<PAGE>
PAGE 1
                                  SECURITIES AND EXCHANGE COMMISSION

                                        WASHINGTON, D.C.  20549

                                               FORM 10-Q

(Mark one)

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

      For the quarterly period ended September 30, 1996      
                                           
                                


                             OR

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

For the transition period from               to               


                   COMMISSION FILE NUMBER 33-13375

                         IDS LIFE ACCOUNT RE
                                 OF
                     IDS LIFE INSURANCE COMPANY
                                                                   
         (Exact name of registrant as specified in its charter)


               MINNESOTA                         41-0823832
                                                                
   (State or other jurisdiction of           (I.R.S. Employer
    incorporation or organization)            Identification No.)


      IDS TOWER 10, MINNEAPOLIS, MINNESOTA             55440-0010
                                                                    
    (Address of principal executive offices)           (Zip Code)


Registrant's telephone number, including area code   (612) 671-3309



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 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       

<PAGE>
PAGE 2

The Registrant is a separate account of IDS Life Insurance Company
(IDS Life) established pursuant to the insurance laws of the State
of Minnesota for the purposes of funding real estate variable
annuity contracts.  Unless otherwise specifically noted, the
information set forth herein only relates to the operations of the
Registrant (the "Account") and not to the operations of IDS Life.



                  PART 1 - FINANCIAL INFORMATION


Item 1. FINANCIAL STATEMENTS
<PAGE>
PAGE 3
                            IDS LIFE ACCOUNT RE
                                     of
                         IDS LIFE INSURANCE COMPANY

                               BALANCE SHEETS
      
   <TABLE> 
   <CAPTION> 
                                                                     September 30,     December 31,
                                                                        1996              1995
                                                                     (unaudited)                      
    <S>                                                             <C>               <C>
    Assets:
     Cash                                                           $ 8,649,002       $    586,729
     Receivable from IDS Life for contracts sold                             --            300,000
     Investments in unconsolidated joint ventures,
       at fair value (cost of $36,135,146 and
       $35,858,482 at September 30, 1996 
       and December 31, 1995, respectively)                          23,919,625         24,150,472
     Participation in mortgage loan, at fair
       value (cost of $0 at September 30, 1996 
       and December 31, 1995)                                         2,818,599          2,966,207
     Accrued interest on participation in mortgage loan                     544             (5,401)
     Investment in wholly-owned real estate
      property:
       Building, at fair value (cost of $0
         and $14,174,329 at September 30, 1996 and
         December 31, 1995, respectively)                                    --         12,380,339
       Land, at fair value (cost of $0
         at September 30, 1996 and December 31, 1995)                        --          3,915,263
       Deferred borrowing costs, net of accumulated
         amortization of $0 and $157,577 at
         September 30, 1996 and December 31, 1995, respectively              --             23,879
     Other assets                                                             0             43,135
                                                                     
         Total assets                                               $35,387,770       $ 44,360,623
                                                                     
    
    Liabilities:
     Payable to IDS Life for:
       Operating expenses                                           $    43,660       $     76,619
       Contract terminations                                                 --            271,318
     Accrued mortality and expense risk fee                              39,015             40,420
     Accrued asset management fee                                        48,769             50,525
     Liabilities related to wholly-owned
      real estate property:
       Accounts payable and other liabilities                           179,076            244,937
       Accrued real estate taxes                                             --                --
       Mortgage payable                                                      --          7,770,339

                                                                            
         Total liabilities                                              310,520          8,454,158
                                                                           
    
    Contract Owners' Equity:
     Net assets applicable to Variable Annuity 
       contracts in accumulation period                             $35,077,250       $ 35,906,465
                                                                           
    
    Accumulation units outstanding                                   35,475,694         36,353,929
                                                                            
    Net asset value per accumulation unit                           $      0.99       $       0.99
                                                                            
    
    See accompanying notes to financial statements.  
      
