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

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

                                   FORM 10-QSB

(Mark One)

       (X)     Quarterly Report Under Section 13 or 15(d)of the
                        Securities Exchange Act of 1934
                For the quarterly period ended September 30, 2003

                        Commission File Number: 333-11625

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

                       CAPITAL ALLIANCE INCOME TRUST LTD.,
                         A REAL ESTATE INVESTMENT TRUST
               --------------------------------------------------

             (Exact name of registrant as specified in its charter)

           Delaware                                          94-3240473
(State or other Jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                         Identification Number)

      50 California Street
      Suite 2020
      San Francisco, California                               94111
      -------------------------                               -----
(Address of principal executive office)                    (zip code)

                                 (415) 288-9575
               --------------------------------------------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                    Yes  X                No
                                        ---                 ---

As of November 12, 2003, the registrant's common shares closed at $19.35 per
share and the aggregate market value of the registrant's common shares held by
non-affiliates of the registrant was approximately $6,211,350. At that date
approximately 321,000 shares of $.01 par value common stock were held by
non-affiliates of the registrant. The shares are listed on the American Stock
Exchange.

                                       1
<PAGE>
                                TABLE OF CONTENTS



PART I

     ITEM 1          FINANCIAL STATEMENTS                                  3-5

                     NOTES TO FINANCIAL STATEMENTS                        6-22

     ITEM 2          MANAGEMENT'S DISCUSSION AND ANALYSIS                23-29

     ITEM 3          CONTROLS AND PROCEDURES                                30

PART II

     OTHER INFORMATION                                                      30

     SIGNATURES                                                             32

     CERTIFICATION PURSUANT TO THE SARBANES-OXLEY ACT                       33

     CERTIFICATION OF FORM 10-QSB                                        34-35

     EXHIBITS                                                            36-38






                                     PART I
                                     ITEM 1.


                              FINANCIAL STATEMENTS

                                   [Pages 3-5]

                                       2


<PAGE>
                                     PART I
                                     ITEM 3.

                             CONTROLS AND PROCEDURES

(A) Evaluation of Disclosure Controls and Procedures. The principal executive
and financial officers of the Trust have reviewed and evaluated the
effectiveness of the design and operation of the Trust's disclosure controls and
procedures within the 90 days preceding the date of this report and have
determined (i) that such controls and procedures are operating properly and
adequately to ensure that material information relating to the Trust's
operations and required to be disclosed in this report is being made known to
them by the responsible persons involved in the Trust's operations; and (ii)
that there are neither significant deficiencies in the design and operation of
such controls and procedures that could affect the Trust's ability to record,
process, summarize and report financial data nor is there any fraud that
involves management or other employees who have a significant role in the
Trust's internal controls. The results of such review and evaluation have been
disclosed to the Trust's auditors and the Trust's audit committee.

(B) Changes in Internal Controls. There have been no significant changes in the
Trust's internal controls or in other factors that could significantly affect
those controls subsequent to the date of their evaluation. Accordingly, no
corrective actions with regard to such controls or procedures have been
required.


                                     PART II

                                OTHER INFORMATION

ITEM 1 LEGAL PROCEEDING

       The Trust is not involved in any legal proceedings at this time.

ITEM 2     CHANGES IN SECURITIES

       During the three-month period ending September 30, 2003, the Trust did
       not purchase any common shares and options for 5,500 common shares were
       exercised. 2,000 of the exercised options were satisfied pursuant to a
       S-8 filing.

ITEM 3     DEFAULTS UPON SENIOR SECURITIES

       None

ITEM 4     SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

         The Trust's 2003 Annual Meeting, at which a quorum was present, was
       duly convened on June 27, 2003 and recessed to August 7, 2003. At the
       Annual Meeting, Directors Thomas B. Swartz and Harvey Blomberg were
       reelected as Class III Directors for a three-year term with 561,001 in
       favor, 3,906 abstaining and 557,485 in favor and 4,088 abstaining,
       respectively. Directors Stanley C. Brooks, Dennis R. Konczal, Richard J.
       Wrensen, and Donald R. Looper, whose terms continue for one, one, two,
       and two years respectively, continue as directors.

