEPRECIATE IN VALUE AND/OR
BECOME OBSOLETE OR LOSE VALUE AS


                                                                              14

<PAGE>

NEW TECHNOLOGY IS DEVELOPED, WHICH CAN REDUCE THE VALUE OF YOUR UNITS AND YOUR
ULTIMATE CASH RETURN.

Residual value is the amount realized upon the sale or release of equipment when
the original lease has expired. The residual value of our equipment may decline
if technological advancements make it obsolete or change market preferences. The
residual value depends on, among other factors, the condition of the equipment,
the cost of comparable new equipment, the technological obsolescence of the
equipment and supply and demand for the equipment.

In either of these events, the equipment we purchased may have little or no
residual value. This will result in insufficient assets for us to distribute
cash in a total amount equal to the invested capital of the Limited Partners
over the term of our existence. Also, such an occurrence may reduce the value of
the units. Although currently we expect CIGF5 to acquire predominantly new
equipment, CIGF5 may purchase used equipment. There is no limitation on the
amount of used equipment which CIGF5 may acquire. The acquisitions of used
equipment may increase the risk that such equipment will become obsolete so that
it will have little or no residual value.

WE PAY SIGNIFICANT FEES TO THE GENERAL PARTNER AND AFFILIATES, WHICH WILL REDUCE
CASH AVAILABLE FOR DISTRIBUTIONS.

The General Partner and its affiliates, including Commonwealth Capital
Securities Corp.("CCSC"), will receive substantial fees. Some fees will be paid
without regard to the amount of distributions paid or the success or
profitability of CIGF5's operations and investments. For example, an increase in
portfolio turnover or the amount of leverage used to purchase equipment may
increase the fees we pay to the General Partner. Such compensation and fees were
established by the General Partner and are not based on arm's-length
negotiations.

CIGF5 HAS A LIMITED OPERATING HISTORY UPON WHICH YOU CAN EVALUATE PERFORMANCE.
THERE CAN BE NO ASSURANCE THAT ANY OF THE INVESTMENT OBJECTIVES WILL BE
ATTAINED.

Our operations may not ultimately be successful and we may be unable to meet our
stated investment objectives. Specifically, sufficient cash may ultimately not
be available for distribution to investors. Our General Partner sponsors four
other public equipment leasing programs with investment objectives similar to
CIGF5. The General Partner has also sponsored several privately held equipment
leasing programs. Results for these prior public and private programs have in
some cases been lower than originally anticipated.

ANY DELAY IN ACQUIRING EQUIPMENT WILL DIMINISH OUR RETURNS.

Due to competition with other lessors, we may experience difficulty in obtaining
and leasing appropriate equipment. Our ability to acquire and lease equipment
may also be adversely affected by interest rates, the availability of capital or
increases in corporate liquidity, since prospective lessees may prefer to raise
capital, incur debt or use internally-generated cash to purchase equipment
rather than enter the leasing market.


                                                                              15

<PAGE>

     Item 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

                N/A

     Item 3.    DEFAULTS UPON SENIOR SECURITIES.

                N/A

     Item 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS.

                N/A

     Item 5.    OTHER INFORMATION.

                N/A

     Item 6.    EXHIBITS

                     31.1   THE RULE 15D-14(A)
                     31.2   THE RULE 15D-14(A)
                     32.1   SECTION 1350 CERTIFICATION OF CEO
                     32.2   SECTION 1350 CERTIFICATION OF CFO

                                    SIGNATURE

Pursuant to the requirements 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.

                                        COMMONWEALTH INCOME & GROWTH
                                        FUND I
                                        BY: COMMONWEALTH INCOME & GROWTH FUND,
                                        INC. General Partner


May 15, 2006                            By: /s/ Kimberly A. Springsteen
Date                                        ------------------------------------
                                            Kimberly A. Springsteen
                                            Chief Executive Officer


                                                                              16

<PAGE>

                             31.1 THE RULE 15D-14(A)

I, Kimberly A. Springsteen certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Commonwealth Income &
     Growth Fund V (the Registrant);

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material fact or omit to state a material fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The registrant's other certifying officer(s) and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-15(e) and 15d-15(e) for the registrant and have:

     (a)  Designed such disclosure controls and procedures, or caused such
          disclosure controls and procedures to be designed under our
          supervision, to ensure that material information relating to the
          registrant, including its consolidated subsidiaries, is made known to
          us by others within those entities, particularly during the period in
          which this report is being prepared;

     (b)  Evaluated the effectiveness of the registrant's disclosure controls
          and procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     (c)  Disclosed in this report any change in the registrant's internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's fourth fiscal quarter in
          the case of an annual report) that has materially affected, or is
          reasonably likely to materially affect, the registrant's internal
          control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

     (a)  All significant deficiencies and material weaknesses in the design or
          operation of internal control over financial reporting which are
          reasonably likely to adversely affect the registrant's ability to
          record, process, summarize and report financial information; and

     (b)  Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          control over financial reporting.


/s/ Kimberly A. Springsteen
----------------------------------------
Kimberly A. Springsteen
Chief Executive Officer
May 15, 2006


                                                                              17

<PAGE>

                             31.2 THE RULE 15D-14(A)

I, Kimberly A. Springsteen, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Commonwealth Income &
     Growth Fund V (the Registrant);

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material fact or omit to state a material fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The registrant's other certifying officer(s) and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

     (a)  Designed such disclosure controls and procedures, or caused such
          disclosure controls and procedures to be designed under our
          supervision, to ensure that material information relating to the
          registrant, including its consolidated subsidiaries, is made known to
          us by others within those entities, particularly during the period in
          which this report is being prepared;

     (b)  Evaluated the effectiveness of the registrant's disclosure controls
          and procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     (c)  Disclosed in this report any change in the registrant's internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's fourth fiscal quarter in
          the case of an annual report) that has materially affected, or is
          reasonably likely to materially affect, the registrant's internal
          control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

     (a)  All significant deficiencies and material weaknesses in the design or
          operation of internal control over financial reporting which are
          reasonably likely to adversely affect the registrant's ability to
          record, process, summarize and report financial information; and

     (b)  Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          control over financial reporting.


/s/ Kimberly A. Springsteen
----------------------------------------
Kimberly A. Springsteen
Principal Financial Officer
May 15, 2006


                                                                              18

<PAGE>

                     32.1 SECTION 1350 CERTIFICATION OF CEO

                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER
                       PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Commonwealth Income & Growth Fund V,
(the "Company") on Form 10-Q for the quarter ending March 31, 2006, as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Kimberly A. Springsteen, Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to the best of knowledge:

     (1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company.

/s/ Kimberly A. Springsteen
----------------------------------------
Kimberly A. Springsteen
Chief Executive Officer
May 15, 2006


                                                                              19

<PAGE>

                     32.2 SECTION 1350 CERTIFICATION OF CFO

                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
                       PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Commonwealth Income & Growth Fund V,
(the "Company") on Form 10-Q for the quarter ending March 31, 2006, as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Kimberly A. Springsteen, Principal Financial Officer of the Company, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to the best of knowledge:

     (1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company.


/s/ Kimberly A. Springsteen
----------------------------------------
Kimberly A. Springsteen
Principal Financial Officer
May 15, 2006


                                                                              20