<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 JUNE 30, 2003

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

                        Commission File Number: 33-62526

                      COMMONWEALTH INCOME & GROWTH FUND IV
             (Exact name of registrant as specified in its charter)

         Pennsylvania                                   23-3080409
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
incorporation or organization)

                          470 John Young Way Suite 300
                                 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 (III) has been subject to such filing
requirements for the past 90 days:


                           YES  [X]      NO   [ ]






<PAGE>

                                 Commonwealth Income & Growth Fund IV
                                            Balance Sheets

<TABLE>
<CAPTION>
                                                                June 30,         December 31,
                                                                  2003               2002
                                                               -----------------------------
                                                                (unaudited)
<S>                                                            <C>               <C>
Assets

Cash and cash equivalents                                      $ 3,901,299       $   510,780
Lease income receivable                                             27,897            30,957
Other Receivables - Commonwealth Capital Corp                      156,029                 -
Other Receivables - Other Affiliated Limited Partnerships           35,326             6,000
Receivables from sales of equipment                                      -           103,610
Deferred Revenue                                                     1,052                 -
Refundable Deposits                                                  1,130                 -
                                                               -----------------------------
                                                                 4,122,733           651,347
                                                               -----------------------------

Computer equipment, at cost                                      4,631,678         2,110,606
Accumulated depreciation                                          (480,620)          (92,931)
                                                               -----------------------------
                                                                 4,151,058         2,017,675
                                                               -----------------------------

Equipment acquisition costs and deferred expenses, net             165,015            79,672
Prepaid acquisition fees                                           181,887            33,905
                                                               -----------------------------
                                                                   346,902           113,577
                                                               -----------------------------
Total assets                                                   $ 8,620,693       $ 2,782,599
                                                               =============================

Liabilities and Partners' Capital

Liabilities
Accounts payable                                                   500,190            20,486
Accounts payable - General Partner                                   6,047               806
Accounts payable - Commonwealth Capital Corp.                            -            61,807
Unearned lease income                                               53,735             6,514
Notes payable                                                      658,996                 -
                                                               -----------------------------
Total liabilities                                                1,218,968            89,613
                                                               -----------------------------
Partners' Capital

General partner                                                      1,000             1,000
Limited partners                                                 7,400,725         2,691,986
                                                               -----------------------------
Total partners' capital                                          7,401,725         2,692,986
                                                               -----------------------------

Total liabilities and partners' capital                        $ 8,620,693       $ 2,782,599
                                                               =============================
</TABLE>

                 see accompanying notes to financial statements


<PAGE>

<TABLE>
<CAPTION>
                      Commonwealth Income & Growth Fund IV
                            Statements of Operations

                                                        Three Months Ended     Six Months Ended
                                                             June 30,              June 30,
                                                               2003                  2003
                                                        ------------------     ----------------
                                                           (unaudited)            (unaudited)
<S>                                                        <C>                   <C>
Income
Lease                                                      $   313,237           $   583,492
Interest and other                                               4,942                 6,529
                                                           -----------           -----------
Total Income                                                   318,179               590,021
                                                           -----------           -----------

Expenses
Operating, excluding depreciation                              426,956               665,012
Organizational costs                                            43,775                65,842
Equipment management fee - General Partner                      15,662                29,175
Interest                                                        11,207                21,649
Depreciation                                                   201,141               387,689
Amortization of equipment
  acquisition costs and deferred expenses                       12,913                23,660

                                                           -----------           -----------
Total expenses                                                 711,654             1,193,027
                                                           -----------           -----------

Net (loss)                                                 $  (393,475)          $  (603,006)
                                                           ===========           ===========

Net (loss) per equivalent limited
  partnership unit                                         $     (0.99)          $     (1.93)
                                                           ===========           ===========

Weighted average number of equivalent limited
  partnership units outstanding during the period              398,671               312,047
                                                           ===========           ===========
</TABLE>





(1)  Although the Partnership was formed on May 15, 2001, the Fund did not
     commence operations until July 8, 2002.




