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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 June 30, 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 June 30, 2006 (Unaudited) and December 31, 2005
    
    
    3Condensed Statements of Income for the three and six months ended June 30, 2006 and 2005 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the six months ended June 30, 2006 and 2005 (Unaudited)
    
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    9Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    11Item 4. Controls and Procedures
    
    
    12PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    
    13SIGNATURE
    
    
    14EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
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PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO INCOME PROPERTIES IV
 
 CONDENSED BALANCE SHEETS
 June 30,
    
    
    December 31,2006
    
    
    2005(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    131,568
    
    
    $
    150,403Receivable from Del Taco LLC
    
    
    38,473
    
    
    
    38,934Deposits
    
    
    742
    
    
    
    400Total current assets
    
    
    170,783
    
    
    
    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
    
    
    1,388,134
    
    
    
    1,360,5001,623,215
    
    
    
    1,650,849$
    1,793,998
    
    
    $
    1,840,586LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    33,395
    
    
    $
    37,993Accounts payable
    
    
    8,764
    
    
    
    5,923Total current liabilities
    
    
    42,159
    
    
    
    43,916OBLIGATION TO GENERAL PARTNER
    
    
    137,953
    
    
    
    137,953PARTNERS EQUITY:Limited
partners; 165,375 units outstanding at June 30, 2006 and December 31, 2005
    
    
    1,628,880
    
    
    
    1,673,263General partner-Del Taco LLC
    
    
    (14,994
    )
    
    
    (14,546
    )1,613,886
    
    
    
    1,658,717$
    1,793,998
    
    
    $
    1,840,586
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DEL TACO INCOME PROPERTIES IV
 
 CONDENSED STATEMENTS OF INCOME
 (UNAUDITED)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005RENTAL REVENUES
    
    $
    115,721
    
    
    $
    116,001
    
    
    $
    225,726
    
    
    $
    223,924EXPENSES:General and administrative
    
    
    8,554
    
    
    
    9,004
    
    
    
    45,489
    
    
    
    43,709Depreciation
    
    
    13,817
    
    
    
    13,817
    
    
    
    27,634
    
    
    
    27,63422,371
    
    
    
    22,821
    
    
    
    73,123
    
    
    
    71,343Operating income
    
    
    93,350
    
    
    
    93,180
    
    
    
    152,603
    
    
    
    152,581OTHER INCOME:Interest
    
    
    504
    
    
    
    498
    
    
    
    1,057
    
    
    
    961Other
    
    
    100
    
    
    
    50
    
    
    
    300
    
    
    
    275Net income
    
    $
    93,954
    
    
    $
    93,728
    
    
    $
    153,960
    
    
    $
    153,817Net income per limited
partnership unit (note 2)
    
    $
    0.56
    
    
    $
    0.56
    
    
    $
    0.92
    
    
    $
    0.92Number of units used in computing
per unit amounts
    
    
    165,375
    
    
    
    165,375
    
    
    
    165,375
    
    
    
    165,375
  -4-




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DEL TACO INCOME PROPERTIES IV
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (UNAUDITED)
 Six Months EndedJune 30,2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    153,960
    
    
    $
    153,817Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    27,634
    
    
    
    27,634Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    461
    
    
    
    7,055Deposits
    
    
    (342
    )
    
    
    133Payable to limited partners
    
    
    (4,598
    )
    
    
    512Accounts payable
    
    
    2,841
    
    
    
    (1,859
    )Net cash provided by operating activities
    
    
    179,956
    
    
    
    187,292CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (198,791
    )
    
    
    (203,673
    )Net decrease in cash
    
    
    (18,835
    )
    
    
    (16,381
    )Beginning cash balance
    
    
    150,403
    
    
    
    140,285Ending cash balance
    
    $
    131,568
    
    
    $
    123,904
  -5-




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DEL TACO INCOME PROPERTIES IV
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 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
 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES  continued
   NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  NOTE 6  PAYABLE TO LIMITED PARTNERS
  -7-




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DEL TACO INCOME PROPERTIES IV
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006
 UNAUDITED
 NOTE 7  ACQUISITION OF GENERAL PARTNER
  -8-




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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 Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Orangethorpe Ave., Placentia, CA
    
    $
    45,099
    
    
    $
    44,552
    
    
    $
    88,287
    
    
    $
    86,289Lakeshore Drive, Lake Elsinore, CA
    
    
    47,253
    
    
    
    47,243
    
    
    
    91,176
    
    
    
    90,431Highland Ave., San Bernardino, CA
    
    
    23,369
    
    
    
    24,206
    
    
    
    46,263
    
    
    
    47,204Total
    
    $
    115,721
    
    
    $
    116,001
    
    
    $
    225,726
    
    
    $
    223,924
  -9-




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations  continued
  Percent of TotalGeneral & Administrative ExpenseThree Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2006
    
    2005
    
    2006
    
    2005Accounting fees
    
    
    61.04
    %
    
    
    55.20
    %
    
    
    77.69
    %
    
    
    77.13
    %Distribution of information
to limited partners
    
    
    38.96
    %
    
    
    44.80
    %
    
    
    22.31
    %
    
    
    22.87
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  -10-




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations  continued
 Critical Accounting Policies and Estimates
  Property and Equipment:
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  -11-




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Item 4. Controls and Procedures
       -12-




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PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 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
 (b)
    
    ReportsNone.
 -13-




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SIGNATURE
  DEL TACO INCOME PROPERTIES IV(a California limited partnership)RegistrantDel Taco LLCGeneral PartnerDate: August 11, 2006
    
    /s/ Steven L. BrakeSteven L. BrakeTreasurer
 -14-




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Exhibit Index
 Exhibits
    
    Description31.1
    
    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