                                       30
<PAGE>
       The Shareholders approved the amendment of the Corporation's Certificate
       of Incorporation to increase the Corporation's authorized capital to
       3,600,000 shares consisting of 2,000,000 authorized Shares of Common
       Stock with a par value of $0.01 per Share and 1,600,000 authorized Shares
       of Preferred Stock with a par value of $.01 per Share with 318,303 or
       50.22% of the shares issued, outstanding and entitled to vote approving
       the amendment, 12,534 against and 5,965 abstaining. 228,105 shares did
       not vote on this proposal.

       The Shareholders ratified the selection of Novogradac & Company LLP as
       independent public accountants and auditors for the Trust with 477,888
       shares voting in favor of such approval, 46,974 shares against, and
       40,045 abstaining.


ITEM 5     OTHER INFORMATION

       Press Release, Exhibit "A" attached hereto and incorporated herein, dated
       November 19, 2003, announcing Results of Earnings and Revenues for the
       3rd Quarter 2003.

       Press Release, Exhibit "B" attached hereto and incorporated herein, dated
       July 28, 2003, announcing Fifth Consecutive Dividend at $1.80 Annual
       Rate.

       Press Release, Exhibit "C" attached hereto and incorporated herein, dated
       August 12, 2003, announcing Results of Earnings and Revenues for the 2nd
       Quarter 2003.


ITEM 6     EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits
         --------

         Exhibit No.
         3.1   Charter Certificate of Incorporation and Amendment No. 1 (1)
         3.2   Bylaws of the Registrant (1)
         3.3   Certificate of Amendment of Certificate of Incorporation (5)
         4.1   Form of Stock Certificate of Common Shares of the Registrant (2)
         10.1  Form of Management Agreement between the Registrant and Capital
               Alliance Advisors, Inc. (1)
         10.2  Form of Indemnity Agreement between the Registrant and its
               Directors and Officers (1)
         10.3  Form of Loan Origination and Loan Servicing Agreement between the
               Registrant and Capital Alliance Advisors, Inc. (1)
         23.4  Consent of Landels Ripley & Diamond, LLP (4)
         23.5  Consent of Novogradac & Company LLP (4)
         24.1  Power of Attorney of Thomas B. Swartz (1)
         24.2  Power of Attorney of Dennis R. Konczal (1)
         24.4  Power of Attorney of Stanley C. Brooks (1)
         24.5  Power of Attorney of Harvey Blomberg (1)
         24.7  Power of Attorney of Richard J. Wrensen (5)
         24.8  Power of Attorney of Donald R. Looper (6)

(1)      These exhibits were previously contained in Registrant's Registration
         Statement filed on Form S-11 with the Commission on September 9, 1996,
         and are incorporated by reference herein.

                                       31
<PAGE>
(2)      These exhibits were previously contained in Amendment No. 1 to the
         Registrant's Registration Statement filed on Form S-11 with the
         Commission on January 15, 1997, and are incorporated by reference
         herein.

(3)      These exhibits were previously contained in Post-Effective Amendment
         No. 3 to the Registrant's Registration Statement filed on Form S-11
         with the Commission on December 10, 1997, and are incorporated by
         reference herein.

(4)      These exhibits were previously contained in Form 10-Q for the period
         ending June 30, 1997 filed with the Commission on August 14, 1997, and
         are incorporated by reference herein.

(5)      This exhibit was previously contained in Form 10-K for the period
         ending December 31, 1998 filed with the Commission on April 10, 1999,
         and is incorporated by reference herein.

(6)      This exhibit was previously contained in Form 10-KSB for the period
         ending December 31, 2002 filed with the Commission on April 15, 2003,
         and is incorporated by reference herein.

(b)      Reports on Form 8-K.
         -------------------

         No reports on Form 8-K were filed for the three months ended September
30, 2003



                                   SIGNATURES


 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 hereunto duly authorized.


