UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                     --------------------------------------

                                    FORM 10-K
(Mark  One)
      ANNUAL  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 [NO FEE REQUIRED]

  X   For the fiscal year ended                December 31, 2000
                                ------------------------------------------------

                                       OR

      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

      For the transition period from                      to
                                    --------------------      ------------------

                         Commission File number 0-11987
                                               ---------

                       Krupp Realty Limited Partnership-IV
--------------------------------------------------------------------------------

    Massachusetts                                           04-2772783
-------------------------------                ---------------------------------
(State or other jurisdiction of                (IRS employer identification no.)
incorporation or organization

One Beacon Street, Boston, Massachusetts                    02108
----------------------------------------       ---------------------------------
(Address of principal executive                           (Zip code)
offices)

(Registrant's telephone number, including area code)         (617) 523-7722
                                                    ----------------------------

Securities registered pursuant to Section 12(b) of the Act:   None

Securities registered pursuant to Section 12(g) of the Act:   Units of Investor
                                                               Limited Partner
                                                               Interest

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  preceeding 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         X                No
                    ----------------            -----------------
Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]

Aggregate market value of voting securities held by non-affiliates:  Not
                                                                     Applicable.

Documents incorporated by reference: Part IV, Item 14.

The exhibit index is located on pages 12-14.

The total number of pages in this document is 33.



<PAGE>
                                     PART I

     This Form 10-K contains  forward-looking  statements  within the meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange  Act of  1934.  Actual  results  could  differ  materially  from  those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

ITEM 1. BUSINESS

     Krupp Realty Limited  Partnership-IV  ("KRLP-IV") was formed on December 1,
1982 by filing a  Certificate  of Limited  Partnership  in The  Commonwealth  of
Massachusetts. The Krupp Corporation, a Massachusetts corporation, and The Krupp
Company Limited  Partnership-II,  a Massachusetts  limited partnership,  are the
General Partners of KRLP-IV. KRLP-IV has also issued all of the Original Limited
Partner  Interests to The Krupp Company Limited  Partnership-II.  On January 18,
1983,  KRLP-IV  commenced the offering of up to 30,000 units of Investor Limited
Partner  Interests  (the  "Units").  As of  March  31,  1983,  KRLP-IV  received
subscriptions for all 30,000 Units at $1,000 per Unit and therefore,  the public
offering was  successfully  completed on that date.  For details,  see Note A to
Consolidated  Financial  Statements  included  in  Item 8  (Appendix  A) of this
report.

     The  primary  business of KRLP-IV is to  acquire,  operate  and  ultimately
dispose of real estate.  KRLP-IV initially  acquired six multi-family  apartment
complexes (Copper Creek, Walden Pond (formerly Westbridge),  Indian Run, Fenland
Field, Pavillion and Tilbury Woods Apartments), a retail center (Lakeview Plaza)
and invested in a joint venture in Lakeview Tower (the "Joint  Venture") with an
affiliated limited  partnership.  KRLP-IV considers itself to be engaged in only
one industry segment, investment in real estate.

     KRLP-IV sold Lakeview Plaza and Tilbury Woods  Apartments in 1990 and 1991,
respectively.  Additionally, KRLP-IV received a terminating capital distribution
from the Joint Venture with proceeds from the sale of Lakeview Tower in 1992. In
1990,  the  General  Partners  formed  three  limited  partnerships:   Pavillion
Partners, Ltd., Copper Creek Partners, Ltd. and Westbridge Partners, Ltd. At the
same time, the General Partners transferred ownership of Pavillion Apartments to
Pavillion  Partners,  Ltd.,  Copper Creek  Apartments to Copper Creek  Partners,
Ltd., and Walden Pond Apartments to Westbridge Partners,  Ltd. in exchange for a
99%  Limited  Partner  Interest in the new  entities.  Westcop  Corporation,  an
affiliate  of  KRLP-IV,  contributed  a total of  $11,216 in  exchange  for a 1%
General Partner Interest in the new entities. KRLP-IV, Pavillion Partners, Ltd.,
Copper Creek  Partners,  Ltd. and Westbridge  Partners,  Ltd., are  collectively
known as Krupp Realty  Limited  Partnership-IV  and  Subsidiaries  (collectively
referred  to  herein  as  the  "Partnership").  The  Partnership  endeavored  to
renegotiate the debt on these properties, the negotiations were unsuccessful and
these partnerships  subsequently  petitioned for relief under federal bankruptcy
laws.

     On March 31, 1998, the Partnership  sold Indian Run Apartments,  a 256-unit
multi-family  apartment complex,  located in Abilene,  Texas, to an unaffiliated
third party (see Note E to Consolidated Financial Statements, included in Item 8
(Appendix A) of this report).

     The  Partnership's  real estate  investments  are subject to some  seasonal
fluctuations   resulting  from  changes  in  utility  consumption  and  seasonal
maintenance  expenditures.  However,  the future  performance of the Partnership
will depend upon factors which cannot be predicted. Such factors include general
economic  and real estate  market  conditions,  both on a national  basis and in
those areas where the  Partnership's  real estate  investments are located,  the
availability  and cost of  borrowed  funds,  real  estate tax  rates,  operating
expenses,  energy costs, government regulations and federal and state income tax
laws. The requirements for compliance with federal,  state and local regulations
to date have not had an adverse effect on the Partnership's  operations,  and no
adverse effect therefrom is anticipated in the future.


     The Partnership's investments in real estate are also subject to such risks
as (i) competition from existing and future projects held by other owners in the
locations of the  Partnership's  properties,  (ii) possible  reduction in rental
income due to an inability to maintain high  occupancy  levels,  (iii)  possible
adverse  changes in mortgage  interest rates,  (iv) possible  adverse changes in
general  economic  and  local  conditions,  such as  competitive  over-building,
increases in  unemployment,  or adverse  changes in real estate zoning laws, (v)
possible future adoption of rent control  legislation which would not permit the
full  amount of  increased  costs to be passed on to tenants in the form of rent
increases,  and (vi) other  circumstances  over which the  Partnership  may have
little or no control.


                                      -2-

<PAGE>
     As of December 31, 2000, the Partnership  did not employ any personnel.

ITEM 2. PROPERTIES

     As of  December  31,  2000,  the  Partnership  had an  aggregate  of  1,000
apartment units.

     A summary of the  Partnership's  multi-family  real estate  investments  is
presented  below.  Schedule  III  included in Item 8 (Appendix A) to this report
contains additional detailed information with respect to individual properties.

<TABLE>
<CAPTION>
                                            Average Occupancy For the Year Ended
                                                         December 31,
                            Year of   Total ------------------------------------
         Description      Acquisition Units   2000   1999   1998   1997    1996
------------------------- ----------- ----- ------- ------ ------ ------ -------
<S>                          <C>      <C>     <C>     <C>    <C>   <C>      <C>
Fenland Field Apartments
Columbia, Maryland           1983       234   95%     97%    99%   100%     98%

Pavillion Apartments
Garland, Texas               1983       350   94%     95%    96%    95%     95%

Walden Pond Apartments
Houston, Texas               1983       416   89%     94%    97%    98%     95%
                                      -----

                                      1,000  Units
                                      =====
</TABLE>

ITEM 3. LEGAL PROCEEDINGS

     There are no material pending legal proceedings to which the Partnership is
a party or to which any of its property is the subject.


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

     None.









                                      -3-
<PAGE>
                                     PART II

ITEM 5.  MARKET  FOR THE  REGISTRANT'S  COMMON  EQUITY AND  RELATED  STOCKHOLDER
         MATTERS

     The  transfer  of Units of Limited  Partner  Interest is subject to certain
limitations  contained in the Partnership  Agreement.  There is no public market
for the  Units  and it is not  anticipated  that any  such  public  market  will
develop.

     The  number of  Investor  Limited  Partners  as of  December  31,  2000 was
approximately 1,634.

     The Partnership made the following distributions to its Partners during the
years ended December 31, 2000 and 1999:

<TABLE>
<CAPTION>
                                              Year Ended December 31,
                                  ----------------------------------------------
                                           2000                     1999
                                  -----------------------   --------------------
                                     Amount      Per Unit     Amount    Per Unit
                                  -------------  --------   ----------  --------
<S>                               <C>            <C>        <C>         <C>
Limited Partners:

     Investor Limited Partners
       (30,000 Units Outstanding)   $740,589      $24.69     $740,590    $24.69

     Original Limited Partner         31,182                   31,183

General Partners                       7,796                    7,796
                                  -----------               ----------

                                    $779,567                 $779,569
                                  ===========               ==========
</TABLE>


     Due  to   improvements   in  the  operations  of  the  properties  and  the
availability  of cash flow, the General  Partners  reinstated  distributions  in
August,  1994,  at a rate of $4.67  per  Unit.  In 1995  and  1996,  the  annual
distribution  rates were increased to $28.00 and $37.33 per Unit,  respectively.
These semiannual  distributions  continued in 1997 and the first half of 1998 at
an  annualized  rate of $37.33  per Unit.  As a result of the sale of Indian Run
Apartments, the General Partners reduced the distribution rate to $9.33 per Unit
for the  distribution  paid in  August,  1998.  However,  the  General  Partners
increased  the  distribution   rate  to  $24.69  per  Unit  beginning  with  the
distribution payable in February, 1999 due to improved operations.

     The Partnership made special capital distributions of $67.12 and $43.33 per
Unit  during  the  second  quarter  of 1998  and the  second  quarter  of  1996,
respectively,  with the funds received from the sale of Indian Run Apartments in
1998 and the sale of Lakeview Tower Apartments in 1992,  respectively.  Pursuant
to the Partnership Agreement,  distributions from capital transactions,  such as
the sale of a property, are allocated 99% to Investor Limited Partners and 1% to
the  General  Partners.  For  details,  see  Note  H to  Consolidated  Financial
Statements included in Item 8 (Appendix A) of this report.