<PAGE>
PAGE 4



                                                   IDS LIFE ACCOUNT RE
                                                           of
                                              IDS LIFE INSURANCE COMPANY
    
                                               STATEMENTS OF OPERATIONS
                                                     (unaudited)
    
    
    
    
    
                                                                       For the nine months ended
                                                                     
                                                                       Sep 30,           Sep 30,
                                                                        1996              1995    
                                                                         
    Income:
     Interest income                                                $   211,934       $    198,966
     Account's equity in earnings of 
       unconsolidated joint ventures                                  1,583,737          1,453,176
     Rental income                                                    1,877,789          1,794,031
     Unrealized (depreciation) of participation
       in mortgage loan                                                (147,608)           (27,817)
     Unrealized appreciation of investment in wholly-owned
       real estate property                                                  --            138,764
     Unrealized appreciation (depreciation) of
       investments in unconsolidated joint ventures                    (507,511)            63,824
     Realized depreciation in wholly-owned 
     real estate property                                              (806,698)                --
                                                                     
         Total income                                                 2,211,643          3,620,944
                                                                     
    
    Expenses:
     Asset management fee                                               442,298            445,113
     Mortality and expense risk fee                                     353,838            356,091
     Amortization of deferred organizational
       and borrowing costs                                               19,602             19,389
     Revolving loan interest                                                 --            100,736
     Other operating expenses                                            53,849             56,734
     Operating expenses related to wholly-owned 
      real estate property:
       Interest                                                         551,315            557,096
       Utilities                                                        107,363            121,731
       Repairs and maintenance                                          147,556            172,432
       Property and other taxes                                         153,790            141,352
       Salaries                                                         146,578            125,871
       Management fees                                                   84,854             88,786
       Other                                                             98,450            117,413
                                                                            
         Total expenses                                               2,159,493          2,302,744
                                                                           
    
    Net income                                                      $    52,150       $  1,318,200
                                                                            
    See accompanying notes to financial statements.


<PAGE>
PAGE 5
                                                 IDS LIFE ACCOUNT RE
                                                         of
                                              IDS LIFE INSURANCE COMPANY
    
                                               STATEMENTS OF OPERATIONS
                                                     (unaudited)
       
    
    
                                                                       For the three months ended
                                                                                                              
                                                                        Sep 30,           Sep 30,
                                                                        1996              1995          
                                                                            
    Income:
     Interest income                                                $    78,584       $     66,323
     Account's equity in earnings of 
       unconsolidated joint ventures                                    579,475            488,715
     Rental income                                                      636,645            596,535
     Unrealized appreciation (depreciation) of participation
     in mortgage loan                                                        --            (22,586)
     Change in unrealized appreciation (depreciation) of
       investments in unconsolidated joint ventures                     (19,763)            93,875
     Realized depreciation in wholly-owned
     real estate property                                              (806,698)                --
                                                                            
         Total income                                                   468,243          1,222,862
                                                                            
    
    Expenses:
     Asset management fee                                               149,557            157,266
     Mortality and expense risk fee                                     119,645            125,814
     Amortization of deferred organizational
       and borrowing costs                                                6,676              6,462
     Revolving loan interest                                                 --                 --
     Other operating expenses                                            17,780             24,793
     Operating expenses related to wholly-owned 
      real estate property:
       Interest                                                         183,315            185,214
       Utilities                                                         21,872             17,556
       Repairs and maintenance                                           52,150             67,210
       Property and other taxes                                          48,392             44,692
       Salaries                                                          52,442             45,653
       Management fees                                                   27,874             30,347
       Other                                                             28,234             34,413
                                                                                                              
         Total expenses                                                 707,937            739,420
                                                                            
    
    Net income (loss)                                               $  (239,694)      $    483,442
                                                                            
    See accompanying notes to financial statements.
   <PAGE>
PAGE 6
  



                                              IDS LIFE ACCOUNT RE
                                                      of
                                        IDS LIFE INSURANCE COMPANY
    
                                          STATEMENTS OF CASH FLOWS
                                                (unaudited)
    
    
    
                                                                        For the nine months ended
                                                        
                                                                    Sep 30,           Sep 30,
                                                                        1996              1995       
                                                               
    Cash flows from operating activities:
     Net Income                                                     $   52,150       $   1,318,200
    
