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


                                    FORM 10-Q


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

                  For the quarterly period ended March 31, 1997

                         Commission file number 0-14438

              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


        CALIFORNIA                                              13-3239107
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)


                   411 West Putnam Avenue, Greenwich, CT 06830
                    (Address of principal executive offices)

                                 (203) 862-7000
              (Registrant's telephone number, including area code)

                                      None
              (Former name, former address and former fiscal year,
                         if changed since last report)

Indicate by check whether the registrant  (1) has filed all reports  required to
be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                           Yes   [ X ]       No   [   ]

================================================================================
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997

                                      INDEX

                                                                                


Part I. Financial Information:

Balance Sheets -- March 31, 1997 and December 31, 1996..........................

Statements of Operations -- Three Months Ended
    March 31, 1997 and 1996.....................................................

Statement of Partners' Equity -- Three Months Ended
    March 31, 1997..............................................................

Statements of Cash Flows -- Three Months Ended
    March 31, 1997 and 1996.....................................................

Notes to Financial Statements...................................................

Management's Discussion and Analysis of Financial
    Condition and Results of Operations.........................................

Part II. Other Information:

Legal Proceedings, Exhibits and Reports on Form 8-K.............................
<PAGE>
<TABLE>
<CAPTION>
                INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                             FORM 10-Q - March 31, 1997

                                   BALANCE SHEETS

                                                March 31, 1997   December 31, 1996
                                                --------------   -----------------
<S>                                               <C>                <C>                                                          
ASSETS

Real estate ..............................        $32,151,343        $32,154,253
Cash and cash equivalents ................          4,675,970          4,870,517
Other assets .............................          2,136,041          2,107,211
Receivables ..............................            120,476            158,204
                                                  -----------        -----------

                                                  $39,083,830        $39,290,185
                                                  ===========        ===========


LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued expenses ....        $ 1,258,204        $ 1,061,732
Due to affiliates ........................            279,773          1,164,121
Distributions payable ....................            315,797            252,638
                                                  -----------        -----------

                                                    1,853,774          2,478,491
                                                  -----------        -----------

Commitments and contingencies

PARTNERS' EQUITY:

  Limited partners' equity (400,010
    units issued and outstanding) ........         35,367,602         34,970,158
  General partners' equity ...............          1,862,454          1,841,536
                                                  -----------        -----------

                                                   37,230,056         36,811,694
                                                  -----------        -----------

                                                  $39,083,830        $39,290,185
                                                  ===========        ===========


                         See notes to financial statements 
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                  INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                               FORM 10-Q - March 31, 1997

                                STATEMENTS OF OPERATIONS


                                                            For the Three Months Ended
                                                                     March 31,
                                                            --------------------------
                                                               1997             1996
                                                            ----------       ---------- 
<S>                                                         <C>              <C>
Rental Revenue ......................................       $2,356,528       $2,413,390
                                                            ----------       ----------

Costs and Expenses:

     Operating expenses .............................          872,018          857,605
     Depreciation and amortization ..................          309,935          319,365
     Partnership management fee .....................          227,043          227,043
     Administrative expenses ........................          202,260          131,460
     Property management fee ........................           69,069           75,297
                                                            ----------       ----------

                                                             1,680,325        1,610,770
                                                            ----------       ----------

Income before interest and other income .............          676,203          802,620

     Interest income ................................           42,666           27,286

     Other income ...................................           15,290           14,450
                                                            ----------       ----------

Net income ..........................................       $  734,159       $  844,356
                                                            ==========       ==========

Net income attributable to:

     Limited partners ...............................       $  697,451       $  802,138

     General partners ...............................           36,708           42,218
                                                            ----------       ----------

Net income ..........................................       $  734,159       $  844,356
                                                            ==========       ==========

Net income per unit of limited
     partnership interest (400,010 units outstanding)       $     1.74       $     2.01
                                                            ==========       ==========


