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        June 30, 1998
                                     -------------------------------------------


                                       OR

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


     For the transition period from ______________ to_____________
     Commission file number  0-12915
                            ---------



                        McNEIL REAL ESTATE FUND XIV, LTD.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



         California                                     94-2822299
--------------------------------------------------------------------------------
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                          Identification No.)




              13760 Noel Road, Suite 600, LB70, Dallas, Texas 75240
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)



Registrant's telephone number, including area code     (972) 448-5800
                                                   -----------------------------



Indicate  by check  mark  whether  the  registrant,  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during the  preceding  12 months and (2) has been  subject to such  filing
requirements for the past 90 days. Yes X No
                                      ---  ---
<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
------- --------------------

                        McNEIL REAL ESTATE FUND XIV, LTD.

                                 BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                             June 30,      December 31,
                                                                               1998            1997
                                                                           ------------    ------------
ASSETS
------

Real estate investments:
<S>                                                                        <C>             <C>         
   Land ................................................................   $  4,663,828    $  4,663,828
   Buildings and improvements ..........................................     36,888,803      36,220,158
                                                                           ------------    ------------
                                                                             41,552,631      40,883,986
   Less:  Accumulated depreciation .....................................    (21,557,013)    (20,632,796)
                                                                           ------------    ------------
                                                                             19,995,618      20,251,190

Asset held for sale, net ...............................................      1,987,110       1,932,910

Cash and cash equivalents ..............................................      1,246,909       1,292,615
Cash segregated for security deposits ..................................        393,499         431,148
Accounts receivable ....................................................        372,482         663,087
Prepaid expenses and other assets ......................................        140,014         141,281
Escrow deposits ........................................................        753,380         664,294
Deferred borrowing costs, net of accumulated
   amortization of $489,741 and $441,912 at
   June 30, 1998, and December 31, 1997,
   respectively ........................................................        901,251         949,080
                                                                           ------------    ------------

                                                                           $ 25,790,263    $ 26,325,605
                                                                           ============    ============

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
------------------------------------------

Mortgage notes payable, net ............................................   $ 23,681,727    $ 23,891,012
Accounts payable .......................................................         67,852          69,128
Accrued interest .......................................................        163,149         164,766
Accrued property taxes .................................................        221,021         101,200
Other accrued expenses .................................................         60,747          73,912
Payable to affiliates - General Partner ................................        493,278         211,757
Deferred gain on involuntary conversion ................................        180,386         346,114
Security deposits and deferred rental revenue ..........................        379,876         368,672
                                                                           ------------    ------------
                                                                             25,248,036      25,226,561
                                                                           ------------    ------------

Partners' equity (deficit):
   Limited  partners - 100,000  limited  partnership  units  authorized;         
     86,534 limited partnership units outstanding at June 30, 1998 and
     December 31, 1997 .................................................      1,475,741       1,763,445
   General Partner .....................................................       (933,514)       (664,401)
                                                                           ------------    ------------
                                                                                542,227       1,099,044
                                                                           ------------    ------------
                                                                           $ 25,790,263    $ 26,325,605
                                                                           ============    ============
</TABLE>

The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                       Three Months Ended         Six Months Ended
                                           June 30,                    June 30,
                                  --------------------------   -------------------------
                                      1998           1997          1998          1997
                                  -----------    -----------   -----------   -----------

Revenue:
<S>                               <C>            <C>           <C>           <C>        
   Rental revenue .............   $ 2,119,480    $ 2,236,551   $ 4,279,436   $ 4,663,282
   Interest ...................        17,282         63,945        36,941       102,099
   Gain on sale of real estate              -      2,208,359             -     2,208,359
   Gain on involuntary conver-
     sions ....................        15,366              -       204,641             -
                                  -----------    -----------   -----------   -----------
     Total revenue ............     2,152,128      4,508,855     4,521,018     6,973,740
                                  -----------    -----------   -----------   -----------

