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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, 2008.
  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, a non-accelerated filer, or a smaller
    reporting company. See the definitions of large
    accelerated filer, accelerated filer and
    smaller reporting company in
    Rule 12b-2
    of the Exchange Act. (Check one):
  Large
    accelerated
    filer o
    Accelerated
    filer o
    Non-accelerated
    filer þ
    Smaller reporting
    company o (Do
    not check if a smaller reporting company)
  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 September 30, 2008 (Unaudited) and
December 31, 2007
    
    3Condensed Statements of Income for the three and nine months ended
September 30, 2008 and 2007 (Unaudited)
    
    4Condensed Statements of Cash Flows for the nine months ended
September 30, 2008 and 2007 (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 4T. Controls and Procedures
    
    12PART II. OTHER INFORMATIONItem 6. Exhibits
    
    13SIGNATURE
    
    14EX-31.1EX-31.2EX-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 31,2008
    
    
    2007(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    120,371
    
    
    $
    115,922Receivable from Del Taco LLC
    
    
    36,643
    
    
    
    35,715Deposits
    
    
    637
    
    
    
    551Total current assets
    
    
    157,651
    
    
    
    152,188PROPERTY 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
    
    
    1,512,487
    
    
    
    1,471,0361,498,862
    
    
    
    1,540,313$
    1,656,513
    
    
    $
    1,692,501LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    14,662
    
    
    $
    12,502Accounts payable
    
    
    10,612
    
    
    
    10,819Total
current liabilities
    
    
    25,274
    
    
    
    23,321OBLIGATION TO GENERAL PARTNER
    
    
    137,953
    
    
    
    137,953PARTNERS EQUITY:Limited partners; 165,375 units outstanding at September 30, 2008
and December 31, 2007
    
    
    1,509,486
    
    
    
    1,547,048General partner-Del Taco LLC
    
    
    (16,200
    )
    
    
    (15,821
    )1,493,286
    
    
    
    1,531,227$
    1,656,513
    
    
    $
    1,692,501
  -3-




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DEL TACO INCOME PROPERTIES IV
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007RENTAL REVENUES
    
    $
    113,926
    
    
    $
    112,025
    
    
    $
    331,635
    
    
    $
    326,557EXPENSES:General and administrative
    
    
    8,484
    
    
    
    10,331
    
    
    
    55,160
    
    
    
    56,184Depreciation
    
    
    13,817
    
    
    
    13,817
    
    
    
    41,451
    
    
    
    41,45122,301
    
    
    
    24,148
    
    
    
    96,611
    
    
    
    97,635Operating income
    
    
    91,625
    
    
    
    87,877
    
    
    
    235,024
    
    
    
    228,922OTHER INCOME:Interest
    
    
    135
    
    
    
    558
    
    
    
    508
    
    
    
    1,585Other
    
    
    75
    
    
    
    175
    
    
    
    1,000
    
    
    
    300Net income
    
    $
    91,835
    
    
    $
    88,610
    
    
    $
    236,532
    
    
    $
    230,807Net income
per limited
partnership unit (note2)
    
    $
    0.55
    
    
    $
    0.53
    
    
    $
    1.42
    
    
    $
    1.38Number 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 30,2008
    
    
    2007CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    236,532
    
    
    $
    230,807Adjustments 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
    
    
    (928
    )
    
    
    489Deposits
    
    
    (86
    )
    
    
    64Payable to
limited partners
    
    
    2,160
    
    
    
    (22,913
    )Accounts payable
    
    
    (207
    )
    
    
    1,078Net cash
provided by operating activities
    
    
    278,922
    
    
    
    250,976CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (274,473
    )
    
    
    (269,372
    )Net increase (decrease) in cash
    
    
    4,449
    
    
    
    (18,396
    )Beginning cash balance
    
    
    115,922
    
    
    
    144,397Ending cash balance
    
    $
    120,371
    
    
    $
    126,001
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DEL TACO INCOME PROPERTIES IV
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008
 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, 2008
 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, 2008
 UNAUDITED
 NOTE 6  PAYABLE TO LIMITED PARTNERS
  NOTE 7  CONCENTRATION OF RISK
   -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 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Orangethorpe Ave., Placentia, CA
    
    $
    48,708
    
    
    $
    47,529
    
    
    $
    142,825
    
    
    $
    137,650Lakeshore Drive, Lake Elsinore, CA
    
    
    39,919
    
    
    
    41,034
    
    
    
    115,917
    
    
    
    120,277Highland Ave., San Bernardino, CA
    
    
    25,299
    
    
    
    23,462
    
    
    
    72,893
    
    
    
    68,630Total
    
    $
    113,926
    
    
    $
    112,025
    
    
    $
    331,635
    
    
    $
    326,557
  -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 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Accounting fees
    
    
    64.91
    %
    
    
    52.13
    %
    
    
    78.16
    %
    
    
    76.46
    %Distribution of information
to limited partners
    
    
    35.09
    %
    
    
    47.87
    %
    
    
    21.84
    %
    
    
    23.54
    %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
  Revenue Recognition:
 Property and Equipment:
  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk.
  -11-




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Item 4T.
    
    Controls and Procedures
 (a)
    
    Evaluation of disclosure controls and procedures:
 As of the end of the period covered by this quarterly report, we carried out an
evaluation, under the supervision and with the participation of the Companys management,
including the Companys Chief Executive Officer and Treasurer, of the effectiveness of the design and
operation of the Companys disclosure controls and procedures. Based upon that
evaluation, the Chief Executive Officer and Treasurer concluded that the Companys disclosure controls
and procedures are effective in timely alerting them to material information relating to
the Company required to be included in the Companys periodic Securities and Exchange
Commission filings.
 (b)
    
    Changes in internal controls:
 There were no significant changes in the Companys internal controls over financial
reporting that occurred during our most recent fiscal quarter that materially affected,
or is reasonably likely to materially affect, our internal control over financial
reporting.
 (c)
    
    Asset-backed issuers:
 Not applicable.
 -12-




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PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 31.1
    
    Nick Shepherd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-




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SIGNATURE
  DEL TACO INCOME PROPERTIES IV(a California limited partnership)RegistrantDel Taco LLCGeneral PartnerDate: November 14, 2008
    
    /s/ Steven L. BrakeSteven L. BrakeTreasurer
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EXHIBIT INDEX
 Exhibit
    
    Description31.1
    
    Nick Shepherd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
 -15-