                           See notes to financial statements 
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                      INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                                   FORM 10-Q - March 31, 1997

                                 STATEMENT OF PARTNERS' EQUITY


                                                   General          Limited
                                                  Partners'        Partners'
                                                   Equity           Equity          Total
                                                ------------     ------------     ------------
<S>                                             <C>              <C>              <C>

Balance, January 1, 1997 ...................    $  1,841,536     $ 34,970,158     $ 36,811,694

Net income for the three
    months ended March 31, 1997 ............          36,708          697,451          734,159

Distributions as a return of capital for the
    three months ended March 31, 1997
    ($.75 per limited partnership unit) ....         (15,790)        (300,007)        (315,797)
                                                ------------     ------------     ------------

Balance, March 31, 1997 ....................    $  1,862,454     $ 35,367,602     $ 37,230,056
                                                ============     ============     ============



                               See notes to financial statements 
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - March 31, 1997

                             STATEMENTS OF CASH FLOWS

                                                      For The Three Months Ended
                                                               March 31,
                                                      ---------------------------
                                                           1997           1996
                                                      -----------     -----------
<S>                                                   <C>             <C>
Cash Flows From Operating Activities:

     Net income ..................................    $   734,159     $   844,356
     Adjustments to reconcile net income
     to net cash provided by operating activities:
           Depreciation and amortization .........        309,935         319,365
           Straight-line adjustment for stepped
           lease rentals .........................        (13,228)        (10,442)
     Changes in assets and liabilities:
           Accounts payable and accrued expenses .        196,472         182,102
           Receivables ...........................         37,728          55,889
           Due to affiliates .....................       (884,348)        (63,430)
           Other assets ..........................        (72,855)        (75,889)
                                                      -----------     -----------

     Net cash provided by operating activities ...        307,863       1,251,951
                                                      -----------     -----------

Cash Flows From Investing Activities:

     Improvements to real estate .................       (249,772)       (184,897)
                                                      -----------     -----------

Cash Flows From Financing Activities:

     Distributions to partners ...................       (252,638)       (252,638)
                                                      -----------     -----------

Increase (Decrease) In Cash And Cash Equivalents .       (194,547)        814,416

Cash And Cash Equivalents, Beginning of Year .....      4,870,517       2,450,943
                                                      -----------     -----------

Cash And Cash Equivalents, End of Quarter ........    $ 4,675,970     $ 3,265,359
                                                      ===========     ===========

                         See notes to financial statements 
</TABLE>
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

l.       GENERAL

         The accompanying financial statements,  notes and discussions should be
         read in conjunction  with the financial  statements,  related notes and
         discussions contained in the Partnership's annual report on Form 10-K/A
         for the year ended  December 31, 1996.  

         The financial  information  contained herein is unaudited;  however, in
         the opinion of management,  all adjustments  (consisting only of normal
         recurring  adjustments)  necessary  for a  fair  presentation  of  such
         financial information have been included.

2.       SIGNIFICANT ACCOUNTING POLICIES

         Impairment of Assets

         The Partnership  evaluates the recoverability of the net carrying value
         of its real estate and related assets at least annually, and more often
         if  circumstances  dictate.  If this review indicates that the carrying
         value of a property may not be recoverable,  the Partnership  estimates
         the future cash flows  expected to result from the use of the  property
         and  its  eventual  disposition,  generally  over a  five-year  holding
         period. In performing this review, management takes into account, among
         other things, the existing occupancy, the expected leasing prospects of
         the  property  and the  economic  situation  in the  region  where  the
         property is located.

         If the sum of the  expected  future cash flows,  undiscounted,  is less
         than the carrying amount of the property, the Partnership recognizes an
         impairment  loss,  and reduces the carrying  amount of the asset to its
         estimated fair value. Fair value is the amount at which the asset could
         be bought or sold in a current  transaction  between  willing  parties,
         that  is,  other  than in a  forced  or  liquidation  sale.  Management
         estimates fair value using discounted cash flows or market comparables,
         as most appropriate for each property. Independent certified appraisers
         are utilized to assist management, when warranted.
 