                                      -4-
<PAGE>
ITEM 6. SELECTED FINANCIAL DATA

     The following table sets forth selected financial information regarding the
Partnership's  financial position and operating results. This information should
be read in conjunction  with  Management's  Discussion and Analysis of Financial
Condition  and  Results  of  Operations   and  the  Financial   Statements   and
Supplementary  Data,  which  are  included  in  Items  7 and 8 of  this  report,
respectively.
<TABLE>
<CAPTION>

                         2000        1999        1998        1997        1996
                     ----------- ----------- ----------- ----------- -----------

<S>                  <C>         <C>         <C>         <C>         <C>
Total revenue        $ 7,290,609 $ 7,052,216 $ 7,169,243 $ 7,721,285 $7,307,643

Income (loss) before
 gain on sale of
 property and extra
 ordinary loss           333,985     464,369     574,090     157,116   (156,880)

Gain on sale of
 property                      -           -   2,960,743           -          -

Extraordinary loss             -           -    (389,523)          -          -

Net income (loss)        333,985     464,369   3,145,310     157,116   (156,880)

Net income (loss)
 allocated to:

     Investor Limited
       Partners          317,286     441,150   3,090,894     149,260   (149,306)
         Per Unit          10.58       14.71      103.03        4.98      (4.97)

     Original Limited
       Partner            13,359      18,575      22,964       6,285     (6,275)

     General Partners      3,340       4,644      31,452       1,571     (1,569)

Total assets at
   December 31,       12,017,592  12,588,568  13,245,952  16,718,318 17,605,712

Long-term obligations
at December 31,        9,363,967  12,496,331  10,552,809  19,544,471 19,429,196

Distributions:

     Investor Limited
       Partners          740,589     740,590   2,853,592   1,119,903  2,419,804
         Per Unit          24.69       24.69       95.12       37.33      80.66

     Original Limited
       Partner            31,182      31,183      35,369      47,158     47,158

     General Partners      7,796       7,796      29,182      11,790     24,920
</TABLE>


Operating  results for the periods  presented are not comparable due to the sale
of Indian Run Apartments on March 31, 1998.

The per Unit  distributions  for the years ended December 31, 2000,  1999, 1998,
1997 and 1996 were $24.69, $24.69, $95.12, $37.33 and $80.66,  respectively,  of
which $0, $0, $67.12, $0 and $43.33 represented a return of capital.

Prior  performance of the  Partnership is not  necessarily  indicative of future
operations.



                                      -5-
<PAGE>


ITEM 7. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     This  Management's  Discussion  and  Analysis of  Financial  Condition  and
Results  of  Operations  contains  forward-looking  statements  including  those
concerning Management's  expectations regarding the future financial performance
and future events. These forward-looking statements involve significant risk and
uncertainties,  including  those  described  herein.  Actual  results may differ
materially from those anticipated by such forward-looking statements.

Liquidity and Capital Resources

     The  Partnership's  ability to generate  cash adequate to meet its needs is
dependent   primarily   upon  the   operations  of  its  remaining  real  estate
investments.  Such ability would also be impacted by the future  availability of
bank borrowings,  and upon the future  refinancing and sale of the Partnership's
real  estate  investments.  These  sources  of  liquidity  will  be  used by the
Partnership for payment of expenses related to real estate  operations,  capital
improvements,  debt service and other expenses. Cash Flow, if any, as calculated
under Section 8.2(a) of the  Partnership  Agreement,  will then be available for
distribution to the Partners.

     Over the past several years,  real estate markets in general have improved,
and the General Partners feel it is an opportune time to formulate a liquidation
strategy for the Partnership.  As such, the General Partners intend to begin the
process  of  more  thoroughly   assessing  the  property  sales  market  in  the
Partnership's  market areas and  developing a  disposition  strategy  which will
yield  the  highest  value  to  investors   through  an  efficient  and  orderly
liquidation  of the  Partnership.  In keeping  with this  strategy,  the General
Partners intend to refinance or extend mortgage loans which mature in the next 6
months with financing that leaves flexibility for the property sales.

     Assuming  market  conditions do not change,  the assessment of the property
sales  market is  consistent  with the General  Partners'  expectations,  and an
acceptable  disposition plan can be implemented,  the General Partners expect to
complete the liquidation process over the next 12 months.  However, there can be
no assurance that such  liquidation  will occur, or what amounts may be realized
by the Partnership.

     On November 9, 2000, the General Partners signed an agreement extending the
mortgage  note payable on Walden Pond  Apartments  until  November 1, 2002.  The
Partnership  paid an extension fee of $29,555 for this privilege.  The extension
terms reduced the interest rate from prime + 0.5% to prime - 0.5%.

     As of  December  31,  2000,  the  General  Partners  had signed  agreements
extending  the mortgage  note  payable on Fenland  Field  Apartments,  under the
original  terms,  until June 1, 2002. The  Partnership  paid an extension fee of
$5,000 for this privilege.

     The General Partners are currently negotiating an extension of the mortgage
note payable on Pavillion  Apartments.  It is anticipated that the mortgage will
be extended under terms that are substantially similar to the current terms.

     The Partnership funded  approximately  $992,000 of capital  improvements at
the properties in 2000 for appliances, carpeting and other interior and exterior
building  improvements.  In an  effort  to  improve  the  marketability  of  the
Partnerships'  properties,   the  Partnership  expects  to  spend  approximately
$580,000 for  improvements  in 2001  consisting of internal  enhancements  which
include the painting and  replacement  of cabinets at the  properties as well as
exterior improvements, including entrance rehab, replacement of sewer pipes, new
signage,  and window  replacement at Fenland Field  Apartments.  The Partnership
expects to fund these improvements from established reserves and operations. The
General  Partners may need to suspend  distributions  and/or  borrow  additional
funds to pay for future capital expenditures.

     On March 31,  1998,  the  Partnership  sold  Indian  Run  Apartments  to an
unaffiliated third party. The Partnership received $5,850,000, less repayment of
the  mortgage  note  payable and  interest of  $2,658,664  and closing  costs of
$138,518.  For  further  details,  see  Note  E to  the  Consolidated  Financial
Statements included in Item 8 (Appendix A) of this report.

                                      -6-
<PAGE>

     Due to  improvements  in the  operations of the properties and reduced debt
service, the Partnership had sufficient cash flow in 1995 to increase the annual
distribution rate to $28.00 per Unit and to $37.33 per Unit in 1996. As a result
of the  sale  of  Indian  Run  Apartments,  the  General  Partners  reduced  the
distribution  rate to $9.33 per Unit for the  distribution  paid in August 1998.
However, the General Partners increased the distribution rate to $24.69 per Unit
beginning  with the  distribution  payable  in  February  1999  due to  improved
operations during the year.

     The Partnership made special distributions of $2,034,000,  $67.12 per Unit,
and  $1,313,031,  $43.33 per Unit,  during  the  second  quarter of 1998 and the
second quarter of 1996,  respectively,  based on the remaining proceeds from the
sale of Indian Run  Apartments  in 1998 and Lakeview  Tower  Apartments in 1992,
respectively.  Distributions of net cash proceeds from capital  transactions are
allocated in accordance with the  Partnership  Agreement (as described in Note H
to the Consolidated Financial Statements included in Item 8 (Appendix A) of this
report).

     The General  Partners,  on an ongoing basis,  assess the current and future
liquidity  needs in  determining  the levels of  working  capital  reserves  the
Partnership  should  maintain.   Adjustments  to  distributions  are  made  when
appropriate to reflect such assessments.


     On July 31, 1997, the General Partners obtained an additional $900,000 note
for Walden Pond Apartments.  The note bears interest at a rate of 9.5% per annum
and matured on February 28, 1999, simultaneous with the first mortgage note. The
proceeds  from the note  were  placed in  escrow  and were used to fund  capital
improvements at the property.  The Partnership  paid closing costs of $33,082 to
secure the note.  (For further  details,  see Note F to  Consolidated  Financial
Statements included in Item 8 (Appendix A) of this report.)

     On  February  28,  1999 the  General  Partners  refinanced  the Walden Pond
mortgage  notes of $5,500,000  and $900,000 with monthly  principal  payments of
$6,500 and $1,100,  respectively,  and interest payments at the Contract rate of
interest equal to the greater of (a) 0.5% per annum in excess of the prime rate,
or (b) 8% per annum. The notes mature on February 28, 2001. The Partnership paid
closing costs of $30,450 for the refinancing.

     In June 1997, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of fFinancial  Accounting  Standards ("SFAS") No. 133, "Accounting for
Derivative  Instruments  and  Hedging  Activities".  SFAS  No.  133  establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts,  and for hedging activities.
It  requires  recognition  of all  derivative  instruments  as either  assets or
liabilities in the statement of financial position and measure those instruments
at fair value.  This statement will be effective for the  Partnership  beginning
January 1, 2001.  The  Partnership  did not hold any  derivative  instruments at
December  31,  2000,  and  as  such,  the  Partnership   does  not  expect  this
pronouncement  to  have a  significant  impact  on the  Partnership's  financial
statements.

Operations

     The following  discussion  relates to the operations of the Partnership and
its properties  (Fenland  Field,  Walden Pond and Pavillion  Apartments) for the
years ended December 31, 2000,  1999 and 1998. The sale of Indian Run Apartments
in March 1998,  significantly  impacts the  comparability  of the  Partnership's
operations for the years ended December 31, 1999 and 1998.

2000 compared to 1999

     Net income  decreased  during 2000 when compared to 1999 as the increase in
total expenses more than offset the increase in total  revenue.  The increase in
total revenue is primarily a result of rental rate increases  implemented at all
of the Partnership's properties at the end of the first quarter of 2000. Revenue
also increased due to increases in interest income resulting from higher average
cash and cash  equivalent  balances  available for  investment  when compared to
1999.

                                      -7-
<PAGE>

     Total  expenses in 2000  increased  when compared to 1999 with increases in
real  estate tax,  depreciation  and  interest  expenses  partially  offset by a
decrease in maintenance  expense.  Real estate tax expense increased as a result
of a reassessment  of property  values at Walden Pond and Pavillion by the local
authority.  Depreciation and amortization  expense increased in conjunction with
increased  capital  improvements  completed at the properties.  Interest expense
increased  as a result of  increases  in the  prime  lending  rate.  Maintenance
expense decreased as a result of capital improvements completed during the year.