                 see accompanying notes to financial statements


<PAGE>

                      Commonwealth Income & Growth Fund IV
                         Statements of Partners' Capital

<TABLE>
<CAPTION>
                                                              For the Six Months ended June 30, 2003
                                                                            (unaudited)

                                                General      Limited
                                                Partner      Partner           General          Limited
                                                 Units        Units            Partner          Partner                Total
                                            -------------------------------------------------------------------------------------

<S>                                              <C>         <C>               <C>            <C>                   <C>
Partners' capital - December 31, 2002            50          181,566           $ 1,000        $  2,691,986          $  2,692,986
  Contributions                                              315,131                             6,285,591             6,285,591
  Offering costs                                                                                  (687,667)             (687,667)
  Net income (loss)                                                              2,862            (605,868)             (603,006)
  Distributions                                                                 (2,862)           (283,317)             (286,179)
                                            -------------------------------------------------------------------------------------
Partners' capital - June 30, 2003                50          496,697           $ 1,000        $  7,400,725          $  7,401,725
                                            =====================================================================================
</TABLE>








                 see accompanying notes to financial statements


<PAGE>



                      Commonwealth Income & Growth Fund IV
                             Statement of Cash Flow
                     For the Six Months Ended June 30, 2003


<TABLE>
<CAPTION>
                                                                               2003
                                                                           -----------
Operating activities                                                       (unaudited)
<S>                                                                        <C>
Net (loss)                                                                 $  (603,006)
Adjustments to reconcile net (loss) to net cash
   provided by operating activities
     Depreciation and amortization                                             411,349
     Other noncash activities included in
          determination of net loss                                           (157,008)
     Changes in assets and liabilities
         (Increase) decrease in assets
              Lease income receivable                                            3,060
              Deferred revenue                                                  (1,052)
              Other receivables - Other Affiliated Limited Partnerships        (29,326)
              Receivables from sales of equipment                              103,610
              Refundable Deposits                                               (1,130)
         Increase (decrease) in liabilities
              Accounts payable                                                 479,704
              Accounts payable, Common Capital Corp.                           (61,807)
              Accounts payable, General Partner                                  5,241
              Unearned lease income                                             47,221
                                                                           -----------
Net cash provided by operating activities                                      196,856
                                                                           -----------
Investing activities:

Capital Expenditures                                                        (1,705,068)
Prepaid acquisition fees                                                      (147,982)
Equipment acquisition fees paid to General Partner                            (100,843)
                                                                           -----------
Net cash (used in)  investing activities                                    (1,953,893)
                                                                           -----------
Financing activities:

Contributions                                                                6,285,591
Offering Costs                                                                (687,667)
Distributions to partners                                                     (286,179)
Other receivable, Commonwealth Capital Corp                                   (156,029)
Debt Placement fee paid to the General Partner                                  (8,160)
                                                                           -----------
Net cash provided by financing activities                                    5,147,556
                                                                           -----------

Net increase in cash and equivalents                                         3,390,519
Cash and cash equivalents, beginning of period                                 510,780
                                                                           -----------
Cash and cash equivalents, end of period                                   $ 3,901,299
                                                                           ===========
</TABLE>


(1)  Although the Partnership was formed on May 15, 2001, the Fund did not
     commence operations until July 8, 2002.

                 see accompanying notes to financial statements

<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

1.      Business                   Commonwealth Income & Growth Fund IV (the
                                   "Partnership") is a limited partnership
                                   organized in the Commonwealth of Pennsylvania
                                   on May 15, 2001. The Partnership is offering
                                   for sale up to 750,000 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 July 8, 2002. As of
                                   June 30, 2003, the Partnership has received
                                   $9,913,145 in contributions from limited
                                   partners, amounting to 496,697 units. For the
                                   quarter ended June 30, 2003, the Partnership
                                   has received $4,183,942 in contributions from
                                   limited partners, amounting to 210,049 units.
                                   As of June 30, 2003, there was $254,000 in
                                   contributions from limited partners,
                                   amounting to 12,700 units, which remained in
                                   our escrow account. This amount was withdrawn
                                   from the escrow agent and contributed to the
                                   Partnership on July 3, 2003.