         Impairment  write-downs  recorded by the  Partnership do not affect the
         tax basis of the assets and are not  included in the  determination  of
         taxable income or loss.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

 2.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Impairment of Assets (continued)

         Because  the cash  flows used to  evaluate  the  recoverability  of the
         assets and their  fair  values  are based  upon  projections  of future
         economic  events  such  as  property  occupancy  rates,  rental  rates,
         operating cost inflation and market  capitalization  rates, the amounts
         ultimately  realized at disposition may differ  materially from the net
         carrying  values at the balance sheet dates.  The cash flows and market
         comparables  used in this process are based on good faith estimates and
         assumptions   developed  by   management.   Unanticipated   events  and
         circumstances  may  occur  and some  assumptions  may not  materialize;
         therefore,  actual results may vary materially from the estimates.  The
         Partnership  may in the future provide  additional  write-downs,  which
         could be material, if real estate markets or local economic  conditions
         change.

         Recently Issued Accounting Pronouncement

         The Financial  Accounting Standards Board issued Statement of Financial
         Accounting  Standards No. 128, "Earnings per Share" in February,  1997.
         This pronouncement  establishes  standards for computing and presenting
         earnings  per  share,  and is  effective  for  the  Partnerhsip's  1997
         year-end  financial  statements.   The  Partnership's   management  has
         determined that this standard will have no impact on the  Partnership's
         computation  or   presentation  of  net  income  per  unit  of  limited
         partnership interest.

         Certain  reclassifications  were  made  to  the  prior  year  financial
         statements in order to conform them to the current period presentation.

         Results of operations for the three months ended March 31, 1997 are not
         necessarily  indicative  of the results to be  expected  for the entire
         year.

 3.      CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

         The Managing General Partner of the Partnership, Resources High Equity,
         Inc.  is  a   wholly-owned   subsidiary  of  Presidio   Capital  Corp.,
         ("Presidio"). Presidio AGP Corp., which is a wholly-owned subsidiary of
         Presidio is the Associate  General Partner  (together with the Managing
         General  Partner,  the  "General  Partner").  The General  Partners and
         affiliates  of the  General  Partners  are also  engaged in  businesses
         related to the  acquisition  and operation of real estate.  Presidio is
         also the parent of other  corporations that are or may in the future be
         engaged in businesses that may be in competition  with the Partnership.
         Accordingly,  conflicts of interest may arise  between the  Partnership
         and such other businesses.  Wexford Management LLC ("Wexford") has been
         engaged to perform  administrative  services to Presidio and its direct
         and indirect subsidiaries as well as the Partnership.  During the three
         months  ended March 31, 1997,  reimbursable  expenses to Wexford by the
         Partnership amounted to $23,650.  Wexford is engaged to perform similar
         services for other similar entities that may be in competition with the
         Partnership.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

 3.      CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)

         The  Partnership  has a property  management  services  agreement  with
         Resources Supervisory  Management Corp. ("Resources  Supervisory"),  an
         affiliate  of  the  General  Partners,  to  perform  certain  functions
         relating to the  management  of the  properties of the  Partnership.  A
         portion  of the  property  management  fees were  paid to  unaffiliated
         management  companies  which are engaged for the purpose of  performing
         the management functions for certain properties. For the quarters ended
         March 31, 1997 and 1996, Resources  Supervisory was entitled to receive
         $69,069 and  $75,297,  respectively,  of which  $53,839 and $50,637 was
         paid to unaffiliated management companies, respectively.

         For the administration of the Partnership, the Managing General Partner
         is  entitled  to receive  reimbursement  of expenses up to a maximum of
         $150,000 per year (exclusive of the administrative expenses paid to
         Wexford ). For each of the quarters  ended March 31, 1997 and 1996, the
         Managing General Partner was entitled to receive $37,500.