                       CAPITAL ALLIANCE INCOME TRUST LTD.,
                         A Real Estate Investment Trust


Dated:  November 18, 2003                By:/s/ Thomas B. Swartz
                                            --------------------
                                            Thomas B. Swartz,
                                            Chairman and Chief Executive Officer


Dated:  November 18, 2003                By:/s/ Richard J. Wrensen
                                            ----------------------
                                         Richard J. Wrensen,
                                         Chief Financial Officer and
Executive Vice President

                                       32
<PAGE>
                                  CERTIFICATION


CERTIFICATION 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 Capital Alliance Income Trust Ltd.
(the "Company") on Form 10-QSB for the period ending September 30, 2003 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Thomas B. Swartz, Chief Executive Officer of the Company, Richard J. Wrensen,
Chief Financial Officer of the Company, and I, Dennis R, Konczal, President and
Chief Operating 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 compiles 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.



Date:      November 17, 2003


                            /s/Thomas B. Swartz
                            ------------------
                            Thomas B. Swartz
                            Chairman and Chief Executive Officer



                            /s/Richard J. Wrensen
                            ---------------------
                            Richard J. Wrensen
                            Chief Financial Officer and Executive Vice President




                            /s/Dennis R. Konczal
                            --------------------
                            Dennis R. Konczal
                            President and Chief Operating Officer



                                       33
<PAGE>
                                  CERTIFICATION
               OF FORM 10Q OF CAPITAL ALLIANCE INCOME TRUST LTD.,
                     A REAL ESTATE INVESTMENT TRUST FOR THE
                        PERIOD ENDING SEPTEMBER 30, 2003


Under Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934

The undersigned each individually certifies that:

1.   I have reviewed this Form 10QSB, dated November 17, 2003 of Capital
     Alliance Income Trust, Ltd., A Real Estate Investment Trust:

2.   Based on my knowledge, this quarterly 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 quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flow of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers are responsible for establishing
     and maintaining disclosure controls and procedures (as defined in Exchange
     Act Rules 13a-14 and 15d-14) for the registrant and we have:

     o    designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, is made known to us
          by others within those entities, particularly during the period in
          which this report in being prepared;
     o    evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date); and
     o    presented in this report our conclusions about the effectiveness of
          the disclosure controls and procedures based on our evaluation as of
          the Evaluation Date;

5.   The registrant's other certifying officers have disclosed, based on our
     most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors:

     o    all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     o    any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officers have indicated in this quarterly
     report, whether there were significant changes in internal controls or in
     other factors that could significantly affect internal controls subsequent
     to the date of our most recent evaluation, including any corrective actions
     with regard to significant deficiencies and material weaknesses.

                                       34
<PAGE>
Date: November 17, 2003


                            /s/Thomas B. Swartz
                            -------------------
                            Thomas B. Swartz
                            Chairman and Chief Executive Officer



                            /s/Richard J. Wrensen
                            ---------------------
                            Richard J. Wrensen
                            Chief Financial Officer and Executive Vice President



                            /s/Dennis R. Konczal
                            --------------------
                            Dennis R. Konczal
                            President and Chief Operating Officer


                                       35
<PAGE>
                                   EXHIBIT "A"

                       CAPITAL ALLIANCE INCOME TRUST LTD.
                      ANNOUNCES EARNINGS FOR THIRD QUARTER

SAN FRANCISCO - (BUSINESS WIRE)- November 19, 2003 - Capital Alliance Income
Trust Ltd. ("CAIT") (AMEX: CAA-News) a residential mortgage REIT, operating both
mortgage investment and mortgage banking businesses, announced net income of
$101,708 ($.06 basic and $0.05 diluted per share) for the three months ending
September 30, 2003 and $708,784 ($1.11 basic and 0.95 per share diluted for the
nine months ended September 30, 2003, as compared to net income of $208,685
($0.29 basic and $0.23) diluted per share) and $825,250 ($1.35 basic and $1.12
diluted per share), respectively, for the like periods in 2002. Revenues were
reported as $537,037 for the three months ending September 30, 2003 and
$1,969,290 for the nine month period ending September 30, 2003, as compared to
$639,108 and $2,138,860 for the same periods in 2002.