1999 compared to 1998

     Net  income,  net of Indian  Run's  activity,  decreased  during  1999 when
compared to 1998 as the increase in total expenses more than offset the increase
in total  revenue.  The  increase  in total  revenue is a result of rental  rate
increases  implemented at all the  Partnership's  properties at the end of first
quarter. Interest income decreased due to lower average cash and cash equivalent
balances available for investment in 1999, as a result of the sale of Indian Run
Apartments in 1998.

     Total expenses in 1999, net of Indian Run's activity, increased as compared
to 1998 with  increases in general and  administrative  and  interest  expenses.
These  increases  were  partially  offset  by a  decrease  in  depreciation  and
amortization  expenses.  General and  administrative  expenses  increased due to
higher  expenses   incurred  in  connection  with  preparation  and  mailing  of
Partnership  reports  and  other  investor   communications.   Depreciation  and
amortization  expense  decreased as fixed asset additions  purchased in previous
years became fully depreciated.  Interest expense increased with the refinancing
of Walden Pond  Apartments'  mortgage notes payable.  For further  discussion of
this note, see Note F to the Consolidated  Financial Statements included in Item
8 (Appendix A) of this report.

ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Partnership's  future earnings,  cash flows and fair values relevant to
financial  instruments are dependent upon prevalent market rates. Market risk is
the risk of loss from adverse changes in market prices and interest  rates.  The
Partnership  manages its market risk by matching  projected  cash  inflows  from
operating  activities,   investing  activities  and  financing  activities  with
projected   cash  outflows  to  fund  debt   payments,   acquisitions,   capital
expenditures,  distributions  and other cash  requirements.  The majority of the
Partnership's  outstanding  debt  (maturing at various times through 2002) has a
fixed interest rate, which minimizes the interest rate risk.

     The Partnership has total outstanding debt of approximately  $16,225,000 at
December 31, 2000, of which approximately  $5,903,000,  or 36%, is variable rate
debt.  If market  rates of  interest  on the  Partnership's  variable  rate debt
increase by ten percent (or  approximately  90 basis  points),  the  increase in
interest expense on the  Partnership's  variable rate debt would decrease future
earnings and cash flows by approximately  $100,000.  If market rates of interest
increase by ten percent,  the fair value of the Partnership's  total outstanding
debt would decrease by approximately $51,000. If market rates of interest on the
Partnership's  variable rate debt decrease by ten percent (or  approximately  90
basis points),  the decrease in interest expense on the  Partnership's  variable
rate  debt  would  increase  future  earnings  and cash  flows by  approximately
$100,000. If market rates of interest decrease by ten percent, the fair value of
the  Partnership's  total  outstanding  debt  would  increase  by  approximately
$51,000.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The financial  statements and supplementary data are listed in the Index to
Financial  Statements and Financial  Statement Schedule appearing on Page F-2 of
this Annual Report on Form 10-K.


ITEM 9.   CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
          FINANCIAL DISCLOSURE

     None.
                                      -8-
<PAGE>

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The Partnership has no directors or executive  officers.  Information as to
the  directors  and  executive  officers  of The Krupp  Corporation,  which is a
General Partner of KRLP-IV,  and The Krupp Company Limited  Partnership-II,  the
other General Partner of KRLP-IV, is as follows:

             Name and Age                  Position with The Krupp Corporation

             Douglas Krupp (54)            Co-Chairman of the Board
             George Krupp (56)             Co-Chairman of the Board
             Frank Apeseche (43)           President
             David Quade (57)              Treasurer

     Douglas Krupp  co-founded  and serves as  Co-Chairman  and Chief  Executive
Officer of The Berkshire  Group,  an integrated real estate  financial  services
firm engaged in real estate acquisitions, property management, mortgage banking,
investment sponsorship,  venture capital investing and financial management. Mr.
Krupp  has held the  position  of  Co-Chairman  since  The  Berkshire  Group was
established  as The  Krupp  Companies  in 1969 and he has  served  as the  Chief
Executive  Officer  since  1992.  Mr.  Krupp  serves as a member of the Board of
Trustees at Brigham & Women's Hospital. He is a graduate of Bryant College where
he received an honorary Doctor of Science in Business Administration in 1989 and
was elected trustee in 1990.

     George Krupp is the Co-Founder and  Co-Chairman of The Berkshire  Group, an
integrated  real  estate   financial   services  firm  engaged  in  real  estate
acquisitions,  property management,  mortgage banking,  investment  sponsorship,
venture  capital  investing  and  financial  management.  Mr. Krupp has held the
position of Co-Chairman  since The Berkshire  Group was established as The Krupp
Companies in 1969. Mr. Krupp has been an instructor of history at the New Jewish
High  School in  Waltham,  Massachusetts  since  September  of 1997.  Mr.  Krupp
attended the  University  of  Pennsylvania  and Harvard  University  and holds a
Master's Degree in History from Brown University.

     Frank Apeseche is the President of The Berkshire Group. Mr. Apeseche joined
The  Berkshire  Group in 1986.  He served as Chief  Financial  Officer and Chief
Planning  Officer from 1992 to 1995.  Mr.  Apeseche  was the  founding  Managing
Partner of BG Affiliates, a private equity investment firm. Prior to joining The
Berkshire  Group he  served  as a  manager  with  Andersen  Consulting  where he
specialized  in  providing  technology  solutions  to Fortune 500  clients.  Mr.
Apeseche received a BA with distinction from Cornell  University and an MBA with
Honors from the University of Michigan.

     David  C.  Quade is the  Treasurer  and  Executive  Vice  President  of The
Berkshire  Group. Mr. Quade joined The Berkshire Group in 1998. Prior to joining
The Berkshire Group, he was a Principal and Executive  V.P./CFO at Leggat McCall
Properties  for eighteen  years.  At Leggatt  McCall,  Mr.  Quade had  extensive
experience in business strategic planning, financial workouts, funds management,
and corporate  financing  regarding asset  management.  Prior to that, Mr. Quade
worked in senior  financial  capacities for two NYSE  companies,  North American
Mortgage  Investors and Equitable Life Mortgage & Realty Investors,  and he also
worked at Coopers & Lybrand.  He has a P.A.P.  from the Northwestern  University
Graduate School of Business, and a B.S. degree and a Master's degree in Business
Administration from Central Michigan University.


ITEM 11. EXECUTIVE COMPENSATION

     The Partnership has no directors or executive officers.

                                      -9-
<PAGE>

ITEM 12.      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     As of February 15, 2001, beneficial owners of record owning more than 5% of
the Partnership's 30,000 outstanding Units were as follows:
<TABLE>
<CAPTION>

      Title           Name and Address        Amount and Nature         Percent
      of                   Of                        of                 Of
      Class           Beneficial Owner       Beneficial Ownership       Class
  -------------  -------------------------- ----------------------    ----------

<S>              <C>                         <C>            <C>           <C>
  Investor       Madison Avenue Investment   1,671.38 Units (1)(2)        5.60%
  Limited         Partners, LLC
  Partner Units  P.O. Box 7533
                 Incline Village, NV 89452

  Investor       First Equity Realty, LLC
  Limited        555 Fifth Avenue, 9th Floor
  Partner Units  New York, NY 10017          1,671.38 Units (1)(3)        5.60%

  Investor       The Harmony Group II, LLC
  Limited        P.O. Box 7533
  Partner Units  Incline Village, NV 89452   1,671.38 Units (1)(4)        5.60%

  Investor       Ronald M. Dickerman
  Limited        555 Fifth Avenue, 9th Floor
  Partner Units  New York, NY 10017          1,671.38 Units (1)(5)        5.60%

  Investor       Bryan E. Gordon
  Limited        P.O. Box 7533
  Partner Units  Incline Village, NV 89452   1,671.38 Units (1)(6)        5.60%

  Investor       Equity Resources Group,
  Limited         Incorporated
  Partner Units  14 Story Street
                 Cambridge, MA 02138         1,704.50 Units (7)           5.70%
<FN>
(1)  According to the statement on Schedule 13G originally  filed on December 6,
     1999 by Madison  Avenue  Investment  Partners,  LLC("MAIP"),  First  Equity
     Realty , LLC ("First Equity"), The Harmony Group II, LLC ("Harmony Group"),
     Ronald M.  Dickerman  and Bryan E.  Gordon  (collectively,  the  "Reporting
     Persons"),  as amended by Amendment No. 1 thereto  dated  February 11, 2000
     (as amended,  the "Madison  Schedule  13G"),  each of MAIP,  First  Equity,
     Harmony Group and  Reporting  Persons may be deemed to constitute a "group"
     within the meaning of Section  13(d)(3) of the Exchange  Act.  According to
     the  Madison  Schedule  13D,  MAIP is the  controlling  person  of  various
     entities  which are the nominee  owners of, or the  successors by merger to
     the assets of nominee owners of, Limited Partner  Interest (the "Units") of
     the Issuer. As stated in the Madison Schedule 13D, these nominees,  none of
     which  beneficially  own 5% or  more  of the  Units,  are  ISA  Partnership
     Liquidity Investors,  Madison/AG  Partnership Value Partners III and Cobble
     Hill Investments, LP.

     According to the Madison Schedule 13D, the controlling  members of MAIP are
     The Harmony Group II, LLC, a Delaware  limited  liability  company of which
     Bryan E. Gordon is the Managing Member, and First Equity Realty, LLC, a New
     York limited liability company of which Ronald M. Dickerman is the Managing
     Member.

(2)  According to the Madison Schedule 13G, Madison Avenue Investment  Partners,
     LLC has sole voting and dispositive power with respect to 1,671.38 units of
     the Partnership.

(3)  According to the Madison Schedule 13G, First Equity Realty,  LLC has shared
     voting  and  dispositive  power  with  respect  to  1,671.38  units  of the
     Partnership.

(4)  According to the Madison Schedule 13G, The Harmony Group II, LLC has shared
     voting  and  dispositive  power  with  respect  to  1,671.38  units  of the
     Partnership.

                                      -10-
<PAGE>

(5)  According  to the Madison  Schedule  13G,  Ronald M.  Dickerman  has shared
     voting  and  dispositive  power  with  respect  to  1,671.38  units  of the
     Partnership.