         For  managing  the affairs of the  Partnership,  the  Managing  General
         Partner is entitled  to receive an annual  partnership  management  fee
         equal  to  1.05% of the  amount  of  original  gross  proceeds  paid or
         allocable to the acquisition of property by the  Partnership.  For each
         of the quarters  ended March 31, 1997 and 1996,  the  Managing  General
         Partner was entitled to receive $227,043.

         The  general  partners  are  allocated  5% of  the  net  income  of the
         Partnership,  which  amounted to $36,708  and $42,218 for the  quarters
         ended March 31, 1997 and 1996, respectively.  They are also entitled to
         receive 5% of distributions,  which amounted to $15,790 and $12,632 for
         the quarters ended March 31, 1997 and 1996, respectively.

         During the liquidation  stage of the Partnership,  the Managing General
         Partner or an affiliate may be entitled to receive certain fees,  which
         are  subordinated  to the limited  partners  receiving  their  original
         invested  capital  and  certain  specified  minimum  returns  on  their
         investment.

         From July 1996 through April 1997, Millenium Funding II Corp., a wholly
         owned indirect  subsidiary of Presidio,  purchased  19,951 units of the
         Partnership from various limited  partners.  These units represent less
         than  5%  of  the  outstanding   limited   partnership   units  of  the
         Partnership.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

4.       REAL ESTATE

         The following  table is a summary of the  Partnership's  real estate as
         of:
<TABLE>
<CAPTION>
                                                  March 31,        December 31,
                                                    1997              1996
                                               ------------        ------------
<S>                                            <C>                 <C>
Land ...................................       $ 11,056,966        $ 11,056,966
Building and improvements ..............         35,066,854          34,817,081
                                               ------------        ------------
                                                 46,123,820          45,874,047
Less: Accumulated depreciation .........        (13,972,477)        (13,719,794)
                                               ------------        ------------

                                               $ 32,151,343        $ 32,154,253
                                               ============        ============
</TABLE>
         No write-downs  were recorded for the three months ended March 31, 1997
         and 1996.

5.       DISTRIBUTIONS PAYABLE
<TABLE>
<CAPTION>
                                                         March 31,    December 31,
                                                           1997           1996
                                                         --------       --------
<S>                                                      <C>            <C>
Limited partners ($.75 and $.60 per unit) ........       $300,007       $240,006
General partners .................................         15,790         12,632
                                                         --------       --------

                                                         $315,797       $252,638
                                                         ========       ========
</TABLE>
         Such  distributions  were paid in the quarters  subsequent to March 31,
         1997 and December 31, 1996, respectively.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

6.       DUE TO AFFILIATES
<TABLE>
<CAPTION>
                                                           March 31,  December 31,
                                                             1997        1996
                                                         ----------    ----------
<S>                                                      <C>           <C>
Partnership management fee ..........................    $  227,043    $  227,044
Settlement and litigation cost reimbursement (Note 7)          --         824,510
Property management fee .............................        15,230        75,067
Non-accountable expense reimbursement ...............        37,500        37,500
                                                         ----------    ----------

                                                         $  279,773    $1,164,121
                                                         ==========    ==========
</TABLE>
         Such amounts were paid in the quarters subsequent to March 31, 1997 and
December 31, 1996, respectively.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

7.       COMMITMENTS AND CONTINGENCIES  

         On or about  May 11,  1993  High  Equity  Partners  L.P.  -  Series  86
         ("HEP-86"), an affiliated partnership,  was advised of the existence of
         an action (the  "California  Action")  in which a  complaint  (the "HEP
         Complaint") was filed in the Superior Court for the State of California
         for the County of Los  Angeles  (the  "Court") on behalf of a purported
         class  consisting  of all  of the  purchasers  of  limited  partnership
         interests in HEP-86. On April 7, 1994 the plaintiffs were granted leave
         to file an amended complaint (the "Amended Complaint").