     Adjustments to reconcile net income to net cash
     used in operating activities:
       Account's equity in earnings of unconsolidated
         joint ventures                                             (1,583,737)         (1,453,176)
       Change in accrued interest on participation
         in mortgage loan                                               (5,945)              3,965
       Amortization of organizational and borrowing cost                23,879              19,388
       Change in unrealized depreciation of investments
         in unconsolidated joint ventures                              507,511             (63,824)
       Change in unrealized depreciation (appreciation) of
         participation in mortgage loan                                147,608              27,817
       Change in unrealized appreciation of investment 
         in wholly-owned real estate property                               --            (138,764)
       Change in realized depreciation in wholly-owned       
         real estate property                                           806,698                 --
       Change in other assets                                           43,135             (10,485)
       Change in payable to IDS Life for operating expenses            (32,959)              1,834
       Change in accrued mortality and expense risk fee                 (1,405)                  6
       Change in accrued asset management fee                           (1,756)                  7
       Change in payables and other liabilities related
         to wholly-owned real estate property                          (65,861)             34,588
                                                                                                              
         Total adjustments to net income                              (162,832)         (1,578,644)
                                                                
           Net cash used in operating activities                      (110,682)           (260,444)
                                                               
    
    Cash flows from investing activities:                                            
     Capital improvements to wholly-owned real estate property              --            (117,748)
     Distributions received from joint ventures                      1,307,073           1,143,190
     Sale of wholly owned property                                  15,488,904                  --            
                                                                       
           Net cash provided by investing activities                16,795,977           1,025,442
                                                               
    Cash flows from financing activities:
     Proceeds from sales of accumulation units                       2,341,959          19,501,099
     Payments for contract terminations                             (3,194,642)        (17,061,230)       
     Decrease in mortgage payable                                   (7,770,339)            (60,723)
     Change in payable to IDS Life for revolving loan                       --         (2,100,000)
     Contribution for Monmouth                                              --           (685,151)
       renovation loan (joint venture)
                                                          
           Net cash used in financing activities                    (8,623,022)           (406,005)
                                                               
    Net increase in cash                                             8,062,273             358,993
    Balance of cash at beginning of year                               586,729             204,859






                                                               
    Balance of cash at end of period                                $ 8,649,002       $    563,852
    
    
    Supplemental cash flow disclosure:
    Cash paid for mortgage interest & revolving loan                $   551,315       $    657,832
    
    See accompanying notes to financial statements.
    </TABLE>
         <PAGE>
PAGE 7
                                  IDS LIFE ACCOUNT RE
                                          of
                              IDS LIFE INSURANCE COMPANY

                                   September 30, 1996

                             NOTES TO FINANCIAL STATEMENTS
                                      (unaudited)

1.      GENERAL

        In the opinion of the management of IDS Life, the
        accompanying unaudited financial statements for IDS Life
        Account RE (the "Account") contain all adjustments
        (consisting of only normal recurring adjustments) necessary
        to present fairly its balance sheets as of September 30, 1996
        and December 31, 1995; statements of operations for the three
        and nine months ended September 30, 1996 and 1995; and the
        statements of cash flows for the nine months ended September
        30, 1996 and 1995.  These statements are condensed and
        therefore do not include all of the information and footnotes
        required by generally accepted accounting principles for
        complete financial statement disclosure. The statements
        should be read in conjunction with the Account's financial
        statements as of and for the year ended December 31, 1995 and
        the notes thereto contained in the Account's prospectus dated
        April 30, 1996.  The results of operations for the nine
        months ended September 30, 1996 are not necessarily
        indicative of the results expected for the full year.


2.      INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

        Unconsolidated Joint Ventures - Summary Information

        Summary information for the Account of its investments in
        unconsolidated joint ventures for the nine months ended
        September 30, 1996 and 1995 is as follows:

                                         For the nine months ended
                                               September 30
                                            1996          1995

      Account's share of net
       investment income from
       unconsolidated joint ventures   $ 1,583,737    $ 1,453,176  

      Total net investment income of
       unconsolidated joint ventures   $19,697,394    $18,284,571

      Total income of unconsolidated
      joint ventures                  $35,526,000    $34,014,000

 
<PAGE>
PAGE 8
Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL          
         CONDITION AND RESULTS OF OPERATIONS


Financial Condition and Results of Operations

For the Nine Months Ended September 30, 1996 Compared to the Nine
Months Ended September 30, 1995 - 

Net assets decreased from $35,906,465 at December 31, 1995 to
$35,387,770 at September 30, 1996.  During this same time period,
the accumulation unit value remained constant at $.99.  The Account
experienced net terminations amounting to $852,683 for the nine
months ended September 30, 1996 compared to net sales
of $2,439,870 for the nine months ended September 30, 1995.  The
net terminations for the nine months ended September 30, 1996
include approximately $2,000,000 for accumulation units purchased
by IDS Life, which has been used to pay for contract surrenders, as
discussed more fully below.