(6)  According to the Madison  Schedule  13G,  Bryan E. Gordon has shared voting
     and dispositive power with respect to 1,671.38 units of the Partnership.

(7)  According to the statement on Schedule 13D originally filed on December 12,
     1996 by Equity Resources  Group,  Incorporated,  Equity Resource  Cambridge
     Fund Limited Partnership, Equity Resource General Fund Limited Partnership,
     Equity  Resource Fund XVI Limited  Partnership,  Equity  Resource Fund XVII
     Limited Partnership, Equity Resource Fund XIX Limited Partnership, James E.
     Brooks,  Marks S. Thompson and Eggert  Dagbjartsson as amended by Amendment
     No. 1 thereto  dated April 14,  1997 (as  amended,  the  "Equity  Resources
     Schedule 13D"), Equity Resources Group, Incorporated, James E. Brooks, Mark
     S.  Thompson  and  Eggert  Dagbjartsson,  in their  capacities  as  general
     partners of each of Equity  Resource  Cambridge  Fund Limited  Partnership,
     Equity Resource General fund Limited Partnership,  Equity Resource Fund XVI
     Limited  Partnership,  Equity  Resource Fund XVII Limited  Partnership  and
     Equity Resource Fund XIX Limited Partnership, respectively, share the power
     to vote or direct the vote and to dispose of or direct the  disposition  of
     1,704.5 units..
</FN>
</TABLE>

     The only  interests  held by  management or its  affiliates  consist of its
     General Partner and Original Limited Partner Interests.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The Partnership does not have any directors, executive officers or nominees
for  election  as  director.  Please  see Note I to the  Consolidated  Financial
Statements (Appendix A).

                                      -11-
<PAGE>

                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)       1.  Consolidated  Financial  Statements  - see  Index to  Consolidated
          Financial  Statements and Schedule included under Item 8 (Appendix A),
          on page F-2 of this Report.

     2.   Consolidated  Financial Statement Schedule - see Index to Consolidated
          Financial  Statements and Schedule included under Item 8 (Appendix A),
          on page F-2 of this Report.  All other  schedules  are omitted as they
          are not  applicable or not required or the  information is provided in
          the Consolidated Financial Statements or the Notes thereto.

     (b)  Exhibits:

          Number and Description Under Regulation S-K

          The following reflects all applicable Exhibits required under Item 601
          of Regulation S-K:

     (4)  Instruments   defining  the  rights  of  security  holders   including
          indentures:

     (4.1)Amended Agreement of Limited  Partnership dated as of January 12, 1983
          [Exhibit  A  to  Prospectus  included  in  Registrant's   Registration
          Statement on Form S-11 (File 2-80650)].*

     (4.2)Amended   Certificate   of   Limited   Partnership   filed   with  the
          Massachusetts  Secretary  of State on March 31, 1983  [Exhibit  4.2 to
          Registrant's  Annual Report on Form 10-K dated December 31, 1983 (File
          No. 2-80650)].*

     (10) Material Contracts

Fenland Field Apartments

     (10.1) Management  Agreement  dated  December 19, 1986 between Krupp Realty
          Limited  Partnership-IV,  as Owner,  and BRI OP  Limited  Partnership,
          formerly  known as Berkshire  Property  Management,  a  subsidiary  of
          Berkshire Realty Company,  Inc.  [Exhibit 10.3 to Registrant's  Annual
          Report on Form 10-K dated December 31, 1986 (File No. 0-11987)].*

     (10.2) Modification and Restatement of Promissory Note dated April 28, 1993
          between Krupp Realty  Limited  Partnership-IV  and John Hancock Mutual
          Life Insurance Company [Exhibit 10.2 to Registrant's  Annual Report on
          Form 10-K dated December 31, 1993 (File No. 0-11987)].*

     (10.3) Modification and Restatement of Indemnity Deed of Trust and Security
          Agreement   dated  April  28,  1993  between   Krupp  Realty   Limited
          Partnership-IV and John Hancock Mutual Life Insurance Company [Exhibit
          10.3 to  Registrant's  Annual  Report on Form 10-K dated  December 31,
          1993 (File No. 0-11987)].*

Walden Pond Apartments

     (10.4) Management Agreement dated June 2, 1983 between Krupp Realty Limited
          Partnership-IV,  as Owner,  and BRI OP Limited  Partnership,  formerly
          known as Berkshire  Property  Management,  a  subsidiary  of Berkshire
          Realty Company,  Inc. [Exhibit 10.19 to Registrant's  Annual Report on
          Form 10-K dated December 31, 1983 (File No. 2-80650)].*

                                      -12-
<PAGE>

     (10.5) Certificate  of Limited  Partnership of Westbridge  Partners,  Ltd.,
          executed March 1, 1990.  [Exhibit 19.9 to Registrant's  Report on Form
          10-Q dated June 30, 1990 (File No. 0-11987)].*

     (10.6) Westbridge Partners,  Ltd. Agreement of Limited Partnership executed
          March 1, 1990. [Exhibit 20.1 to Registrant's Report on Form 10-Q dated
          June 30, 1990 (File No. 0-11987)].*

     (10.7) Bill of Sale Agreement  between Krupp Realty Limited  Partnership-IV
          and Westbridge  Partners,  Ltd., executed March 1, 1990. [Exhibit 20.2
          to  Registrant's  Report on Form 10-Q  dated  June 30,  1990 (File No.
          0-11987)].*

     (10.8) Westbridge  Partners,  Ltd. First  Amendment to Agreement of Limited
          Partnership,  executed  April 9, 1990.  [Exhibit 20.3 to  Registrant's
          Report on Form 10-Q dated June 30, 1990 (File No. 0-11987)].*

     (10.9) Order  Granting  Motion of First Boston  Mortgage  Capital Corp. for
          Relief from the Automatic  Stay dated January 28, 1992.  [Exhibit C to
          Registrant's  Report  on Form  8-K  dated  March  3,  1992  (File  No.
          0-11987)].*

     (10.10) Modification  Agreement dated February 28, 1992 between  Westbridge
          Partners,  Ltd. and University  Mortgage  Acquisition  Corp.  [Exhibit
          10.14 to  Registrant's  Annual Report on Form 10-K dated  December 31,
          1993 (File No. 0-11987)].*

     (10.11) Renewal Multifamily Note dated February 28, 1992 between Westbridge
          Partners,  Ltd. and University  Mortgage  Acquisition  Corp.  [Exhibit
          10.15 to  Registrant's  Annual Report on Form 10-K dated  December 31,
          1993 (File No. 0-11987)].*

     (10.12) Renewal Multifamily Deed of Trust, Assignment of Rents and Security
          Agreement  dated  February 28, 1992 by Westbridge  Partners,  Ltd. and
          John M. Walker, Jr., as Trustee,  and University Mortgage  Acquisition
          Corp.  [Exhibit 10.16 to Registrant's Annual Report on Form 10-K dated
          December 31, 1993 (File No. 0-11987)].*

     (10.13) First Renewal, Extension and Modification Agreements dated February
          28, 1999 between  Westbridge  Partners,  Ltd. and First Trust  Savings
          Bank.  [Exhibit 10.1 to  Registrant's  Report on Form 10-Q dated March
          31, 1999 (File No. 0-11987)].

Pavillion Apartments

     (10.14)  Management  Agreement  dated  June 2, 1983  between  Krupp  Realty
          Limited  Partnership-IV,  as Owner,  and BRI OP  Limited  Partnership,
          formerly  known as Berkshire  Property  Management,  a  subsidiary  of
          Berkshire Realty Company,  Inc. [Exhibit 10.25 to Registrant's  Annual
          Report on Form 10-K dated December 31, 1983 (File No. 2-80650)].*

     (10.15) Certificate of Limited  Partnership  of Pavillion  Partners,  Ltd.,
          executed March 1, 1990.  [Exhibit 19.1 to Registrant's  Report on Form
          10-Q dated June 30, 1990 (File No. 0-11987)].*

     (10.16) Pavillion Partners,  Ltd. Agreement of Limited Partnership executed
          March 1, 1990. [Exhibit 19.2 to Registrant's Report on Form 10-Q dated
          June 30, 1990 (File No. 0-11987)].*

                                      -13-
<PAGE>

     (10.17) Bill of Sale Agreement between Krupp Realty Limited  Partnership-IV
          and Pavillion Partners, Ltd., executed March 1, 1990. [Exhibit 19.3 to
          Registrant's  Report  on Form  10-Q  dated  June 30,  1990  (File  No.
          0-11987)].*

     (10.18) Pavillion  Partners,  Ltd. First  Amendment to Agreement of Limited
          Partnership,  executed  April 9, 1990.  [Exhibit 19.4 to  Registrant's
          Report on Form 10-Q dated June 30, 1990 (File No. 0-11987)].*

     (10.19) Pavillion  Partners,  Ltd. Chapter 11 Voluntary  Petition  executed
          June 4, 1990 in The United  States  Bankruptcy  Court for the Northern
          District of Texas,  Dallas  Division.  [Exhibit 10.51 to  Registrant's
          Annual Report on Form 10-K for the year ended  December 31, 1990 (File
          No. 0-11987)].*

     (10.20)  Pavillion   Partners,   Ltd.,   Debtor's  First  Amended  Plan  of
          Reorganization   executed  January  16,  1991  in  The  United  States
          Bankruptcy Court for the Northern District of Texas,  Dallas Division.
          [Exhibit 10.52 to Registrant's Annual Report on Form 10-K for the year
          ended December 31, 1990 (File No. 0-11987)].*

     (10.21)  Promissory  Note dated  April 13,  1994 by and  between  Pavillion
          Partners, Ltd. and Sunlife Insurance Company of America. [Exhibit 10.1
          to  Registrant's  Report on Form 10-Q  dated  June 30,  1994 (File No.
          0-11987)].*

     (10.22) Deed of Trust and Security  Agreement  dated April 13, 1994 between
          Pavillion  Partners,  Ltd. and Sunlife  Insurance  Company of America.
          [Exhibit 10.2 to Registrant's  Report on Form 10-Q dated June 30, 1994
          (File No. 0-11987)].*

     * Incorporated by reference.

     (c)  Reports on Form 8-K

          During  the last  quarter  of the year  ended  December  31,  2000 the
          Partnership did not file any reports on Form 8-K.