                                   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
                                   ("CCC"), 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 CCC. CCC 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, 2012.
<PAGE>

2.      Summary of                 Basis of Presentation
        Significant
        Accounting                 The financial information presented as of any
        Policies                   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 generally
                                   accepted accounting principles. In the
                                   opinion of management, all adjustments,
                                   consisting only of normal recurring
                                   adjustments, necessary for a fair
                                   presentation of the financial information for
                                   the periods indicated have been included. For
                                   further information regarding the
                                   Partnership's accounting policies, refer to
                                   the financial statements and related notes
                                   included in the Partnership's annual report
                                   on Form 10-K for the year ended December 31,
                                   2002. Operating results for the six-month
                                   period ended June 30, 2003 are not
                                   necessarily indicative of financial results
                                   that may be expected for the full year ended
                                   December 31, 2003.

                                   Revenue Recognition

                                   Through June 30, 2003, the Partnership has
                                   only entered into operating leases. Lease
                                   revenue is recognized on a monthly basis in
                                   accordance with the terms of the operating
                                   lease agreements.

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

                                   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 the financial
                                   statements and the reported amounts of
                                   revenues and expenses during the reporting
                                   period. Actual results could differ from
                                   those estimates.

                                   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. The fair value is
                                   determined based on estimated discounted cash
                                   flows to be generated by the asset. As of
                                   June 30, 2003, there is no impairment.
<PAGE>

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

                                   Intangible Assets

                                   Equipment acquisition costs and deferred
                                   expenses are amortized on a straight-line
                                   basis over two- to-four year lives.
                                   Unamortized acquisition fees and deferred
                                   expenses are charged to amortization expense
                                   when the associated leased equipment is sold.

                                   Cash and Cash Equivalents

                                   The Partnership considers all highly liquid
                                   investments with a maturity of three months
                                   or less to be cash equivalents. Cash
                                   equivalents have been invested in a money
                                   market fund investing directly in Treasury
                                   obligations.

                                   Income Taxes

                                   The Partnership is not subject to federal
                                   income taxes; instead, any taxable income
                                   (loss) is passed through to the partners and
                                   included on their respective income tax
                                   returns.

                                   Taxable income differs from financial
                                   statement net income as a result of reporting
                                   certain income and expense items for tax
                                   purposes in periods other than those used for
                                   financial statement purposes, principally
                                   relating to depreciation, amortization, and
                                   lease income.

                                   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 1% of the partners' contributed capital.
                                   These costs have been deducted from
                                   partnership capital in the accompanying
                                   financial statements.

                                   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 units outstanding during the
                                   period.


<PAGE>

                                   Reimbursable Expenses

                                   Reimbursable expenses, which are charged to
                                   the Partnership by CCC in connection with the
                                   administration and operation of the
                                   Partnership, are allocated to the Partnership
                                   based upon several factors including, but not
                                   limited to, the number of investors,
                                   compliance issues, and the number of existing
                                   leases.

3.      Computer                   The Partnership is the lessor of equipment
        Equipment                  under operating leases with periods ranging
                                   from 16 to 36 months. In general, the lessee
                                   pays associated costs such as repairs and
                                   maintenance, insurance and property taxes.

                                   The Partnership's share of the computer
                                   equipment in which they participate at June
                                   30, 2003 was approximately $8,000, which is
                                   included in the Partnership's fixed assets on
                                   their balance sheet, and the total cost of
                                   the equipment shared by the Partnership with
                                   other partnerships at June 30, 2003 was
                                   approximately $48,000. The Partnership did
                                   not participate in shared equipment as of
                                   December 31, 2002.