Expenses:
   Interest ...................       541,962        601,749     1,084,949     1,263,872
   Depreciation and
     amortization .............       467,626        468,657       924,217       937,314
   Property taxes .............       161,565        163,053       323,112       356,229
   Personnel expenses .........       214,104        218,827       470,298       495,773
   Utilities ..................       107,863        119,328       228,516       245,424
   Repair and maintenance .....       307,074        312,061       503,646       559,031
   Property management
     fees - affiliates ........       105,153        113,236       210,131       230,593
   Other property operating
     expenses .................       113,045        132,496       234,475       269,223
   General and administrative .       126,538         21,093       216,815        52,144
   General and administrative -
     affiliates ...............        57,428         61,577       110,423       122,728
                                  -----------    -----------   -----------   -----------
     Total expenses ...........     2,202,358      2,212,077     4,306,582     4,532,331
                                  -----------    -----------   -----------   -----------

Net income (loss) .............   $   (50,230)   $ 2,296,778   $   214,436   $ 2,441,409
                                  ===========    ===========   ===========   ===========

Net income (loss) allocated to
   limited partners ...........   $   (49,728)   $         -   $     2,144   $         -
Net income (loss) allocated to
   General Partner ............          (502)     2,296,778       212,292     2,441,409
                                  -----------    -----------   -----------   -----------

Net income (loss) .............   $   (50,230)   $ 2,296,778   $   214,436   $ 2,441,409
                                  ===========    ===========   ===========   ===========

Net income (loss) per limited
   partnership unit ...........   $      (.57)   $         -   $      2.45   $         -
                                  ===========    ===========   ===========   ===========

Distributions per limited
   partnership unit ...........   $         -    $         -   $      5.78   $         -
                                  ===========    ===========   ===========   ===========
</TABLE>


The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                                   (Unaudited)

                 For the Six Months Ended June 30, 1998 and 1997


<TABLE>
<CAPTION>
                                                                                                    Total
                                                                                                  Partners'
                                                     General                 Limited               Equity
                                                     Partner                 Partners             (Deficit)
                                                  --------------          -------------         --------------
<S>                                               <C>                     <C>                   <C>          
Balance at December 31, 1996..............        $  (3,166,815)          $   7,648,141         $   4,481,326

Net income................................            2,441,409                       -             2,441,409

Management Incentive Distribution.........             (316,051)                      -              (316,051)
                                                  -------------           -------------         -------------

Balance at June 30, 1997..................        $  (1,041,457)          $   7,648,141         $   6,606,684
                                                  =============           =============         =============


Balance at December 31, 1997..............        $    (664,401)          $   1,763,445         $   1,099,044

Net income................................                2,144                 212,292               214,436

Management Incentive Distribution.........             (271,257)                      -              (271,257)

Distributions to limited partners.........                    -                (499,996)             (499,996)
                                                  -------------           -------------         -------------

Balance at June 30, 1998..................        $    (933,514)          $   1,475,741         $     542,227
                                                  =============           =============         =============

</TABLE>



The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.

<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                Increase (Decrease) in Cash and Cash Equivalents

<TABLE>
<CAPTION>
                                                               Six Months Ended
                                                                    June 30,
                                                          ---------------------------
                                                              1998           1997
                                                          ------------   ------------
Cash flows from operating activities:
<S>                                                       <C>            <C>        
   Cash received from tenants .........................   $ 4,340,548    $ 4,588,033
   Cash paid to suppliers .............................    (1,656,631)    (1,661,084)
   Cash paid to affiliates ............................      (310,290)      (382,710)
   Interest received ..................................        36,941        102,099
   Interest paid ......................................    (1,013,611)    (1,178,054)
   Property taxes paid and escrowed ...................      (292,339)      (308,466)
                                                           ----------    -----------
Net cash provided by operating activities .............     1,104,618      1,159,818
                                                           ----------    -----------

Cash flows from investing activities:
   Insurance proceeds from involuntary conversions.....       306,928              -
   Proceeds from sale of real estate ..................             -      6,424,696
   Additions to real estate investments ...............      (722,845)      (210,585)
                                                          -----------    -----------
Net cash provided by (used in) investing activities....      (415,917)     6,214,111
                                                          -----------    -----------

Cash flows from financing activities:
   Principal payments on mortgage notes payable .......      (234,411)      (289,609)
   Retirement of mortgage note payable ................             -     (2,231,440)
   Management Incentive Distribution paid .............             -     (1,613,095)
   Distributions to limited partners ..................      (499,996)             -
                                                          -----------    -----------
Net cash used in financing activities .................      (734,407)    (4,134,144)
                                                          -----------    -----------

Net increase (decrease) in cash and cash equivalents...       (45,706)     3,239,785

Cash and cash equivalents at beginning of
   period .............................................     1,292,615      1,903,902
                                                          -----------    -----------

Cash and cash equivalents at end of period ............   $ 1,246,909    $ 5,143,687
                                                          ===========    ===========
</TABLE>




The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.