Recorded net income for the nine months ended September 30, 1996
was $52,150 compared to $1,318,200 for the nine months ended
September 30, 1995.

Interest income for the nine months ended September 30, 1996
primarily represents income earned on the Account's investment in
the participation in a mortgage loan (Riverpoint Shopping Center). 
Income generated from participation in the mortgage loan remained
relatively unchanged compared to the corresponding period in 1995. 
The Silo Electronic store (12,100 sq. ft.) at Riverpoint Shopping
Center vacated its space in the third quarter 1995, and
subsequently filed for bankruptcy. The borrower is pursuing its
legal remedies regarding the remaining amounts due. The borrowers
leased the space to Old Navy Clothing Co.
for five years and rent commenced in July 1, 1996.  The borrower
had notified the lenders that it was experiencing financial
difficulties and had approached the lenders regarding a loan
modification. During the third quarter of 1996, the lenders and
borrower finalized a loan modification whereby they reached an
agreement to defer payment of a portion of the scheduled debt
service payments from September 15, 1995 to July 15, 1996. In
conjunction with the modification agreement, the scheduled maturity
date of the loan has been accelerated to December 31, 1997.
Finally, the lenders have agreed to accept, at certain dates
through June 30, 1997, repayment of the loan at specified amounts.
The repayment of the loan per such agreement would yield the
Lenders, when paid, an amount less than the current carrying amount
of the loan.  However, there can be no assurance that the loan will
be repaid prior to its revised maturity date of December 1997
pursuant to such agreement.

During the third quarter, the borrower notified the Lenders that a
tenant which operates a dry cleaning plant at the site has leaked a
chemical associated with the dry cleaning process that can cause
environmental problems if not handled properly. The lenders have
been advised that the tenant and borrower are currently remediating
the problem. The lenders do not currently expect that the value of
the borrower's property has been materially impaired.
<PAGE>
PAGE 9

For the nine months ended September 30, 1996, the Account
recognized net unrealized depreciation of participation in mortgage
loan of $19,763 as a result of lower effective rents achieved from
the mortgage property upon releasing, as discussed above.

For the nine months ended September 30, 1996, the Account
recognized net unrealized depreciation of investments in
unconsolidated joint ventures of approximately $507,511, primarily
due to a decrease in current assets at Monmouth Associates.
A portion of the decrease was a result of a $4,000,000 cash
distribution in which the Accounts share was $278,800.

Distributions from unconsolidated joint ventures increased for the
nine months ended September 30, 1996 compared to September 30, 1995
primarily due to the Accounts share of Monmouth Associates
distributions of $278,800. The increase was partially offset by
decreased distributions from N/S Associates.

In addition, the Account recorded rental income of $1,877,879 for
the nine months ended September 30, 1996 from its wholly-owned real
estate investment, West Springfield Terrace Apartments, compared to
$1,794,031 for the nine months ended September 30, 1995, primarily
due to modest increases in effective rental rates over the course
of 1995.  Expenses related to the wholly-owned real estate
investment totaled $1,289,906 for the nine months ended September
30, 1996 compared to $1,324,681 for the corresponding period in
1995.

On September 30, 1996 the Account sold land and related
improvements known as the West Springfield Terrace Apartments.
The purchaser was not affiliated with the Account and the sale
price was determined by arm's-length negotiations. The sale price
for the land and improvements was $16,100,000 (before deducting
selling costs) and was paid in cash at closing. A portion of the
net sale proceeds was utilized to retire the first mortgage debt
with an outstanding balance of $7,703,649. 