                                      -14-
<PAGE>

                                   SIGNATURES


     Pursuant  to the  requirements  of  Section  13 or 15(d) 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,  on the 30th day of
March, 2001.

                                       Krupp Realty Limited Partnership-IV
                                       ----------------------------------------
                                                     (Registrant)

                                  BY:  The Krupp Corporation, a General Partner
                                       ----------------------------------------

                                  BY:  /s/ Douglas Krupp
                                       ----------------------------------------
                                       Douglas Krupp
                                       Co-Chairman (Principal Executive Officer)
                                       and Director of The Krupp Corporation

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities indicated, on the 30th day of March, 2001.

Signatures                                        Titles


/s/ Douglas Krupp                  Co-Chairman (Principal Executive Officer) and
---------------------------        Director of The Krupp Corporation, a  General
Douglas Krupp                      Partner.


/s/ George Krupp                   Co-Chairman (Principal Executive Officer) and
---------------------------        Director of the Krupp Corporation, a  General
George Krupp                       Partner.

/s/ Frank Apeseche                 President of the Krupp Corporation, a General
---------------------------        Partner.
Frank Apeseche


/s/ David Quade                    Treasurer (Principal Financial and Accounting
---------------------------        Officer) of the Krupp Corporation, a  General
David Quade                        Partner.



































                                      -15-

<PAGE>


                                   APPENDIX A

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES











                 CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
                               ITEM 8 OF FORM 10-K

             ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION
                      For the Year Ended December 31, 2000







                                       F-1

<PAGE>


              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

            INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE




Report of Independent Accountants                                    F-3


Consolidated Balance Sheets at December 31, 2000 and
December 31, 1999                                                    F-4


Consolidated Statements of Operations For the Years Ended
December 31, 2000, 1999 and 1998                                     F-5 - F-6


Consolidated Statements of Changes in Partners' Deficit
For the Years Ended December 31, 2000, 1999 and 1998                 F-7


Consolidated Statements of Cash Flows For the Years Ended
December 31, 2000, 1999 and 1998                                     F-8


Notes to Consolidated Financial Statements                           F-9 - F-16


Schedule III - Real Estate and Accumulated Depreciation              F-17 - F-18


All other schedules are omitted as they are not applicable, not required, or the
information is provided in the  consolidated  financial  statements or the notes
thereto.

                                       F-2

<PAGE>








                        REPORT OF INDEPENDENT ACCOUNTANTS


To the Partners of
Krupp Realty Limited Partnership-IV and Subsidiaries:


     In  our  opinion,  the  consolidated  financial  statements  listed  in the
     accompanying index present fairly, in all material respects,  the financial
     position of Krupp  Realty  Limited  Partnership-IV  and  Subsidiaries  (the
     "Partnership")  at  December  31,  2000 and 1999,  and the results of their
     operations  and their cash flows for each of the three  years in the period
     ended December 31, 2000 in conformity with accounting  principles generally
     accepted in the United States of America. In addition,  in our opinion, the
     financial  statement  schedule  listed in the  accompanying  index presents
     fairly,  in all material  respects,  the information set forth therein when
     read in conjunction  with the related  consolidated  financial  statements.
     These  financial  statements  and  financial  statement  schedule  are  the
     responsibility of the Partnership's  management;  our  responsibility is to
     express an opinion on these  financial  statements and financial  statement
     schedule based on our audits.  We conducted our audits of these  statements
     in accordance  with  auditing  standards  generally  accepted in the United
     States of  America,  which  require  that we plan and  perform the audit to
     obtain reasonable assurance about whether the financial statements are free
     of material  misstatement.  An audit includes  examining,  on a test basis,
     evidence   supporting   the  amounts  and   disclosures  in  the  financial
     statements,  assessing  the  accounting  principles  used  and  significant
     estimates  made  by  management,   and  evaluating  the  overall  financial
     statement  presentation.  We believe  that our audits  provide a reasonable
     basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts
March 19, 2001


                                       F-3


<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                           December 31, 2000 and 1999

<TABLE>
<CAPTION>

                                     ASSETS

                                        2000              1999
                                   --------------   --------------

<S>                                   <C>             <C>
Multi-family apartment complexes,
 net of accumulated depreciation
 of $26,362,441 and $24,736,628,
 respectively (Note F)                $10,139,898      $10,774,104
Cash and cash equivalents (Note C)        740,853          856,738
Real estate tax escrows                   723,394          679,584
Prepaid expenses and other assets
 (Notes B & I)                            277,631          221,644
Investment in Securities (Note D)          95,516                -
Deferred expenses, net of accumulated
 amortization of $341,854 and
 $291,101, respectively                    40,300           56,498
                                   --------------   --------------

         Total assets                 $12,017,592      $12,588,568
                                   ==============   ==============

                        LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
  Mortgage notes payable (Note F)     $16,224,646      $16,538,127
  Due to affiliates (Note I)                    -           33,723
  Other liabilities (Note G)            1,190,128          968,318
                                   --------------   --------------
         Total liabilities             17,414,774       17,540,168

Partners' deficit (Note H):
     Investor Limited Partners
      (30,000 Units outstanding)       (3,702,397)      (3,279,094)
     Original Limited Partner          (1,382,261)      (1,364,438)
     General Partners                    (312,524)        (308,068)
                                   --------------   --------------

         Total partners' deficit       (5,397,182)      (4,951,600)
                                   --------------   --------------
         Total liabilities and
          partners' deficit           $12,017,592      $12,588,568
                                   ==============   ==============
</TABLE>

                 The accompanying notes are an integral part of
                     the consolidated financial statements.

                                       F-4
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

            CONSOLIDATED STATEMENTS OF OPERATIONS For the Year Ended
                        December 31, 2000, 1999, and 1998
                                      -----
<TABLE>
<CAPTION>


                                        2000           1999          1998
                                   -------------- -------------- -------------

Revenue:
<S>                                    <C>            <C>          <C>
     Rental                            $7,213,565     $6,989,114   $7,066,401
     Interest income (Note C)              77,044         63,102      102,842
                                   -------------- -------------- -------------
         Total revenue                  7,290,609      7,052,216    7,169,243
                                   -------------- -------------- -------------

Expenses:
     Operating (Notes E and I)          1,846,098      1,830,422    1,916,491
     Maintenance                          557,813        594,780      606,271
     Real estate taxes                    816,275        701,956      724,018
     Management fees (Note I)             291,677        271,555      287,049
     General and administrative
      (Note I)                            222,339        225,045      138,201
     Depreciation and amortization      1,676,566      1,537,145    1,762,642
     Interest (Note F)                  1,543,174      1,422,506    1,154,453
                                   -------------- -------------- -------------

         Total expenses                 6,953,942      6,583,409    6,589,125
                                   -------------- -------------- -------------

Income before minority  interest,
  gain on sale of property
  and extraordinary loss                  336,667        468,807      580,118
Minority interest                          (2,682)        (4,438)      (6,028)
Gain on sale of property (Note E)              -              -     2,960,743
                                   -------------- --------------- ------------
Income before extraordinary loss          333,985        464,369    3,534,833
Extraordinary loss from early
  extinguishment of debt (Note E)              -              -      (389,523)
                                   -------------- --------------- ------------
Net income (Note J)                      $333,985       $464,369   $3,145,310
                                   ============== =============== ============

Allocation of net income (Note H):

     Investor Limited Partners
       (30,000 Units outstanding):
         Income before gain on sale
           of property and
           extraordinary loss            $317,286       $441,150     $545,386
         Gain on sale of property              -              -     2,931,136
         Extraordinary loss                    -              -      (385,628)
                                   -------------- --------------- ------------
         Net income                      $317,286       $441,150   $3,090,894
                                   ============== =============== ============

</TABLE>

                                    Continued
                                       F-5

<PAGE>


              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

          CONSOLIDATED STATEMENTS OF OPERATIONS, Continued For the Year
                     Ended December 31, 2000, 1999, and 1998
                                      -----

<TABLE>
<CAPTION>

                                       2000            1999           1998
                                   -------------- --------------- ------------

<S>                                <C>            <C>             <C>
     Investor Limited Partners,
      Per Unit:
         Income before gain on sale
           of property and
           extraordinary loss              $10.58         $14.71       $18.18
         Gain on sale of property              -              -         97.70
         Extraordinary loss                    -              -        (12.85)
                                   -------------- --------------- ------------
         Net income                        $10.58         $14.71      $103.03
                                   ============== =============== ============

     Original Limited Partner:
         Income before gain on sale
           of property and
           extraordinary loss             $13,359        $18,575      $22,964
         Gain on sale of property              -              -            -
         Extraordinary loss                    -              -            -
                                   -------------- --------------- ------------
         Net income                       $13,359        $18,575      $22,964
                                   ============== =============== ============

     General Partners:
         Income before gain on sale
           of property and
           extraordinary loss              $3,340         $4,644       $5,740
         Gain on sale of property              -              -        29,607
         Extraordinary loss                    -              -        (3,895)
                                   -------------- --------------- ------------
         Net income                        $3,340         $4,644      $31,452
                                   ============== =============== ============

</TABLE>
























               The accompanying notes are an integral part of the
                       consolidated financial statements.
                                       F-6

<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

         CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' DEFICIT For the
                  Year Ended December 31, 2000, 1999, and 1998
                                      -----
<TABLE>
<CAPTION>

                          Investor      Original                   Total
                          Limited       Limited       General      Partners'
                          Partners      Partner       Partners     Deficit
                         -----------  ------------  -----------  ------------

<S>                      <C>           <C>           <C>         <C>
Balance at               $(3,216,956)  $(1,339,425)  $(307,186)  $(4,863,567)
   December 31, 1997

Net income                 3,090,894        22,964      31,452     3,145,310

Distributions             (2,853,592)      (35,369)    (29,182)   (2,918,143)

Balance at               -----------  ------------  -----------  ------------
  December 31, 1998       (2,979,654)   (1,351,830)   (304,916)   (4,636,400)


Net income                   441,150        18,575       4,644       464,369

Distributions               (740,590)      (31,183)     (7,796)     (779,569)
                         -----------  ------------  -----------  ------------
Balance at
  December 31,1999        (3,279,094)   (1,364,438)   (308,068)   (4,951,600)

Net income (Note H)          317,286        13,359       3,340       333,985

Distributions
(Note H)                    (740,589)      (31,182)     (7,796)     (779,567)
                         -----------  ------------  -----------  ------------

Balance at
  December 31, 2000      $(3,702,397)  $(1,382,261)  $(312,524)  $(5,397,182)
                         ===========  ============  ===========  ============
</TABLE>

The per Unit  distributions for the years ended December 31, 2000, 1999 and 1998
were  $24.69,  $24.69  and  $95.12,  respectively,  of which $0,  $0 and  $67.12
represented a return of capital, respectively.