<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

              Reconciliation of Net Income to Net Cash Provided by
                              Operating Activities

<TABLE>
<CAPTION>

                                                                Six Months Ended
                                                                    June 30,
                                                           --------------------------
                                                               1998          1997
                                                           -----------    -----------
<S>                                                        <C>            <C>        
Net income .............................................   $   214,436    $ 2,441,409
                                                           -----------    -----------

Adjustments to reconcile net income to net cash provided
   by operating activities:
   Depreciation and amortization .......................       924,217        937,314
   Amortization of deferred borrowing costs ............        47,829         47,828
   Amortization of discounts on mortgage
     notes payable .....................................        25,126         56,788
   Gain on involuntary conversions .....................      (204,641)             -
   Gain on sale of real estate .........................             -     (2,208,359)
   Changes in assets and liabilities:
     Cash segregated for security deposits .............        37,649        (17,338)
     Accounts receivable ...............................        22,590        (54,024)
     Prepaid expenses and other assets .................         1,267         19,872
     Escrow deposits ...................................       (89,086)      (109,956)
     Accounts payable ..................................        (1,276)       (34,115)
     Accrued interest ..................................        (1,617)       (18,798)
     Accrued property taxes ............................       119,821        145,998
     Other accrued expenses ............................       (13,165)       (19,553)
     Payable to affiliates - General Partner ...........        10,264        (29,389)
     Security deposits and deferred rental revenue .....        11,204          2,141
                                                           -----------    -----------
       Total adjustments ...............................       890,182     (1,281,591)
                                                           -----------    -----------

Net cash provided by operating activities ..............   $ 1,104,618    $ 1,159,818
                                                           ===========    ===========


</TABLE>



The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                          Notes to Financial Statements
                                   (Unaudited)

                                  June 30, 1998


NOTE 1.
-------

McNeil Real Estate Fund XIV, Ltd. (the  "Partnership") is a limited  partnership
organized  under the laws of the State of California to invest in real property.
The general  partner of the Partnership is McNeil  Partners,  L.P. (the "General
Partner"), a Delaware limited partnership, an affiliate of Robert A. McNeil. The
Partnership  is  governed  by an  agreement  of  limited  partnership  ("Amended
Partnership Agreement") that was adopted September 20, 1991. The principal place
of business  for the  Partnership  and the  General  Partner is 13760 Noel Road,
Suite 600, LB70, Dallas, Texas 75240.

In the opinion of management,  the financial  statements reflect all adjustments
necessary for a fair  presentation of the Partnership's  financial  position and
results  of  operations.  All  adjustments  were of a normal  recurring  nature.
However,  the results of  operations  for the six months ended June 30, 1998 are
not  necessarily  indicative  of the results to be expected  for the year ending
December 31, 1998.

NOTE 2.
-------

The  financial  statements  should  be read in  conjunction  with the  financial
statements  contained in the  Partnership's  Annual  Report on Form 10-K for the
year  ended  December  31,  1997,  and the  notes  thereto,  as  filed  with the
Securities and Exchange  Commission,  which is available upon request by writing
to McNeil Real Estate Fund XIV, Ltd., c/o McNeil Real Estate  Management,  Inc.,
Investor Services, 13760 Noel Road, Suite 600, LB70, Dallas, Texas 75240.


NOTE 3.
-------

The  Partnership  pays property  management fees equal to 5% of the gross rental
receipts of the Partnership's properties to McNeil Real Estate Management,  Inc.
("McREMI"),  an  affiliate  of  the  General  Partner,  for  providing  property
management services for the Partnership's  residential and commercial properties
and leasing services for its residential  properties.  McREMI may also choose to
provide leasing services for the  Partnership's  commercial  property,  in which
case McREMI will receive property  management fees from the commercial  property
equal to 3% of the  property's  gross rental  receipts plus leasing  commissions
based on the  prevailing  market rate for such  services  where the  property is
located.