For the nine months ended September 30, 1996, the Account's
recorded equity in earnings of its unconsolidated joint ventures
(N/S Associates, Monmouth Associates and 1225 Connecticut) was
$1,583,737 compared to $1,453,176 for the nine months ended
September 30, 1995. However, after eliminating the effect of the
recognition in the first quarter of 1995 of income attributable to
certain lease termination fees received by N/S Associates, the
equity in earnings of unconsolidated joint ventures showed a
increase for the nine months of 1996 of approximately 12.9 percent
compared to the recorded equity in earnings for the nine months of
1995.  The increase is due primarily to (i) an increase in interest
earned which is now currently being paid from Monmouth Associates,
(ii) an increase in rental income at 1225 Connecticut due to the
property being 100 percent leased, and (iii) lower interest expense
from N/S Associates in 1996 as a result of prepayment charges
incurred in the first quarter of 1995 in connection with the
repayment and refinancing of the mortgage loans on Northridge and
Southridge Malls. The increase in earnings was partially offset by
lower rental income achieved at Southridge and Northridge Malls due
to lower occupancy.
<PAGE>
PAGE 10

Northridge Mall continues to be adversely affected by the
perception that it is an unsafe place to shop.  This perception has
resulted in declining sales and occupancy over a three-year period. 
Compounding the problem of declining sales are the high operating
costs for tenants at the mall due to high real estate taxes. 
Occupancy has also been affected by tenant bankruptcies during
1993, 1994 and 1995.  As of September 30, 1996, occupancy of the
mall shops was approximately  79%, including temporary tenants
under short term leases.

To counter the negative perception of Northridge Mall, N/S
Associates has implemented certain capital improvements and
operational programs to improve the shopping center's safety and
appearance, as well as instituted certain marketing efforts to
enhance its image.  Certain recent positive sales trends appear to
indicate a modest improvement; however, elimination of the negative
perception is expected to take some time.  In addition, N/S
Associates is seeking to increase occupancy at the shopping center
by aggressively marketing space for new and renewal tenants through
leasing incentives, as well as continuing to cooperate with
existing tenants who need short-term rent reductions in order to
retain occupancy of their space.  Part of the leasing strategy
includes targeting certain well-recognized retailers as a group
that would become tenants at the shopping center.  It is expected
that the draw of this group of tenants would help the shopping
center gain leasing momentum and aid in future leasing efforts.

Kohl's Department Store, a successful tenant occupying
approximately 66,000 square feet of space at Southridge Mall, 
approached N/S Associates regarding an expansion of its tenant
space and a reduction in its overall leasing costs.  During the
third quarter of 1995, N/S Associates and Kohl's entered into an
amendment of its lease.  Pursuant to the lease amendment, the term
of Kohl's lease has been extended from 2001 until 2015 and the
tenant space has been increased by approximately 19,000 square feet
to approximately 85,000 square feet, exclusive of storage space. 
Kohl's is required to pay annual base rent of $9.25 per square
foot, as well as one-half of its pro rata share for real estate
taxes and a fixed amount for common area maintenance expense. 
Kohl's is also obligated to pay as additional rent a percentage of
its gross receipts in excess of a minimum amount of annual sales to
be determined after the tenant has occupancy of the entire leased
space.  N/S Associates is responsible for paying the costs of
asbestos removal for the tenant space, which is estimated to be
approximately $1,250,000.  Kohl's is obligated to pay other costs
associated with the leased space, including tenant improvements and
lease buy-out and relocation costs, if any, of other tenants (one
of whose lease continues until 2001) that currently occupy a
portion of the expansion space.  The lease amendment also contains
an operating covenant pursuant to which Kohl's is obligated to
operate its retail store at Southridge Mall until 2005, subject to
earlier termination under certain circumstances.  Although the
lease amendment reduces Kohl's overall rent, the expansion of its
space and the extension of its lease term is expected to help
stabilize the shopping center on a long-term basis by ensuring
Kohl's continued occupancy and contribution to customer traffic.<PAGE>
PAGE 11

As of September 30, 1996, occupancy of the portion of Southridge
Mall owned by N/S Associates was approximately 91%, including
temporary tenants under short-term leases.

The Account paid asset management and mortality expense risk fees
of $796,136 and $801,204 for the nine months ended September 30,
1996 and 1995, respectively. 

For the Three Months Ended September 30, 1996 Compared to the Three
Months Ended September 30, 1995 -

Recorded net income (loss) for the nine months ended September 30,
1996 was $52,150 compared to $483,442 for the nine months ended 
September 30, 1995.