               The accompanying notes are an integral part of the
                       consolidated financial statements.

                                       F-7
<PAGE>


              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

            CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year Ended
                        December 31, 2000, 1999, and 1998
                                      -----
<TABLE>
<CAPTION>

                                                2000         1999       1998
                                              ---------   ---------  ----------
Cash flows from operating activities:
<S>                                           <C>         <C>        <C>
     Net income                               $ 333,985   $ 464,369  $3,145,310
     Adjustments to reconcile net income to
       net cash provided by operating
       activities:
         Depreciation and amortization        1,676,566   1,537,145   1,762,642
         Interest earned on repair escrow            -           -      (12,898)
         Gain on sale of property                    -           -   (2,960,743)
         Extraordinary loss from early
           extinguishment of debt                    -           -      389,523
         Changes in assets and liabilities:
              Decrease (increase) in prepaid
                expenses and other assets       (99,797)   (105,521)     23,019
              Increase (decrease) in other
                liabilities                     134,187      23,850    (276,153)
              Increase (decrease) in due to
                 affiliates                     (33,723)     22,989     (30,837)
              Releases from real estate tax
                and insurance escrows due to
                sale of  property                    -           -       33,722
                                              ---------   ---------  ----------

                  Net cash provided by
                    operating activities      2,011,218   1,942,832   2,073,585
                                              ---------   ---------  ----------

Cash flows from investing activities:
     Deposits to replacement reserve escrow          -           -      (10,769)
     Withdrawals from replacement reserve
       escrow                                        -           -      315,159
     Release from replacement reserve
       escrows due to sale of property               -           -       11,493
     Additions to fixed assets                 (991,607)   (661,282) (1,085,983)
     Increase (decrease) in other
       liabilities for fixed asset additions     (7,893)      5,899       1,994
     Proceeds from sale of property, net             -           -    5,711,482
                                              ---------   ---------  ----------

                  Net cash (used in)
                    provided by investing
                    activities                 (999,500)   (655,383)  4,943,376
                                              ---------   ---------  ----------

Cash flows from financing activities:
     Principal payments on mortgage notes
       payable                                 (313,481)   (394,922)   (756,495)
     Repayment of mortgage notes payable             -           -   (2,638,042)
     Decrease (increase) in deferred
       expenses                                 (34,555)    (30,450)      3,191
     Payment of prepayment premium                   -           -     (335,863)
     Distributions                             (779,567)   (779,569) (2,918,143)
                                              ---------   ---------  ----------

                  Net cash used in financing
                    activities               (1,127,603) (1,204,941) (6,645,352)
                                              ---------   ---------  ----------

Net (decrease) increase in cash and cash
  equivalents                                  (115,885)     82,508     371,609
Cash and cash equivalents, beginning of the
  year                                          856,738     774,230     402,621
                                              ---------   ---------  ----------
Cash and cash equivalents, end of year        $ 740,853   $ 856,738   $ 774,230
                                              =========   =========  ==========

Non-cash investing activities:
  Investment in securities                      $95,516          -           -
</TABLE>

               The accompanying notes are an integral part of the
                       consolidated financial statements.
                                       F-8

<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                      -----

A.   Organization

     Krupp Realty Limited  Partnership-IV  ("KRLP-IV") was formed on December 1,
     1982 by filing a Certificate of Limited  Partnership in The Commonwealth of
     Massachusetts.  KRLP-IV  terminates  on December 31, 2020,  unless  earlier
     terminated  upon  the  sale  of  the  last  of  KRLP-IV  and  Subsidiaries'
     properties  or the  occurrence  of certain other events as set forth in the
     Partnership Agreement.

     KRLP-IV  issued  all  of  the  General  Partner   Interests  to  The  Krupp
     Corporation,  a  Massachusetts  corporation,  and The Krupp Company Limited
     Partnership-II,  a  Massachusetts  limited  partnership,  in  exchange  for
     capital  contributions  aggregating  $1,000.  Except under certain  limited
     circumstances  upon  termination of KRLP-IV,  the General  Partners are not
     required to make any additional capital contributions.  KRLP-IV also issued
     all of the Original Limited Partner  Interests to The Krupp Company Limited
     Partnership-II  in  exchange  for a capital  contribution  of  $4,000.  The
     Original  Limited  Partner is not required to make any  additional  capital
     contributions  to  KRLP-IV.  On January 18,  1983,  KRLP-IV  commenced  the
     offering of up to 30,000 Units of Investor  Limited Partner  Interests (the
     "Units").  As of March 31, 1983,  KRLP-IV  received  subscriptions  for all
     30,000  Units at $1,000 per Unit and  therefore,  the public  offering  was
     successfully completed on that date.

     In 1990,  the General  Partners on behalf of KRLP-IV  formed three  limited
     partnerships:  Pavillion  Partners,  Ltd., Copper Creek Partners,  Ltd. and
     Westbridge   Partners,   Ltd.  At  the  same  time,  the  General  Partners
     transferred ownership of Pavillion Apartments to Pavillion Partners,  Ltd.,
     Copper Creek  Apartments to Copper Creek  Partners,  Ltd.,  and Walden Pond
     Apartments  to  Westbridge  Partners,  Ltd. in exchange for  KRLP-IV's  99%
     Limited  Partner  Interest in the new  entities.  Westcop  Corporation,  an
     affiliate of the General  Partners,  contributed a total of $11,216 in cash
     to the entities and is the General Partner in each, with a 1% interest.  On
     March 3, 1992,  Copper Creek was foreclosed upon by the holder of the first
     and  second  mortgage  notes  pursuant  to an  agreement  approved  by  the
     Bankruptcy Court.

     KRLP-IV,  Pavillion  Partners,  Ltd.,  and  Westbridge  Partners,  Ltd. are
     collectively known as Krupp Realty Limited  Partnership-IV and Subsidiaries
     (collectively the "Partnership").

     As of December 31, 2000, the Partnership owned three multi-family apartment
     complexes.

B.   Significant Accounting Policies

     The  Partnership  uses the  following  accounting  policies  for  financial
     reporting  purposes,  which may differ in certain  respects from those used
     for federal income tax purposes (see Note J).

     Basis of Presentation

     The consolidated  financial  statements  present the  consolidated  assets,
     liabilities  and  operations  of  Pavillion  Partners,   Ltd.,   Westbridge
     Partners,  Ltd.  and KRLP-IV  (see Note A). All  intercompany  balances and
     transactions have been eliminated.  At December 31, 2000 and 1999, minority
     interest  of $8,589  and  $11,271,  respectively,  were  included  in other
     assets.

     Risks and Uncertainties

     The  Partnership  invests its cash  primarily  in deposits and money market
     funds with commercial banks. The Partnership has not experienced any losses
     to date on its invested cash.

     The  preparation  of financial  statements  in conformity  with  accounting
     principles  generally  accepted  in the United  States of America  requires
     management  to make  estimates  and  assumptions  that affect the  reported
     amount of assets and  liabilities,  contingent  assets and  liabilities and
     revenues and expenses  during the reporting  period.  Actual  results could
     differ from those estimates.

                                    Continued
                                       F-9
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----

B.   Significant Accounting Policies, Continued

     Cash and Cash Equivalents

     The  Partnership  includes all short-term  investments  with  maturities of
     three  months  or less  from  the  date of  acquisition  in cash  and  cash
     equivalents.  The cash investments are recorded at cost, which approximates
     current market values.

     Rental Revenue

     Leases require the payment of base rent monthly in advance. Rental revenues
     are  recorded on the  accrual  basis.  Real  Estate Real estate  assets and
     equipment  are  stated  at  depreciated  cost.  Pursuant  to  Statement  of
     Financial   Accounting  Standards  Opinion  No.  121  "Accounting  for  the
     Impairment of Long-Lived  Assets and for  Long-Lived  Assets to be Disposed
     of", impairment losses are recorded on long-lived assets used in operations
     on a property by property  basis,  when events and  circumstances  indicate
     that  the  real  estate   assets  might  be  impaired  and  the   estimated
     undiscounted cash flows, without interest charges, to be generated by those
     assets  are  less  than  the  carrying   amount  of  those   assets.   Upon
     determination  that an  impairment  has  occurred,  those  assets  shall be
     reduced to fair value.

     Expenditures   for  ordinary   maintenance  and  repairs  are  expensed  to
     operations as they are incurred.  Significant  renovations and improvements
     which  improve  or extend the  useful  life of the assets are  capitalized.
     Except for amounts attributed to land, rental property and improvements are
     depreciated  over their  estimated  useful  lives  using the  straight-line
     method. The estimated useful lives by asset category are:

                   Buildings and improvements            3 to 25 years
                   Appliances, carpeting and equipment   3 to 8 years

     The  Partnership  classifies  assets as available for sale upon the General
     Partners committing to a formal plan of disposal. The Partnership is in the
     process of determining the marketability of the  Partnership's  real estate
     assets but the  General  Partners  have not  committed  to a formal plan of
     disposition  and therefore no properties  have been classified as available
     for sale.

     Deferred Expenses

     Costs of obtaining and recording  mortgages on the properties are amortized
     over the term of the related mortgage notes using the straight-line  method
     which approximates the effective interest method.

     Income Taxes

     The  Partnership  is not  liable  for  federal  or  state  income  taxes as
     Partnership's  income or loss is  allocated  to the Partners for income tax
     purposes.  In the event that the  Partnership's tax returns are examined by
     the Internal  Revenue Service or state taxing authority and the examination
     results in a change in Partnership taxable income or loss, such change will
     be reported to the Partners.