The  Partnership  reimburses  McREMI  for  its  costs,  including  overhead,  of
administering the Partnership's affairs.





<PAGE>
Under terms of the Amended  Partnership  Agreement,  the Partnership is paying a
Management  Incentive  Distribution  ("MID") to the General Partner. The maximum
MID is  calculated  as 1% of the tangible  asset value of the  Partnership.  The
maximum MID  percentage  decreases  subsequent to 1999.  Tangible asset value is
determined  by using the  greater  of (i) an amount  calculated  by  applying  a
capitalization  rate  of 9% to the  annualized  net  operating  income  of  each
property or (ii) a value of $10,000 per apartment unit for residential  property
and $50 per gross square foot for commercial  property to arrive at the property
tangible  asset value.  The property  tangible  asset value is then added to the
book value of all other assets excluding intangible items.

MID will be paid to the extent of the lesser of the  Partnership's  excess  cash
flow,  as  defined,  or net  operating  income,  as  defined  (the  "Entitlement
Amount"),  and may be paid (i) in cash, unless there is insufficient cash to pay
the  distribution  in which event any unpaid  portion not taken in Units will be
deferred and is payable,  without interest, from the first available cash and/or
(ii) in Units.  A maximum of 50% of the MID may be paid in Units.  The number of
Units  issued in payment  of the MID is based on the  greater of $50 per Unit or
the net tangible asset value, as defined, per Unit.

Any  amount  of the MID that is paid to the  General  Partner  in Units  will be
treated as if cash is distributed to the General Partner and is then contributed
to the Partnership by the General Partner. The MID represents a return of equity
to the General Partner for increasing cash flow, as defined,  and accordingly is
treated as a distribution.

Compensation,  reimbursements  and  distributions  paid  to or  accrued  for the
benefit of the General Partner and its affiliates are as follows:

                                                       Six Months Ended
                                                           June 30,
                                                      -------------------
                                                        1998       1997
                                                      --------   --------

Property management fees - affiliates .............   $210,131   $230,593
Charged to general and administrative - affiliates:
  Partnership administration ......................    110,423    122,728
                                                      --------   --------

                                                      $320,554   $353,321
                                                      ========   ========

Charged to General Partner's deficit:
  Management Incentive Distribution ...............   $271,257   $316,051
                                                      ========   ========

NOTE 4.
-------

On July 18,  1997, a fire caused  $49,498 of damage to two units of  Embarcadero
Club Apartments. In February 1998, the Partnership received $39,498 of insurance
reimbursements  to cover the repair and  restorations  costs to Embarcadero Club
Apartments.  The excess of the insurance proceeds received over the basis of the
property  damaged  was  recorded  as a  $17,998  deferred  gain  on  involuntary
conversion on the  Partnership's  December 31, 1997 Balance  Sheet.  The $17,998
gain on involuntary  conversion was recognized in the first quarter of 1998 when
the Partnership received the insurance proceeds.

<PAGE>
On November 14, 1997,  a fire caused  approximately  $535,000 of damage to eight
units of Thunder Hollow Apartments.  The Partnership  expects to receive a total
of approximately  $525,000 of insurance  reimbursements  to cover the repair and
restoration  costs  at  Thunder  Hollow  Apartments.  As of June 30,  1998,  the
Partnership had received $267,430 of insurance reimbursements. The excess of the
expected  insurance  reimbursements  over the basis of the property  damaged was
recorded  as a deferred  gain on  involuntary  conversion  on the  Partnership's
December 31, 1997 Balance Sheet. As a result of the insurance  payments received
so far in 1998,  $186,643 of the deferred gain was  recognized  during the first
two quarters of 1998. The remaining deferred gain of $180,386 will be recognized
when the Partnership receives the rest of the insurance  reimbursements from its
insurance carrier.

NOTE 5.
-------

On April 8, 1997, the  Partnership  sold Country Hills Plaza to an  unaffiliated
purchaser for a cash sales price of $6,610,000.  Cash proceeds from the sale, as
well as the gain on sale are detailed below.