During the three months ended September 30, 1996, $579,475 of
income was attributable to the Account's recorded equity in
earnings of its unconsolidated joint ventures (N/S Associates,
Monmouth Associates, and 1225 Connecticut) compared to $488,715 for
the corresponding three months in 1995. The increase in income is
primarily due to (i) lease concession burn off at 1225 Connecticut
which is 100% leased and (ii) lower real estate taxes at Northridge
and Southridge. The increase was partially offset by lower rental
income achieved at Southridge and Northridge due to lower
occupancy. 

The Account recorded rental income of $636,645 for the three months
ended September 30, 1996 from its wholly-owned real estate
investment, West Springfield Terrace Apartments, compared to
$596,535 for the three months ended September 30, 1995.  The
increase in rental income for the three month period is a result of
increased rental rates over 1995. Expenses related to the wholly-
owned real estate investment totaled $414,279 for the three months
ended September 30, 1996 compared to $425,085 for the corresponding
period in 1995.

The Account paid total asset management and mortality expense risk
fees for the three months ended September 30, 1996 of $269,202
compared to $283,080 for the corresponding period in 1995.  
<PAGE>
PAGE 12

Liquidity and Capital Resources

For the Nine Months Ended September 30, 1996 Compared to the Nine
Months Ended September 30, 1995 -

At September 30, 1996, the Account had cash of approximately
$8,003,325 as compared to approximately $587,000 at December 31,
1995. The increase in cash for the nine months ended September 
30, 1996 as compared to December 31, 1995 is due primarily
to net proceeds received from the sale of the West Springfield
Terrace Apartments. The Account financed a portion of the contract
terminations during the quarter through additional investments made
by IDS Life Insurance Company (IDS Life).  The Account had
experienced net contract terminations in 14 consecutive quarters
with net sales (including accumulation units purchased by IDS Life)
in three of the last five  quarters.

The liquidity requirements of the Account have generally been met
by funds provided from the Account's short-term investments, cash
distributions from unconsolidated joint ventures, operating cash
flow, interest income, proceeds from sales of contracts, 
borrowings under the line of credit from IDS Life and purchases of
accumulation units by IDS Life discussed below.  The primary uses
of funds currently are expected to be for property operating
expenses, asset management and mortality and expense risk fees and
payments for contract terminations.

In March 1994, the Account obtained a revolving line of credit for
up to $10 million from IDS Life to pay for contract surrenders and
other obligations under the contracts.  In June 1995, the revolving
credit loan balance of $9,500,000 and accrued interest were repaid
as discussed below.

Effective May 1, 1995, new contract sales of the Account were
discontinued.  Additional purchase payments continue to be accepted
for existing contracts in amounts specified in the Account's
prospectus, whether by means of the previously established bank
authorizations or otherwise.  Existing contracts also continue to
be serviced and surrender requests will be honored.  

IDS Life continues to purchase accumulation units in order to
maintain the Account and its liquidity.  IDS Life makes these
payments so that no contract holder is disadvantaged because sales
of new contracts have been discontinued.  The initial payments for
accumulation units that IDS Life made into the Account were used to
pay off the amount that the Account had borrowed under its
revolving line of credit.  IDS Life expects to continue to make
additional payments into the Account for accumulation units as
needed in order to fund all of the Account's obligations under the
contracts such as paying death benefits and contract terminations. 
As of September 30, 1996, IDS Life had purchased approximately
24,767,643 accumulation units.

By purchasing accumulation units, IDS Life has an ownership
interest in the Account.  Since IDS Life does not purchase a
contract, it is not subject to surrender charges.  However, IDS
Life, as holder of accumulation units, participates in the increase
or decrease in the value of the Account's investments just as other
owners of accumulation units do.  IDS Life may realize a gain or
loss on its accumulation units when redeemed.
<PAGE>
PAGE 12
IDS Life currently expects to hold the accumulation units it
purchases until the surrender of all outstanding contracts or until
the Account's liquidity improves (through, for example, one or more
sales of real estate related investments) thereby permitting the
Account to satisfy its anticipated contract obligations.  Because
IDS Life may purchase a significant amount of accumulation units,
IDS Life may be subject to certain conflicts of interest it would
not otherwise have if it had not purchased such accumulation units,
including, among other things, a conflict in approving periodic
valuations of real estate investments made by the Investment
Adviser.