                                    Continued
                                      F-10
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----


B.   Significant Accounting Policies, Continued

     Descriptive Information About Reportable Segments

     The Partnership operates and develops apartment  communities which generate
     rental and other income through the leasing of apartment units. The General
     Partners  separately  evaluate the performance of each of the Partnership's
     apartment communities.  However,  because each of the apartment communities
     have similar economic  characteristics,  facilities,  services and tenants,
     the  apartment  communities  have been  aggregated  into a single  dominant
     apartment communities segment.

     All revenue is from external  customers  and no revenue are generated  from
     transactions  with other segments.  There are no tenants which  contributed
     10% or more of the Partnership's total revenue during 2000, 1999 or 1998.

     Recent Accounting Pronouncements

     In June 1997, the Financial  Accounting  Standards  Board  ("FASB")  issued
     Statement of financial  Accounting  standards ("SFAS") No. 133, "Accounting
     for  Derivative   Instruments  and  Hedging   Activities".   SFAS  No.  133
     establishes accounting and reporting standards for derivative  instruments,
     including certain derivative  instruments embedded in other contracts,  and
     for  hedging  activities.   It  requires   recognition  of  all  derivative
     instruments  as either assets or  liabilities in the statement of financial
     position and measure those  instruments at fair value.  This statement will
     be effective for the Partnership beginning January 1, 2001. The Partnership
     did not hold any derivative  instruments at December 31, 2000, and as such,
     the Partnership  does not expect this  pronouncement  to have a significant
     impact on the Partnership's financial statements.

     Investment in Securities

     The investment in securities is carried at its original issuance  valuation
     as the  common  stock is not  listed or traded  on an  exchange  and is not
     considered  a  marketable  security  pursuant  to  Statement  of  Financial
     Standards Opinion No. 115,  "Accounting for Certain Investments in Debt and
     Equity Securities" (FAS 115").

C.   Cash and Cash Equivalents

     Cash and cash equivalents consisted of the following:
<TABLE>
<CAPTION>

                                            December 31,        December 31,
                                               2000                1999
                                         -----------------   ------------------
<S>                                          <C>                  <C>
         Cash and money market accounts      $740,853             $856,738
                                         =================   ==================
</TABLE>












                                    Continued
                                      F-11
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----

D.   Investment in Securities

     On October 5, 2000,  the  Partnership,  as a member of an alliance of major
     multifamily  real  estate  companies,  executed  a master  lease  agreement
     ("MLA") with a provider of high-speed internet, video and voice services to
     multifamily  communities.  Pursuant to the MLA, the Partnership granted the
     provider  preferred  lease,  license  and  access  rights to  provide  data
     services,  consisting of high-speed  broadband  internet access,  and video
     services, to the residents at some of its multifamily communities for a ten
     year period. In exchange for these rights, the Partnership received 366,691
     shares of common stock which were valued at $.2285 per share or $83,823. In
     addition,  the Partnership will receive 7.5% of the gross revenues that the
     provider  obtains from providing its services as well as a fixed amount for
     each resident that executes a subscriber agreement. In conjunction with the
     execution  of the MLA,  the  Partnership  made an  investment  of $8,406 in
     exchange for 36,785 additional shares of common stock also valued at $.2285
     per share. The Partnership  incurred  approximately $3,287 in closing costs
     related  to the  acquisition  by the  Partnership  and  the  closing  costs
     incurred  were  recorded as an  investment  in  securities in the financial
     statements as of December 31, 2000.

E.   Sale of Indian Run Apartments

     On March 31, 1998,  the  Partnership  sold Indian Run  Apartments  ("Indian
     Run"),  a 256-unit  multi-family  apartment  complex,  located in  Abilene,
     Texas, to an unaffiliated third party. The Partnership received $5,850,000,
     less  repayment of the mortgage note payable and interest of $2,658,664 and
     closing  costs  of  $138,518.   For  financial  reporting   purposes,   the
     Partnership  realized  a gain of  $2,960,743  on the  sale.  The  gain  was
     calculated as the difference  between the property's selling price less net
     book value of the property and closing costs.

     In  conjunction  with  the sale of the  property  on March  31,  1998,  the
     Partnership  prepaid the mortgage  note.  As a result of the  retirement of
     debt,  the  Partnership  incurred a  prepayment  premium of  $335,863.  The
     prepayment  premium,  as well as  unamortized  deferred  mortgage  costs of
     $53,660,  are reported in the  Consolidated  Statement of  Operations as an
     extraordinary loss from early extinguishment of debt.

F.   Mortgage Notes Payable

     The properties  owned by the  Partnership are pledged as collateral for the
     respective  non-recourse mortgage notes payable outstanding at December 31,
     2000 and 1999. Mortgage notes payable consisted of the following:

<TABLE>
<CAPTION>


                                     Principal        Annual
                             -----------------------  Interest
           Property              2000        1999     Rate        Maturity Date
     ----------------------- ------------ ----------- ---------- ---------------

<S>                           <C>         <C>         <C>       <C>
     Fenland Field Apartments $ 3,720,715 $ 3,873,996     9.25%     June 1, 2002

     Walden Pond Apartments     5,903,327   5,986,927 See below November 1, 2002

     Pavillion Apartments       6,600,604   6,677,204     9.25%      May 1, 2001
                              ----------- -----------

          Total               $16,224,646 $16,538,127
                              =========== ===========
</TABLE>








                                    Continued
                                      F-12
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----

F.   Mortgage Notes Payable, Continued

     Fenland Field Apartments

     The property is subject to a non-recourse mortgage note payable, based on a
     20-year  amortization,  in equal  monthly  installments  of  principal  and
     interest of $42,167. At maturity, all unpaid principal ($3,824,206) and any
     accrued and unpaid  interest  are due.  The note may be prepaid  subject to
     certain  prepayment  premiums.  The mortgage note is  collateralized by the
     property.

     Based on the borrowing  rates  currently  available to the  Partnership for
     bank loans with  similar  terms and average  maturities,  the fair value of
     long-term debt is  approximately  $3,863,000 and $3,903,000 at December 31,
     2000 and 1999, respectively.

     As of  December  31,  2000  the  General  Partners  had  signed  agreements
     extending the mortgage note payable,  under the original terms,  until June
     1,  2002.  The  Partnership  paid  an  extension  fee of  $5,000  for  this
     privilege.

     Walden Pond Apartments

     On February 28, 1992, the prior  wrap-around  mortgage note was modified in
     bankruptcy court. The modified first mortgage note with a principal balance
     of $5,500,000,  which has a stated rate of 9.5%, is being  amortized over a
     30-year  period and requires  monthly  payments of $46,247.  For  financial
     reporting purposes,  generally accepted accounting  principles required the
     Partnership to reduce the outstanding  principal balance of the mortgage to
     the sum of the future cash flow  payments  required  under the terms of the
     mortgage,  including a final payment on February 28, 1999 of  approximately
     $5,200,000.  All cash  payments  made  subsequent  to the  restructure  are
     recorded as a reduction of the principal  balance with no interest  expense
     recognized by the Partnership. The note may be prepaid at any time, subject
     to certain prepayment premiums.

     On July 31, 1997,  the General  Partners  obtained a $900,000  non-recourse
     note (the  "Note")  for Walden  Pond  Apartments  from the same lender that
     holds the first  mortgage  note.  The Note bears interest at a rate of 9.5%
     per  annum  and,   commencing   September   1,  1997,   requires   monthly,
     interest-only  payments  until  the  maturity  date.  The Note  matures  on
     February 28, 1999, simultaneous with the first mortgage note, at which time
     all outstanding principal and any accrued interest are due. The Note may be
     prepaid in its entirety without penalty,  upon 90 days written notice,  and
     simultaneous  payment of the first  mortgage  note.  Proceeds from the Note
     were  deposited  into an escrow  account  and will be used to fund  capital
     improvements at the property. The Partnership paid closing costs of $33,082
     to obtain the Note.

     On  February  28,  1999 the  General  Partners  refinanced  the Walden Pond
     mortgage notes of $5,500,000 and $900,000 with monthly  principal  payments
     of $6,500 and $1,100,  respectively,  and interest payments at the contract
     rate of  interest  equal to the  greater of (a) 0.5% per annum in excess of
     the prime rate, or (b) 8% per annum. The notes mature on February 28, 2001.

     On November 9, 2000, the General Partners signed an agreement extending the
     mortgage  note  payable,  until  November  1, 2002.  Under the terms of the
     extension  agreement  the interest rate on the debt is reduced from prime +
     0.5% to prime - 0.5%, 9% as of December 31, 2000. The  Partnership  paid an
     extension fee of $29,555 for this privilege.

     Because the  interest  rate on Walden  Pond's debt  fluctuates  with market
     rates, the book value of the mortgages approximates fair market value.




                                    Continued

                                      F-13
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----

F.   Mortgage Notes Payable, Continued

     Pavillion Apartments

     The property is subject to a non-recourse mortgage note payable, based on a
     30-year  amortization,  in equal  monthly  installments  of  principal  and
     interest of $57,587. At maturity, all unpaid principal ($6,580,326) and any
     accrued and unpaid  interest  are due. The note may be prepaid at any time,
     subject to certain prepayment premiums.

     Based on the borrowing  rates  currently  available to the  Partnership for
     bank loans with  similar  terms and average  maturities,  the fair value of
     long-term debt is  approximately  $6,654,000 and $6,771,000 at December 31,
     2000 and 1999, respectively.

     The  General  Partners  are  currently  negotiating  an  extension  of this
     mortgage note payable. It is anticipated that the mortgage will be extended
     under terms that are substantially similar to the current terms.

Due to restrictions  on transfers and prepayment,  the Partnership may be unable
to refinance certain mortgage notes payable at such calculated fair value.

The aggregate scheduled principal amounts of long-term borrowings due during the
five years ending December 31, 2005 are $6,860,678,  $9,363,967, $0, $0, and $0,
respectively.

The  Partnership  paid interest on its mortgage notes of $1,542,659,  $1,422,506
and  $1,154,453  during  the  years  ended  December  31,  2000,  1999 and 1998,
respectively.