                                   The following is a schedule of future minimum
                                   rentals on noncancellable operating leases at
                                   June 30, 2003:

<TABLE>
<CAPTION>
                                                                               Amount
                                   ----------------------------------------------------
<S>                                                                         <C>
                                   Six Months ended December 31, 2003       $   744,000
                                   Year Ended December 31, 2004               1,457,000
                                   Year Ended December 31, 2005               1,058,000
                                   Year Ended December 31, 2006                 133,000
                                                                            -----------
                                                                            $ 3,392,000
                                   ----------------------------------------------------
</TABLE>

4.      Related Party              Other Receivables
        Transactions
                                   During the six-months ended June 30, 2003,
                                   the Partnership made a non-interest bearing
                                   advance to CCC, a related party to the
                                   Partnership, in the amount of approximately
                                   $156,000. This advance, as well as potential
                                   future advances, was and will be made at the
                                   discretion of the General Partner. CCC,
                                   through its indirect subsidiaries, including
                                   the General Partner of the Partnership,
                                   earns fees based on revenues and new lease
                                   purchases from this fund. CCC, through its
                                   indirect subsidiaries, including the General
                                   Partner of the Partnership, earns fees based
                                   on revenues and new lease purchases from
                                   this fund. CCC intends to repay the
                                   receivable via the offsetting of acquisition
                                   and debt placement fees over the next
                                   several fiscal years.
<PAGE>

5. Notes Payable                   Notes payable consisted of the following:

<TABLE>
<CAPTION>
                                                                                           June 30,      December 31,
                                                                                             2003            2002
                                   ----------------------------------------------------------------------------------
<S>                                                                                      <C>                <C>
                                   Installment notes payable to banks; interest
                                   ranging from 5.75% to 7.75%, due in monthly
                                   installments ranging from $60 to $1,980,
                                   including interest, with final payments due from
                                   June through December 2004.                           $  84,538          $       -

                                   Installment notes payable to banks; interest
                                   ranging from 5.50% to 6.75%, due in monthly
                                   installments ranging from $151 to $4,212,
                                   including interest, with final payments due from
                                   January through December 2005.                          514,020                  -

                                   Installment notes payable to banks; interest
                                   ranging from 5.50% to 6.50%, due in monthly
                                   installments ranging from $155 to $1,445,
                                   including interest, with final payments due in
                                   January 2006.                                            60,438                  -
                                                                                         ----------------------------
                                                                                         $ 658,996          $       -
                                   ----------------------------------------------------------------------------------
</TABLE>
                                   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 June 30, 2003 are as follows:

<TABLE>
<CAPTION>
                                                                                Amount
                                                                               --------
<S>                                                                            <C>
                                    Six months ended December 31, 2003         $171,193
                                    Year ended December 31, 2004                341,539
                                    Year ended December 31, 2005                144,174
                                    Year ended December 31, 2006                  2,090
                                                                               --------
                                                                               $658,996
                                                                               --------
</TABLE>

6.      Supplemental               Other noncash activities included in the
        Cash Flow                  determination of net loss are as follows:
        Information
--------------------------------------------------------------------------
<PAGE>


Six months ended June 30,                                         2003
--------------------------------------------------------------------------

Lease income, net of interest expense on
notes payable realized as a result of
direct payment of principal by lessee to bank                   $ 157,008

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

               Noncash investing and financing activities include the following:

Six months ended June 30,                                        2003
---------------------------------------------------------------------------

Debt assumed in connection with purchase
     of computer equipment                                     $  816,004
---------------------------------------------------------------------------

       Item 2: Management's Discussion and Analysis of Financial Condition
                            and Results of Operations


CRITICAL ACCOUNTING POLICIES

Financial Reporting Release No. 60, which was released by the Securities and
Exchange Commission, requires all companies to include a discussion of critical
accounting policies or methods used in the preparation of financial statements.
Our significant accounting policies are described in Note 1 of the Notes to the
Financial Statements. The significant accounting policies that we believe are
the most critical to aid in fully understanding our reported financial results
include the following:

COMPUTER EQUIPMENT

Commonwealth Capital Corp, on behalf of the Partnership and other affiliated
partnerships, acquires computer equipment subject to associated debt obligations
and lease revenue and allocates a participation in the cost, debt and lease
revenue to the various partnerships based on certain risk factors.
The Partnership will acquire equipment with no associated debt obligations with
the original contributions. The Partnership plans on acquiring equipment leases
with associated debt obligations from the monthly rental payments associated
with the equipment acquired with its original capital contributions.