The Account does not intend to acquire additional real estate
related investments and intends to liquidate the real estate
related investments that it currently holds when it becomes
advantageous or necessary to do so.  To the extent funds of the
Account are not used to pay obligations of the Account, including
those under existing contracts, or the redemption of accumulation
units purchased by IDS Life, such funds will be invested in short-
term debt instruments and possibly intermediate-term bonds with
maturities of up to five years.

Through September 30, 1996, Monmouth Associates had funded
approximately $25,125,000 of the renovation loan for Monmouth Mall.
Fundings of principal on the loan have been made from cash reserves
held by Monmouth Associates, cash flow from interest and ground
rent payments received from the borrower/lessee and capital 
contributions made to Monmouth Associates by its partners pro rata
based upon their respective interests.  The aggregate amount of
capital contributions to finance the loan is approximately
$9,830,000.  The Account's share of these capital contributions is
approximately $685,000.  The aggregate amount of the renovation
loan, including accrued and deferred interest of approximately
$1,300,000, is currently expected to be approximately $27,800,000. 
Remaining fundings for the renovation loan are expected to be made
from cash flow and funds currently held by Monmouth Associates. 
Monmouth Associates may also be required to make certain additional
loans to pay a portion of the costs of certain tenant improvements
or other ordinary capital expenditures.  In addition, Monmouth
Associates may provide additional financing to the borrower/lessee
in order to pay costs to be incurred in connection with the
replacement or expansion of a department store tenant at Monmouth
Mall.  However, it is not currently expected that this would occur
during 1996.

The renovation is nearing completion with tenant improvement work
for one of the larger tenants and retainage work remaining. This
large tenant opened in late July. The occupancy of mall shops and
outparcel space at the shopping center as of September 30, 1996 was
approximately 72 percent.  However, the mall shops and outparcel
space are approximately 85 percent leased, including a lease for a
tenant whose term will commence after renovation of its tenant
space permits occupancy.  Leasing and occupancy at the shopping
center have been adversely affected by tenant bankruptcies
occurring in 1995.
<PAGE>
PAGE 13

In February 1995, N/S Associates obtained a new mortgage loan
secured by Southridge Mall in the principal amount of $35,000,000. 
The new mortgage loan has a term of seven years, bears interest at
8.35 percent per annum and requires monthly payments of interest
only prior to maturity.  A portion of the proceeds from the new
mortgage loan was used to repay the two mortgage loans secured by
Northridge Mall as well as the mortgage loan previously secured by
Southridge Mall.  Remaining net proceeds from the refinancing have
been and will be used to pay tenant improvement and other capital
costs at Northridge and Southridge Malls.

N/S Associates currently expects that it will incur approximately
$2,141,000 in 1996 for tenant improvement, asbestos removal and
other capital items at Northridge and Southridge Malls. The
decrease from last quarter is due primarily to unmet leasing which
resulted in lower tenant improvement costs. Actual amounts expended
in 1996 may vary depending on a number of factors, including actual
leasing activity, results of property operations, liquidity
considerations and market conditions over the course of the year. 
N/S Associates undertakes asbestos removal from time to time at
portions of the Northridge and Southridge Malls as tenant spaces
are vacated and prior to occupancy by new tenants.  The cost
of tenant improvements, asbestos removal and other capital items
generally will be provided out of cash flows from the properties.
In this regard, N/S Associates reduced the amount of distributions
to its partners in order to retain funds to pay capital items
expected to be incurred in 1996.  N/S Associates expended
approximately $1,967,000 for tenant improvements, asbestos removal
and other capital projects in 1995.

At September 30, 1996, real property investments (through two
unconsolidated joint ventures, N/S Associates and 1225
Connecticut,) mortgage loan and land sale-leaseback investments
(through an unconsolidated joint venture, Monmouth Associates, and
a participation in the loan for Riverpoint Center) and short-term
investments represented 56 percent, 33 percent and 11 percent
of total assets, respectively.  At September 30, 1995, real
property investments, mortgage loan and land sale-leaseback
investments and short-term investments represented 71 percent, 28
percent and 1 percent of total assets, respectively.<PAGE>
PAGE 14
                      PART II.  OTHER INFORMATION
                      ---------------------------

Item 1. LEGAL PROCEEDINGS

        There are no material current or pending legal proceedings  
        which the Registrant is a party to, or to which the         
        Registrant's assets are subject.