         On  November  30,  1995,  after  the  Court  preliminarily  approved  a
         settlement of the California  Action but  ultimately  declined to grant
         final approval and after the Court granted  motions to intervene by the
         original  plaintiffs,  the original and intervening  plaintiffs filed a
         Consolidated  Class and Derivative Action Complaint ( the "Consolidated
         Complaint")  against the Administrative and Investment General Partners
         of  HEP-86,  the  managing  general  partner  of the  Partnership,  the
         managing general partner of HEP-88 and the indirect corporate parent of
         the General Partners.  The Consolidated Complaint alleges various state
         law  class  and  derivative  claims,  including  claims  for  breach of
         fiduciary duties;  breach of contract;  unfair and fraudulent  business
         practices under  California  Bus. & Prof. Code Sec. 17200;  negligence;
         dissolution,   accounting  and   receivership;   fraud;  and  negligent
         misrepresentation.  The  Consolidated  Complaint  alleges,  among other
         things,  that the general  partners  caused a waste of HEP  Partnership
         assets by collecting  management fees in lieu of pursuing a strategy to
         maximize the value of the  investments  owned by the limited  partners;
         that the general  partners  breached their duty of loyalty and due care
         to the  limited  partners  by  expropriating  management  fees from the
         partnerships  without  trying  to run  the  HEP  Partnerships  for  the
         purposes  for which they are  intended;  that the general  partners are
         acting  improperly to enrich  themselves  in their  position of control
         over the HEP Partnerships and that their actions prevent non-affiliated
         entities  from making and  completing  tender  offers to  purchase  HEP
         Partnership  Units;  that  by  refusing  to  seek  the  sale of the HEP
         Partnerships'  properties,  the general  partners have  diminished  the
         value of the limited partners' equity in the HEP Partnerships; that the
         general  partners  have taken a heavily  overvalued  partnership  asset
         management  fee;  and that  limited  partnership  units  were  sold and
         marketed through the use of false and misleading statements.

         On February 24, 1997,  after the Court again  approved a settlement  of
         the  California  Action but again  ultimately  declined  to grant final
         approval,  the  Court  recused  itself  from  considering  a motion  to
         intervene  and to file a new  complaint in  intervention  by one of the
         objectors  to  the  Revised  Settlement,  granted  the  request  of one
         plaintiffs' law firm to withdraw as class counsel and scheduled  future
         hearings on various matters.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997
                          NOTES TO FINANCIAL STATEMENTS

7.       COMMITMENTS AND CONTINGENCIES (CONTINUED)

         The Limited  Partnership  Agreement provides for indemnification of the
         General  Partners and their  affiliates in certain  circumstances.  The
         Partnership  has agreed to  reimburse  the General  Partners  for their
         actual costs  incurred in defending  this  litigation  and the costs of
         preparing settlement materials.  Through December 31, 1996, the General
         Partners had billed the Partnership a total of $824,510 for these costs
         which was paid in February 1997.

         The  Partnerships  and the General  Partners  believe  that each of the
         claims asserted in the Consolidated  Complaint are meritless and intend
         to  continue  to  vigorously  defend  the  California   Action.  It  is
         impossible  at this time to predict what the defense of the  California
         Action will cost, the Partnership's  financial  exposure as a result of
         the indemnification agreement discussed above, and whether the costs of
         defending could adversely affect the Managing General Partner's ability
         to perform its obligations to the Partnership.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

Working capital reserves are temporarily invested in short-term instruments and,
together with cash flow from  operations,  are expected to be sufficient to fund
future capital  improvements to the  Partnership's  properties.  As of March 31,
1997,  the  Partnership  had total  working  capital  reserves of  approximately
$2,975,000.  The Partnership intends to distribute to its partners less than all
of its future cash flow from operations in order to assure adequate reserves for
capital  improvements and capitalized lease procurement  costs. 