REVENUE RECOGNITION

Through June 30, 2003, the Partnership has only entered into operating leases.
Lease revenue is recognized on a monthly basis in accordance with the terms of
the operating lease agreements.
<PAGE>

The Partnership reviews a customer's credit history extending credit and
establishes provisions for uncollectible accounts 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. Depreciation on computer
equipment for financial statement purposes is based on the straight-line method
over estimated useful lives of four years.

Liquidity and Capital Resources

The Partnership's primary source of capital for the six months ended June 30,
2003 was contributions of approximately $6,285,000. The primary uses of cash for
the six months ended June 30, 2003 were for capital expenditures of new
equipment totaling $1,705,000, offering costs of approximately $688,000, payment
of an advance made by the Partnership to CCC, a related party to the
Partnership, of approximately $156,000 and payments of preferred distributions
to partners of approximately $286,000.

For the six month period ended June 30, 2003, the Partnership generated cash
flows from operating activities of $197,000, which includes a net loss of
$603,000, depreciation and amortization expenses of $411,000. Other noncash
activities included in the determination of net income include direct payments
of lease income by lessees to banks of $157,000.

Cash is invested in money market accounts that invest directly in treasury
obligations pending the Partnership's use of such funds to purchase additional
computer equipment, to pay Partnership expenses or to make distributions to the
Partners. At June 30, 2003, the Partnership had approximately $3,069,000
invested in these money market accounts.

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 June 30, 2003, the Partnership had future minimum rentals on non-cancelable
operating leases of $744,000 for the balance of the year ending December 31,
2003 and $2,648,000 thereafter. At June 30, 2003, the outstanding debt was
$659,000, with interest rates ranging from 5.50% to 7.75%, and will be payable
through January 2006.

During the six-months ended June 30, 2003, the Partnership made a non-interest
bearing advance to CCC, a related party to the Partnership, in the amount of
approximately $156,000. This advance, as well as potential future advances, was
and will be made at the discretion of the General Partner. CCC, through its
indirect subsidiaries, including the General Partner of the Partnership, earns
fees based on revenues and new lease purchases from this fund. CCC, through its
indirect subsidiaries, including the General Partner of the Partnership, earns
fees based on revenues and new lease purchases from this fund. CCC intends to
repay the receivable via the offsetting of acquisition and debt placement fees
over the next several fiscal years.


<PAGE>

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

The Partnership's share of the computer equipment in which they participate at
June 30, 2003 was approximately $8,000, which is included in the Partnership's
fixed assets on their balance sheet, and the total cost of the equipment shared
by the Partnership with other partnerships at June 30, 2003 was approximately
$48,000. The Partnership did not participate in shared equipment as of December
31, 2002.

Results of Operations

                        Three Months Ended June 30, 2003
                        --------------------------------

For the period ended June 30, 2003, the Partnership recognized income of
$318,000 and expenses of $711,000, resulting in a net loss of $393,000.

Lease income was approximately $313,000 for the quarter ended June 30, 2003. The
Partnership has entered into approximately 16 new leases during the quarter
ended June 30, 2003.

Operating expenses of approximately $427,000, excluding depreciation, primarily
consist of professional fees of approximately $50,000, due diligence of
approximately $61,000, outside service fees of approximately $10,000,
conventions of $9,000 and reimbursement of expenses to CCC for administration
and operation of the Partnership of approximately $85,000.

Organizational costs were approximately $44,000 for the period ended June 30,
2003.

The equipment management fee is approximately 5% of the gross lease revenue
attributable to equipment that is subject to operating leases. The equipment
management fee is approximately $16,000 for the period ended June 30, 2003.

Depreciation and amortization expenses consist of depreciation on computer
equipment and amortization of equipment acquisition fees. The expenses totaled
approximately $214,000 for the period ended June 30, 2003.


<PAGE>

                         Six Months Ended June 30, 2003
                         ------------------------------

For the six months ended June 30, 2003, the Partnership recognized income of
$590,000 and expenses of $1,193,000 resulting in a net loss of $603,000.