G.   Other Liabilities

     Other liabilities consisted of the following at December 31, 2000 and 1999:
<TABLE>
<CAPTION>

                                       2000                1998
                                -----------------   -----------------
<S>                                   <C>                 <C>
       Accounts payable               $   30,998          $   39,845
       Accrued real estate taxes         608,519             523,496
       Other liabilities                 392,943             255,300
       Tenant security deposits          157,668             149,677
                                -----------------   -----------------
                                      $1,190,128          $  968,318
                                =================   =================
</TABLE>

H.   Partners' Deficit

     Under the terms of the  Partnership  Agreement,  profits  and  losses  from
     operations are allocated 95% to the Investor  Limited  Partners,  4% to the
     Original  Limited  Partner and 1% to the General  Partners  until such time
     that the Investor  Limited  Partners  have received a return of their total
     invested capital plus a 9% per annum cumulative return thereon. Thereafter,
     profits and losses will be allocated 65% to the Investor Limited  Partners,
     28% to the Original Limited Partner and 7% to the General Partners.

     In accordance with the Partnership  Agreement,  distributions are generally
     made on the same basis as the  allocations of profits and losses  described
     above.  Upon the  occurrence  of a capital  transaction,  as defined in the
     Partnership Agreement, proceeds will be applied to the payment of all debts
     and liabilities of the Partnership  then due and then fund any reserves for
     contingent   liabilities.   Remaining   net  cash  proceeds  will  then  be
     distributed 99% to the Investor Limited Partners until they have received a
     return of their total  invested  capital  and 1% to the  General  Partners,
     thereafter  net cash proceeds will be  distributed  in accordance  with the
     Partnership Agreement.

                                    Continued
                                      F-14
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----

H.   Partners' Deficit, Continued

     As of December 31, 2000, the following cumulative partner contributions and
     allocations have been made since inception of KRLP-IV:
<TABLE>
<CAPTION>

                             Investor     Original                Total
                             Limited      Limited      General    Partners'
                             Partners     Partner      Partners   (Deficit)
                             -----------  -----------  ---------  -----------


<S>                          <C>          <C>          <C>        <C>
     Capital contributions   $30,000,000  $     4,000  $   1,000  $30,005,000
     Syndication costs        (4,050,000)          -          -    (4,050,000)
     Distributions:
       Operations             (9,455,227)    (398,127)   (99,530)  (9,952,884)
       Capital transaction    (5,313,560)          -     (53,673)  (5,367,233)
     Income (loss):
       Operations            (26,706,702   (1,286,056)  (282,756) (28,275,514)
       Capital transaction    11,823,092      297,922    122,435   12,243,449
                             -----------  -----------  ---------  -----------
     Balance at
       December 31, 2000     $(3,702,397) $(1,382,261) $(312,524) $(5,397,182)
                             ===========  ===========  =========  ===========
</TABLE>


I.   Related Party Transactions
     --------------------------

     The  Partnership  pays  property  management  fees to an  affiliate  of the
     General  Partners'  for  management  services.  Pursuant to the  management
     agreements,  management  fees are  payable  monthly  at a rate of 5% of the
     gross receipts from the properties under  management.  The Partnership also
     reimburses affiliates of the General Partners for certain expenses incurred
     in connection  with the  operation of the  Partnership  and its  properties
     including administrative expenses.

     Amounts  accrued or paid to the General  Partners  affiliates for the years
     ended December 31, 2000, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>

                                         2000           1999         1998
                                      -----------    ----------  -----------
<S>                                      <C>           <C>          <C>
         Property management fees        $291,677      $271,555     $287,049

         Expense reimbursements           295,476       269,037      275,788
                                      -----------    ----------  -----------
           Charged to operations         $587,153      $540,592     $562,837
                                      ===========    ==========  ===========
</TABLE>

     Due from affiliates  consisted of expense  reimbursements of $28,007 and is
     included in prepaid  expenses and other assets at December 31, 2000. Due to
     affiliates  consisted of expense  reimbursements of $33,723 at December 31,
     1999.









                                    Continued
                                      F-15
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                      -----

J.   Federal Income Taxes

     For federal income tax purposes,  the Partnership is depreciating  property
     using the  Accelerated  Cost  Recovery  System  ("ACRS")  and the  Modified
     Accelerated   Cost  Recovery  System   ("MACRS")   depending  on  which  is
     applicable.

     The  reconciliation  of the  net  income  for  each  year  reported  in the
     accompanying  Consolidated  Statement  of  Operations  with  the  net  loss
     reported in the Partnership's federal income tax return for the years ended
     December 31, 2000, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>

                                           2000          1999         1998
                                        -----------  ------------  -----------

<S>                                     <C>          <C>           <C>
     Net income per
       Consolidated Statement of
         Operations                        $333,985      $464,369   $3,145,310

          Difference in book and tax
            depreciation for Fenland
            Field and Indian Run            213,609       172,556      200,671

          Difference in Partnership's
            share of Pavillion Partners
            net income for tax purposes     289,727       255,803      172,490

          Difference in Partnership's
            share of Westbridge
            Partners net income for tax
            purposes                        533,554       390,020     (128,156)

          Difference between book and
            tax gain on sale of
            property                             -             -     1,742,577
                                        -----------  ------------  -----------

     Net income for federal income tax
       purposes                          $1,370,875    $1,282,748   $5,132,892
                                        ===========  ============  ===========
</TABLE>

     The  allocation of the net income for federal  income tax purposes for 2000
     is as follows:
<TABLE>
<CAPTION>

                                         Portfolio     Passive
                                         Income        Income         Total
                                        -----------  ------------  -----------

<S>                                        <C>         <C>          <C>
     Investor Limited Partners             $ 72,668    $1,229,663   $1,302,331
     Original Limited Partner                 3,060        51,775       54,835
     General Partners                           765        12,944       13,709
                                        -----------  ------------  -----------
                                            $76,493    $1,294,382   $1,370,875
                                        ===========  ============  ===========
</TABLE>

     During the years ended  December 31,  2000,  1999 and 1998 the per Unit net
     income to the Investor Limited Partners for federal income tax purposes was
     $43.41, $40.62 and $168.82, respectively.

     The basis of the  Partnership's  assets for  financial  reporting  purposes
     exceeded  its tax  basis by  approximately  $2,829,000  and  $3,594,000  at
     December 31, 2000 and 1999,  respectively.  The basis of the  Partnership's
     liabilities for financial  reporting purposes is less than its tax basis by
     approximately  $4,492,000  and  $5,868,000  at December  31, 2000 and 1999,
     respectively.

                                      F-16
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                December 31, 2000
                                      -----
<TABLE>
<CAPTION>

                              Initial Cost to             Costs Capitalized
                                Partnership           Subsequent to Acquisition
                          ----------------------- -----------------------------
                                      Buildings           Buildings  Depreciable
                                          &                   &
Description  Encumbrances    Land    Improvements  Land   Improvements  Life
------------ ------------ ---------- ------------ ------- ------------ ---------

<S>           <C>        <C>         <C>          <C>     <C>        <C>
Fenland Field
Apartments
Columbia, MD  $3,720,715 $   365,262 $ 4,852,767  $   407 $3,508,073 3 to 25 yrs

Walden Ponds
Apartments
Houston, TX    5,903,327     906,253  12,040,217    1,211  2,886,938 3 to 25 yrs

Pavillion
Apartments
Garland, TX    6,600,604     680,621   9,042,535    1,199  2,216,856 3 to 25 yrs
             ------------ ---------- -----------  ------- ----------

     Total   $16,224,646  $1,952,136 $25,935,519   $2,817 $8,611,867
             ============ ========== ===========  ======= ==========
</TABLE>
<TABLE>
<CAPTION>

                                Gross Amounts Carried at
                                      End of Year
                        ------------------------------------
                          Buildings                            Year
                            and                 Accumulated Construction Year
Description    Land     Improvements    Total   Depreciation Completed Acquired
------------  --------  ----------- ----------- ------------ --------- --------

<S>          <C>        <C>         <C>         <C>          <C>       <C>
Fenland Field
Apartments
Columbia, MD $ 365,669  $ 8,360,840 $ 8,726,509 $ 6,313,603      1970    1983

Walden Ponds
Apartments
Houston, TX    907,464   14,927,155  15,834,619  11,531,153      1982    1983

Pavillion
Apartments
Garland, TX    681,820   11,259,391  11,941,211   8,517,685      1983    1983
            ----------  ----------- ----------- -----------

     Total  $1,954,953  $34,547,386 $36,502,339 $26,362,441

            ==========  =========== =========== ===========

</TABLE>








                                    Continued
                                      F-17
<PAGE>



              KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES

       SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION, Continued
                                December 31, 2000
                                      -----

Reconciliation of Real Estate and Accumulated Depreciation for each of the three
years in the period ended December 31, 2000:
<TABLE>
<CAPTION>

                                        2000            1999          1998
                                     -----------     -----------   -----------

       Real Estate
       -----------

<S>                                  <C>             <C>           <C>
    Balance at beginning of year     $35,510,732     $34,849,450   $41,807,070

    Acquisition and improvements         991,607         661,282     1,085,983

    Sale of property                         -                -     (8,043,603)
                                     -----------     -----------   -----------

    Balance at end of year           $36,502,339     $35,510,732    $34,849,450
                                     ===========     ===========   ===========



                                        2000            1999          1998
                                     -----------     -----------   -----------

       Accumulated Depreciation
       ------------------------

    Balance at beginning of year     $24,736,628     $23,263,961   $26,859,567

    Depreciation expense               1,625,813       1,472,667     1,697,258

    Sale of property                          -               -     (5,292,864)
                                     -----------     -----------   -----------
    Balance at end of year           $26,362,441     $24,736,628   $23,263,961
                                     ===========     ===========   ===========
</TABLE>

The Partnership  uses the cost basis for property  valuation for both income tax
and financial statement  purposes.  The aggregate cost of the Partnership's real
estate for federal income tax purposes at December 31, 2000 is  $36,507,288  and
the  aggregate  accumulated  depreciation  for  federal  income tax  purposes is
$29,885,169.







                                      F-18