As a REIT, CAIT is required to distribute 90% of its taxable income. Earlier
this month CAIT's Board of Directors declared the monthly preferred dividend of
$0.12 per share, payable November 19, 2003 but has postponed a decision on the
quarterly common dividend until mid-December 2003.

Thomas Swartz, CAIT's Chairman and Chief Executive Officer explained that CAIT's
earnings were unfavorably impacted by two REO losses of $155,735 recognized in
Capital Alliance Funding Corporation, CAIT's unconsolidated mortgage banking
business. The losses were incurred from two loans to the same borrower. Neither
CAIT nor its mortgage banking business has participated in any other transaction
with this borrower. During the third quarter, CAIT's loan loss reserve increased
$40,000 to $240,000 and the mortgage banking business's loan loss reserve
increased $15,000 to $100,000.

CAIT's Form 10-QSB and its financial statements included therein, scheduled to
be filed, will be duly certified pursuant to the Sarbanes-Oxley Act of 2002.

CAIT is a specialty residential lender, which originates and invests in
conforming and high-yielding, non-conforming residential mortgage loans on
one-to-four-unit-residential properties located primarily in California and
other western states. It also originates loans for sale to investors, on a
whole-loan basis for cash through its mortgage banking subsidiary, Capital
Alliance Funding Corporation. All loans with a combined loan-to-value ratio of
greater than 75% of the collateral's appraised value at the time of funding are
pre-sold into the secondary market. Only residential loans with a combined
loan-to-value of 75% or less are retained in CAIT's portfolio of mortgage
investments.

This document contains "forward-looking statements" (within the meaning of the
Private Securities Litigation Reform Act of 1995) that inherently involve risks
and uncertainties. CAIT's actual results and liquidity can differ materially
from those anticipated in these forward-looking statements because of changes in
the level and composition of CAIT's investments and unforeseen factors. As
discussed in CAIT's filings with the Securities and Exchange Commission, these
factors may include, but are not limited to, changes in general economic
conditions, the availability of suitable investments, fluctuations in and market
expectations for fluctuations in interest rates and levels of mortgage
prepayments, deterioration in credit quality and ratings, the effectiveness of
risk management strategies, the impact of leverage, the liquidity of secondary
markets and credit markets, increases in costs and other general competitive
factors.

Contact:          Capital Alliance Income Trust Ltd., San Francisco
                  Richard J. Wrensen, EVP & CFO - 415/288-9575
                  rwrensen@calliance.com
                  www.calliance.com

                                       36
<PAGE>
                                   EXHIBIT "B"

                  CAPITAL ALLIANCE INCOME TRUST LTD. ANNOUNCES
            FIFTH CONSECUTIVE QUARTERLY DIVIDEND AT $1.80 ANNUAL RATE

SAN FRANCISCO - (BUSINESS WIRE) - July 28, 2003 - Capital Alliance Income Trust
Ltd. ("CAIT") (AMEX: CAA-news) announced that its Board has declared a dividend
of $0.45 per Common Share for the third quarter of 2003. This is CAIT's fifth
consecutive quarterly dividend at an annualized rate of $1.80. Based on the
current common stock price of $19.08 per share, the annualized dividend yield is
9.43%. The dividend is payable on August 15, 2003 to shareholders of record on
August 7, 2003.

CAIT is a specialty residential lender, which originates and invests in
conforming and high-yielding, non-conforming residential mortgage loans on
one-to-four-unit-residential properties located primarily in California and
other western states. It also originates loans for sale to investors, on a
whole-loan basis for cash through its mortgage banking subsidiary, Capital
Alliance Funding Corporation. All loans with a combined loan-to-value ratio of
greater than 75% of the collateral's appraised value at the time of funding are
pre-sold into the secondary market. Only residential loans with a combined
loan-to-value of 75% or less are retained in CAIT's portfolio of mortgage
investments.

