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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 September 30, 2007.
  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 Statements
    
    3Condensed Balance Sheets at September 30, 2007 (Unaudited) and December 31, 2006
    
    3Condensed Statements of Income for the three and nine months ended September 30, 2007 and 2006 (Unaudited)
    
    4Condensed Statements of Cash Flows for the nine months ended September 30, 2007 and 2006 (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
    
    11PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    12SIGNATURE
    
    13EXHIBIT 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
 September 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    126,001
    
    
    $
    144,397Receivable from Del Taco LLC
    
    
    36,047
    
    
    
    36,536Deposits
    
    
    551
    
    
    
    615Total current assets
    
    
    162,599
    
    
    
    181,548PROPERTY 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
    
    
    1,457,219
    
    
    
    1,415,7681,554,130
    
    
    
    1,595,581$
    1,716,729
    
    
    $
    1,777,129LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    11,972
    
    
    $
    34,885Accounts payable
    
    
    11,649
    
    
    
    10,571Total current liabilities
    
    
    23,621
    
    
    
    45,456OBLIGATION TO GENERAL PARTNER
    
    
    137,953
    
    
    
    137,953PARTNERS EQUITY:Limited partners; 165,375 units outstanding at September 30, 2007
and December 31, 2006
    
    
    1,570,737
    
    
    
    1,608,916General partner-Del Taco LLC
    
    
    (15,582
    )
    
    
    (15,196
    )1,555,155
    
    
    
    1,593,720$
    1,716,729
    
    
    $
    1,777,129
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DEL TACO INCOME PROPERTIES IV
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006RENTAL REVENUES
    
    $
    112,025
    
    
    $
    113,739
    
    
    $
    326,557
    
    
    $
    339,465EXPENSES:General and administrative
    
    
    10,331
    
    
    
    8,222
    
    
    
    56,184
    
    
    
    53,711Depreciation
    
    
    13,817
    
    
    
    13,817
    
    
    
    41,451
    
    
    
    41,45124,148
    
    
    
    22,039
    
    
    
    97,635
    
    
    
    95,162Operating income
    
    
    87,877
    
    
    
    91,700
    
    
    
    228,922
    
    
    
    244,303OTHER INCOME:Interest
    
    
    558
    
    
    
    680
    
    
    
    1,585
    
    
    
    1,737Other
    
    
    175
    
    
    
    225
    
    
    
    300
    
    
    
    525Net income
    
    $
    88,610
    
    
    $
    92,605
    
    
    $
    230,807
    
    
    $
    246,565Net income per limited
partnership unit (note 2)
    
    $
    0.53
    
    
    $
    0.55
    
    
    $
    1.38
    
    
    $
    1.48Number 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)
 Nine Months EndedSeptember 30,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    230,807
    
    
    $
    246,565Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    41,451
    
    
    
    41,451Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    489
    
    
    
    2,166Deposits
    
    
    64
    
    
    
    (279
    )Payable to limited partners
    
    
    (22,913
    )
    
    
    (4,340
    )Accounts payable
    
    
    1,078
    
    
    
    (36
    )Net cash provided by operating activities
    
    
    250,976
    
    
    
    285,527CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (269,372
    )
    
    
    (291,964
    )Net decrease in cash
    
    
    (18,396
    )
    
    
    (6,437
    )Beginning cash balance
    
    
    144,397
    
    
    
    150,403Ending cash balance
    
    $
    126,001
    
    
    $
    143,966
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DEL TACO INCOME PROPERTIES IV
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007
 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 NINE MONTHS ENDED SEPTEMBER 30, 2007
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES  continued
   NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  -7-




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DEL TACO INCOME PROPERTIES IV
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007
 UNAUDITED
 NOTE 6
 PAYABLE TO LIMITED PARTNERS
  NOTE 7
 CONCENTRATION OF RISK
  NOTE 8
 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
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Orangethorpe Ave., Placentia, CA
    
    $
    47,529
    
    
    $
    46,057
    
    
    $
    137,650
    
    
    $
    134,344Lakeshore Drive, Lake Elsinore, CA
    
    
    41,034
    
    
    
    44,188
    
    
    
    120,277
    
    
    
    135,364Highland Ave., San Bernardino, CA
    
    
    23,462
    
    
    
    23,494
    
    
    
    68,630
    
    
    
    69,757Total
    
    $
    112,025
    
    
    $
    113,739
    
    
    $
    326,557
    
    
    $
    339,465
  -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
    
    Nine Months EndedSeptember 30,
    
    September 30,2007
    
    2006
    
    2007
    
    2006Accounting fees
    
    
    52.13
    %
    
    
    58.92
    %
    
    
    76.46
    %
    
    
    74.82
    %Distribution of information
to limited partners
    
    
    47.87
    %
    
    
    41.08
    %
    
    
    23.54
    %
    
    
    25.18
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  Critical Accounting Policies and Estimates
  -10-




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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
       -11-




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PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 31.1
    
    Shirlene Lopez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.
 -12-




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SIGNATURE
  DEL TACO INCOME PROPERTIES IV(a California limited partnership)RegistrantDel Taco LLCGeneral PartnerDate:
November 14, 2007
    
    /s/ Steven L. BrakeSteven L. BrakeTreasurer
 -13-




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Exhibits
    
    Description31.1
    
    Shirlene Lopez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
 -14-