Item 2. CHANGES IN SECURITIES

        Not applicable

Item 3. DEFAULTS UPON SENIOR SECURITIES

        Not applicable

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

        Not applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

        (A) Exhibits

            4.1 Form of Deferred Variable Annuity Contract is       
                hereby incorporated herein by reference to Exhibit 
                4 to the Account's Form S-1 (as amended), File
                Number 33-13375, filed July 17, 1987.

            4.2 Copy of mortgage loan documents relating to West
                Springfield Terrace Apartments is hereby            
                incorporated herein by reference to Exhibit 4.2 to  
                the Account's Form S-1 (as amended), File Number    
                33-13375, filed April 12, 1990.

            4.3 Copy of the line of credit agreement, dated 
                March 30, 1994 between IDS Life and the Account     
                (including a copy of the executed promissory note,  
                dated March 30, 1994) is hereby incorporated by     
                reference to Exhibit 4.3 to the Account's Form 10-K 
                Report for the year ended December 31, 1993, File   
                Number 33-13375, filed April 5, 1994.

           10.1 Copy of Investment Advisory Agreement between IDS   
                Life and JMB Annuity Advisors is hereby             
                incorporated herein by reference to Exhibit 10.1 to 
                the Account's Form S-1 (as amended), File Number    
                33-13375, filed April 29, 1988.

           10.2 Copy of N/S Associates Joint Venture Agreement      
                together with certain documents relating to the     
                purchase of an interest in Northridge Mall is       
                hereby incorporated herein by reference to Exhibit  
                10.2 to the Account's Form S-1 (as amended), File   
                Number 33-13375, filed April 29, 1988.

<PAGE>
PAGE 15
         10.2.1 Copy of Second Amended and Restated Articles of     
                Partnership of N/S Associates hereby incorporated   
                herein by reference to Exhibit 10.2.1 to the        
                Account's Form S-1 (as amended), File Number
                33-13375, filed April 20, 1989.

           10.3 Copy of N/S Associates Joint Venture Agreement      
                together with certain documents relating to the
                purchase of an interest in Southridge Mall is       
                hereby incorporated herein by reference to
                Exhibit 10.3 to Form S-1 (as amended), File
                Number 33-13375, filed April 29, 1988.

           10.4 Copy of Commitment Letter relating to the funding 
                of a participating mortgage loan secured by         
                Riverpoint Center is hereby incorporated herein by
                reference to Exhibit 10.4 to Form S-1 (as amended),
                File Number 33-13375, filed October 11, 1988.

           10.5 Copy of Amended and Restated Articles of            
                Partnership of Monmouth Associates are hereby       
                incorporated herein by reference to Exhibit 10.5 to 
                the Account's Form S-1 (as amended), File Number
                33-13375, filed April 12, 1990.

           10.6 Copy of Agreement together with certain other       
                documents relating to the purchase of West          
                Springfield Terrace Apartments is hereby            
                incorporated herein by reference to Exhibit 10.6 to 
                Form S-1 (as amended), File Number 33-13375, filed
                October 16, 1989.

           10.7 Copy of Agreement together with certain documents   
                relating to the purchase of an interest in 1225     
                Connecticut Avenue is hereby incorporated herein by
                reference to the Account's Form S-1 (as amended),   
                File Number 33-13375, filed June 29, 1990.

           10.8 Copy of Purchase Agreement for the sale of the
                West Springfield Terrace Apartments is filed
                herewith.

           27.1 Financial Data Schedule of the Account for the      
                period ended September 30, 1996 is filed herewith.

        (B) Report on Form 8-K

            No reports on Form 8-K were required to be filed by the 
            Registrant for the three months ended September 30, 
            1996.

PAGE 16
                           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, thereunto duly authorized.


                         IDS LIFE ACCOUNT RE
                                 of
                      IDS LIFE INSURANCE COMPANY
                                                
                             (Registrant)




Date:  November 14, 1996                       /S/ Melinda Urion   
                                           Melinda S. Urion
                                           Executive Vice President
                                                and Controller

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