This document contains "forward-looking statements" (within the meaning of the
Private Securities Litigation Reform Act of 1995) that inherently involve risks
and uncertainties. CAIT's actual results and liquidity can differ materially
from those anticipated in these forward-looking statements because of changes in
the level and composition of CAIT's investments and unforeseen factors. As
discussed in CAIT's filings with the Securities and Exchange Commission, these
factors may include, but are not limited to, changes in general economic
conditions, the availability of suitable investments, fluctuations in and market
expectations for fluctuations in interest rates and levels of mortgage
prepayments, deterioration in credit quality and ratings, the effectiveness of
risk management strategies, the impact of leverage, the liquidity of secondary
markets and credit markets, increases in costs and other general competitive
factors.

Contact:          Capital Alliance Income Trust Ltd., San Francisco
                  Richard J. Wrensen, EVP & CFO - 415/288-9575
                  rwrensen@calliance.com
                  www.calliance.com

                                       37
<PAGE>
                                   EXHIBIT "C"

                       CAPITAL ALLIANCE INCOME TRUST LTD.
                       ANNOUNCES RECORD QUARTERLY EARNINGS

SAN FRANCISCO - (BUSINESS WIRE)- August 12, 2003 - Capital Alliance Income Trust
Ltd. ("CAIT") (AMEX: CAA-News) a residential mortgage REIT, operating both
mortgage investment and mortgage banking businesses, announced record net income
of $312,929 ($0.55 basic and $0.47 diluted per share) for the three months
ending June 30, 2003 and $607,077 ($1.06 basic and 0.90 diluted) for the six
months ended June 30, 2003, as compared to net income of $309,587 ($0.53 basic
and $0.43) diluted per share) and $616,564 ($1.06 basic and $0.89 diluted per
share), respectively, for the like periods in 2002. Revenues were reported as
$731,620 for the three months ending June 30, 2003 and $1,432,253 for the six
month period ending September 30, 2003, as compared to $758,274 and $1,499,751
for the same periods in 2002.

As a REIT, CAIT is required to distribute 90% of its taxable income. CAIT's
Board of Directors recently declared a cash dividend of $0.45 per share, payable
August 15, 2003. Based upon the closing stock price of August 11, 2003, CAIT's
$1.80 annualized common share dividend yield is 9.86%.

Thomas Swartz, CAIT's Chairman and Chief Executive Officer, noted "the quality
of CAIT's earnings is poised to continue for the remainder of 2003 and our
management team remains focused on creating shareholder value, notwithstanding
the uncertainty afflicting the general economy, residential real estate values,
and recent interest rate volatility. During 2003 CAIT's senior executive
management exercised stock options in acquiring 30,826 common shares."

CAIT's Form 10-QSB and its financial statements included therein, scheduled to
be filed August 14, 2003, will be duly certified pursuant to the Sarbanes-Oxley
Act of 2002.

CAIT is a specialty residential lender, which originates and invests in
conforming and high-yielding, non-conforming residential mortgage loans on
one-to-four-unit-residential properties located primarily in California and
other western states. It also originates loans for sale to investors, on a
whole-loan basis for cash through its mortgage banking subsidiary, Capital
Alliance Funding Corporation. All loans with a combined loan-to-value ratio of
greater than 75% of the collateral's appraised value at the time of funding are
pre-sold into the secondary market. Only residential loans with a combined
loan-to-value of 75% or less are retained in CAIT's portfolio of mortgage
investments. On September 30, 2003 the combined loan to value of CAIT's
portfolio was 68%.

This document contains "forward-looking statements" (within the meaning of the
Private Securities Litigation Reform Act of 1995) that inherently involve risks
and uncertainties. CAIT's actual results and liquidity can differ materially
from those anticipated in these forward-looking statements because of changes in
the level and composition of CAIT's investments and unforeseen factors. As
discussed in CAIT's filings with the Securities and Exchange Commission, these
factors may include, but are not limited to, changes in general economic
conditions, the availability of suitable investments, fluctuations in and market
expectations for fluctuations in interest rates and levels of mortgage
prepayments, deterioration in credit quality and ratings, the effectiveness of
risk management strategies, the impact of leverage, the liquidity of secondary
markets and credit markets, increases in costs and other general competitive
factors.

Contact:          Capital Alliance Income Trust Ltd., San Francisco
                  Richard J. Wrensen, EVP & CFO - 415/288-9575
                  rwrensen@calliance.com
                  www.calliance.com

                                       38