During  the  three  months  ended  March  31,  1997,  cash and cash  equivalents
decreased  $194,547 as a result of capital  expenditures  and  distributions  to
partners in excess of cash provided by  operations.  The  Partnership's  primary
source of funds is cash flow from the operation of its  properties,  principally
rents  received  from tenants,  which  amounted to $307,863 for the three months
ended March 31, 1997.  The  Partnership  used $249,772 for capital  expenditures
related to capital and tenant  improvements  to the  properties and $252,638 for
distributions to partners for the three months ended March 31, 1997.

The  Partnership  expects to continue to utilize a portion of its cash flow from
operations to pay for various capital and tenant  improvements to the properties
and  leasing   commissions.   Capital  and  tenant   improvements   and  leasing
commisssions  may  in  the  future  exceed  the  Partnership's  cash  flow  from
operations.  In that event, the Partnership  would utilize the remaining working
capital reserves or sell one or more properties.
<PAGE>

              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

The Partnership  experienced a decrease in net income for the three months ended
March 31, 1997  compared to the same period in the prior year due  primarily  to
slightly lower revenues at certain properties and higher administrative  epenses
in 1997.

Revenues  were lower at Southport  during the first  quarter of 1997 compared to
1996 due to lower  percentage  rent collected in 1997 as a result of lower sales
volume reported by one of the major tenants at that property.  This decrease was
partially  offset by higher  revenues at 568 Broadway for the three months ended
March 31,  1997  compared to 1996 due to higher  occupancy  rates in the current
period.

Costs and  expenses  increased  during the three  months  ended  March 31,  1997
compared  to the same  period  in 1996.  Operating  expenses,  depreciation  and
amortization,  the partnership asset management fee and the property  management
fees remained  relatively  consistent  for the three months ended March 31, 1997
compared  to the same  period  in 1996.  Administrative  expenses  for the three
months ended March 31, 1997 increased compared to the same period in 1996 due to
higher  legal and  accounting  fees  related to ongoing  litigation  and the HEP
settlement, as previously discussed.

Interest  income  increased due to higher cash balances  during the three months
ended March 31, 1997 compared to the same period in 1996.  Other  income,  which
consists of investor ownership  transfer fees,  remained  relatively  consistent
during the three month period  ended March 31, 1997  compared to the same period
in 1996 as there was no significant variance in the number of transfers.

Inflation  is not  expected  to  have a  material  impact  on the  Partnership's
operations or financial position.

Legal Proceedings

The  Partnership is a party to certain  litigation.  See Note 7 to the financial
statements for a description thereof.
<PAGE>
              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997

                          Part II. - Other Information

Item 1 -          Legal Proceedings

(a)               See   Management's   Discussion   and  Analysis  of  Financial
                  Condition  and Results of  Operations  and Notes to  Financial
                  Statements - Note 7 which is herein incorporated by reference.

Item 6 -          Exhibits and Reports on Form 8-K

(a)               Exhibits: There were no exhibits filed.

(b)               Reports on Form 8-K:
                  Current Report on Form 8-K dated January 31, 1997

<PAGE>


              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                           FORM 10-Q - March 31, 1997

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                           Integrated Resources High Equity
                                           Partners, Series 85,
                                           A California Limited Partnership




                                        By:      Resources High Equity, Inc.,
                                                 Managing General Partner




Dated:   May 20, 1997                   By:      /S/ Joseph M. Jacobs
                                                 --------------------
                                                 Joseph M. Jacobs
                                                 President
                                                 (Duly Authorized Officer)




Dated:   May 20, 1997                   By:      /S/ Jay L. Maymudes
                                                 -------------------
                                                 Jay L. Maymudes
                                                 Vice President, Secretary
                                                 and Treasurer
                                                 (Principal Financial and
                                                 Accounting Officer)