Lease income was approximately $583,000 for the six months ended June 30, 2003.
The Partnership has entered into approximately 91 leases through the six months
ended June 30, 2003

Operating expenses of approximately $665,000, excluding depreciation, primarily
consist of professional fees of approximately $83,000, due diligence of
approximately $72,000, outside service fees of approximately $21,000 and
reimbursement of expenses to CCC for administration and operation of the
Partnership of approximately $137,000.

Organizational costs were approximately $66,000 for the six months ended June
30, 2003.

The equipment management fee is approximately 5% of the gross lease revenue
attributable to equipment that is subject to operating leases. The equipment
management fee is approximately $29,000 for the six months ended June 30, 2003.

Depreciation and amortization expenses consist of depreciation on computer
equipment and amortization of equipment acquisition fees. The expenses totaled
approximately $411,000 for the six months ended June 30, 2003.

                        RECENT ACCOUNTING PRONOUNCEMENTS

                                    SFAS 150

In May 2003, the FASB issued FASB Statement No. 150, Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity, which
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or an asset in some circumstances). Many of those instruments
were previously classified as equity. SFAS is applicable immediately for
financial instruments entered into or modified after May 31, 2003 and otherwise
shall be effective at the beginning of the first interim period beginning after
June 15, 2003. The Partnership believes that the adoption of SFAS 150 will not
have an impact on its financial position and results of operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Inapplicable

Item 4. Controls and Procedures

The Chief Executive Officer and a Financial Officer of the Partnership have
conducted a review of the Partnership's disclosure controls and procedures as of
June 30, 2003.


<PAGE>

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, 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 a
Financial Officer have concluded that the Partnership's disclosure controls (as
defined in pursuant to Rule 13a-14 c 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.

Part II: OTHER INFORMATION

                      Commonwealth Income & Growth Fund IV


     Item 1. Legal Proceedings.

             Inapplicable

     Item 2. Changes in Securities.


             Inapplicable

     Item 3. Defaults Upon Senior Securities.


             Inapplicable

     Item 4. Submission of Matters to a Vote of Securities Holders.


             Inapplicable


     Item 5. Other Information.


             Inapplicable

     Item 6. Exhibits and Reports on Form 8-K.

             a) 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


<PAGE>

                             31.1 THE RULE 15d-14(a)

I, George Springsteen certify that:

1. I have reviewed this quarterly report on Form 10-Q of Commonwealth Income &
Growth Fund IV (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)) and internal control over financing
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) Designed such internal control over financial reporting, or caused such
     internal control over financial reporting to be designed under our
     supervision, to provide reasonable assurance regarding the reliability of
     financial reporting and the preparation of financial statements for
     external purposes in accordance with generally accepted accounting
     principals;

     (c) 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

     (d) 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/ George S. Springsteen
-------------------------
George S. Springsteen
Chief Executive Officer
August 14, 2003
<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 IV (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)) and internal control over financing
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) Designed such internal control over financial reporting, or caused such
     internal control over financial reporting to be designed under our
     supervision, to provide reasonable assurance regarding the reliability of
     financial reporting and the preparation of financial statements for
     external purposes in accordance with generally accepted accounting
     principals;

     (c) 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

     (d) 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
August 14, 2003


<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 IV,
(the "Company") on Form 10-Q for the quarter ending June 30, 2003, as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), I,
George S. Springsteen, Chief Executive Officer of the Company, certify, pursuant
to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act
of 2002, that:

         (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/ George S. Springsteen
-------------------------
George S. Springsteen
Chief Executive Officer
August 14, 2003

<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 IV,
(the "Company") on Form 10-Q for the quarter ending June 30, 2003, 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. ss. 1350, as adopted pursuant to ss. 906 of the
Sarbanes-Oxley Act of 2002, that:

         (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
August 14, 2003


<PAGE>


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


August 14, 2003                           By: /s/ George S. Springsteen
---------------                               -------------------------
Date                                      George S. Springsteen
                                          President