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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q


(Mark one)




|  |                                                                                      
|- | -------------------------------------------------------------------------------------
|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2006.


OR




|  |                                                                                               
|- | ----------------------------------------------------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
     SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to
 .


Commission file no. 33-13437


DEL TACO INCOME PROPERTIES IV


a California limited partnership


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|California                                                         |  | 33-0241855                                 
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification Number)
|                                                                  
|25521 Commercentre Drive, Lake Forest, California                  |  | 92630                                      
|(Address of principal executive offices)                           |  | (Zip Code)                                 

(949) 462-9300


(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 12 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 þ No o


Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of accelerated filer and large
accelerated filer in
Rule 12b-2 of the
Exchange Act (check one):


Large accelerated
filer o Accelerated
filer o Non-accelerated
filer þ


Indicate by check mark whether the registrant is a shell
company (as defined in
Rule 12b-2 of the
Exchange
Act).  Yes o No þ










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DEL TACO INCOME PROPERTIES IV
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at March 31, 2006 (Unaudited) and
December 31, 2005
    
    
    3Condensed Statements of Income for the three months ended
March 31, 2006 and 2005 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the three months ended
March 31, 2006 and 2005 (Unaudited)
    
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    
    6Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    8Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    10Item 4. Controls and Procedures
    
    
    10PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    
    11SIGNATURE
    
    
    12EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
 -2-




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PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO INCOME PROPERTIES IV
 
 CONDENSED BALANCE SHEETS
 March 31,
    
    
    December 31,2006
    
    
    2005(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    134,082
    
    
    $
    150,403Receivable from Del Taco LLC
    
    
    37,414
    
    
    
    38,934Deposits
    
    
    552
    
    
    
    400Total current assets
    
    
    172,048
    
    
    
    189,737PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,236,700
    
    
    
    1,236,700Buildings and improvements
    
    
    1,289,860
    
    
    
    1,289,860Machinery and equipment
    
    
    484,789
    
    
    
    484,7893,011,349
    
    
    
    3,011,349Lessaccumulated depreciation
    
    
    1,374,317
    
    
    
    1,360,5001,637,032
    
    
    
    1,650,849$
    1,809,080
    
    
    $
    1,840,586LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    37,702
    
    
    $
    37,993Accounts payable
    
    
    22,112
    
    
    
    5,923Total current liabilities
    
    
    59,814
    
    
    
    43,916OBLIGATION TO GENERAL PARTNER
    
    
    137,953
    
    
    
    137,953PARTNERS EQUITY:Limited partners; 165,375 units outstanding at March 31, 2006
and December 31, 2005
    
    
    1,626,333
    
    
    
    1,673,263General partner-Del Taco LLC
    
    
    (15,020
    )
    
    
    (14,546
    )1,611,313
    
    
    
    1,658,717$
    1,809,080
    
    
    $
    1,840,586
  -3-




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DEL TACO INCOME PROPERTIES IV
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months EndedMarch 31,2006
    
    
    2005RENTAL REVENUES
    
    $
    110,004
    
    
    $
    107,923EXPENSES:General and administrative
    
    
    36,935
    
    
    
    34,705Depreciation
    
    
    13,817
    
    
    
    13,81750,752
    
    
    
    48,522Operating income
    
    
    59,252
    
    
    
    59,401OTHER INCOME:Interest
    
    
    554
    
    
    
    463Other
    
    
    200
    
    
    
    225Net income
    
    $
    60,006
    
    
    $
    60,089Net income per limited
partnership unit (Note 2)
    
    $
    0.36
    
    
    $
    0.36Number of units used in computing per unit amounts
    
    
    165,375
    
    
    
    165,375
  -4-




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DEL TACO INCOME PROPERTIES IV
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Three Months EndedMarch 31,2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    60,006
    
    
    $
    60,089Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    13,817
    
    
    
    13,817Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    1,520
    
    
    
    6,111Deposits
    
    
    (152
    )
    
    
    66Payable to limited partners
    
    
    (291
    )
    
    
    (124
    )Accounts payable
    
    
    16,189
    
    
    
    25,219Net cash provided by operating activities
    
    
    91,089
    
    
    
    105,178CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (107,410
    )
    
    
    (98,372
    )Net increase (decrease) in cash
    
    
    (16,321
    )
    
    
    6,806Beginning cash balance
    
    
    150,403
    
    
    
    140,285Ending cash balance
    
    $
    134,082
    
    
    $
    147,091
  -5-




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DEL TACO INCOME PROPERTIES IV
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2006
 UNAUDITED
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   NOTE 3  LEASING ACTIVITIES
  -6-




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DEL TACO INCOME PROPERTIES IV
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 MARCH 31, 2006
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES  continued
  NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  NOTE 6
 PAYABLE TO LIMITED PARTNERS
  NOTE 7
 ACQUISITION OF GENERAL PARTNER
  -7-




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
    Results of Operations
   Three Months EndedMarch 31,2006
    
    
    2005Orangethorpe Ave., Placentia, CA
    
    $
    43,187
    
    
    $
    41,737Lakeshore Drive, Lake Elsinore, CA
    
    
    43,923
    
    
    
    43,188Highland Ave., San Bernardino, CA
    
    
    22,894
    
    
    
    22,998Total
    
    $
    110,004
    
    
    $
    107,923
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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations  continued
  Percentage of TotalGeneral & Administrative ExpenseThree Months EndedMarch 31,2006
    
    
    2005Accounting fees
    
    
    79.30
    %
    
    
    76.15
    %Distribution of information
to limited partners
    
    
    20.70
    
    
    
    23.85100.00
    %
    
    
    100.00
    %
   Significant Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  Critical Accounting Policies and Estimates
 
 -9-




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations  continued
 Property and Equipment:
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4. Controls and Procedures
       -10-




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PART II. OTHER INFORMATION
  
   31.1
    
    Ronald Powells Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to Subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
   -11-




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SIGNATURE
  DEL TACO INCOME PROPERTIES IV
(a California limited partnership)
Registrant
Del Taco LLC
General PartnerDate: May 12, 2006
    /s/ Steven L. BrakeSteven L. BrakeTreasurer -12-




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Exhibit Index
 31.1
    
    Ronald Powells Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to Subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 -13-