<TABLE>
<CAPTION>
                                                                     Gain on Sale          Cash Proceeds
                                                                     --------------        -------------
     <S>                                                             <C>                    <C>       
     Cash sales price.......................................         $   6,610,000          $6,610,000

     Selling costs..........................................              (185,304)           (185,304)
     Mortgage discount written off..........................              (397,561)
     Straight-line rent receivables written off.............               (26,828)
     Basis of real estate sold..............................            (3,791,948)
                                                                     -------------

     Gain on sale of real estate............................         $   2,208,359
                                                                     =============          ----------

     Proceeds from sale of real estate......................                                 6,424,696
     Retirement of mortgage note payable....................                                (2,231,440)
                                                                                            ----------

     Net cash proceeds......................................                                $4,193,256
                                                                                            ==========
</TABLE>
 
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
-------  ---------------------------------------------------------------
         RESULTS OF OPERATIONS
         ---------------------

The  Partnership  was formed to  acquire,  operate and  ultimately  dispose of a
portfolio of income-producing real properties. At June 30, 1998, the Partnership
owned four  apartment  properties  and one retail  shopping  center.  All of the
Partnership's properties are subject to mortgage notes.






<PAGE>
On October 1, 1996,  the  Partnership  placed its three  commercial  properties,
County Hills Plaza, Midvale Plaza and Redwood Plaza, on the market for sale. The
Partnership  sold  Country  Hills Plaza and  Midvale  Plaza on April 8, 1997 and
September 24, 1997,  respectively.  The Partnership distributed the net proceeds
from the sale of these two properties to the limited  partners in 1997.  Redwood
Plaza, the  Partnership's  sole remaining  commercial  property,  remains on the
market for sale.

RESULTS OF OPERATIONS
---------------------

The  Partnership  reported net income of $214,436 for the six month period ended
June 30,  1998.  For the three  months  ended  June 30,  1998,  the  Partnership
incurred a loss of $50,230.  The  Partnership  reported net income of $2,441,409
and $2,296,778 for the same periods of 1997.  However,  reported income for 1998
and 1997 are not  comparable  because net income for 1997 includes a gain on the
sale of Country Hills Plaza,  the results from operations at Country Hills until
April 8, 1997,  and results from  operations  at Midvale Plaza which was sold on
September 24, 1997. Additionally, net income for 1998 includes $204,641 of gains
from involuntary  conversions.  If the effects of the foregoing transactions are
eliminated from the analysis, the Partnership reported net income of $10,638 and
$61,514 for the six month periods ended June 30, 1998 and 1997, respectively.

Revenues:

Rental revenue decreased 5.2% and 8.2% for the three month and six month periods
ended June 30,  1998 as  compared to the same  periods of 1997.  However,  after
eliminating  the effects of rental  revenues at Country  Hills Plaza and Midvale
Plaza,  which were sold during  1997,  rental  revenue at the  remainder  of the
Partnership's  properties  increased  $133,298 or 3.2% for the six month  period
ended June 30, 1998 as compared to the same period of 1997.

Rental  revenue  increased  at  three  of  the  Partnership's  four  residential
properties.  Increased  rental rates at Embarcadero  Club Apartments and Thunder
Hollow   Apartments  led  to  a  5.7%  and  3.9%  increase  in  rental  revenue,
respectively.  Rental  revenue at Windrock  Apartments  increased  5.8% due to a
decrease in vacancy  and other  rental  losses.  Tanglewood  Village  Apartments
reported  a 1.6%  decrease  in rental  revenue.  The  property  reported a small
increase in rental  rates that was  exceeded by an increase in vacancy and other
rental losses. The Partnership's  sole remaining  commercial  property,  Redwood
Plaza,  reported rental revenue  decreased 9.1%.  Rental rates were unchanged at
the property,  but, expense  recoveries from tenants and the occupancy rate both
decreased.

The Partnership  recognized  gains of $17,998 and $186,643  relating to fires at
Embarcadero  Club Apartments and Thunder Hollow  Apartments,  respectively.  The
gains are the result of  insurance  proceeds  received in excess of the basis of
the property  damaged by the fires. The Partnership will recognize an additional
gain of  $180,386  relating  to the  Thunder  Hollow  fire when the  Partnership
receives additional insurance reimbursements from its insurance carrier. No such
gains were recognized during the first six months of 1997.

Interest  revenue  decreased 64% for the first six months of 1998 as compared to
the first six months of 1997 because of decreased  balances of Partnership  cash
reserves invested in interest-bearing accounts.




<PAGE>
Expenses:

Partnership  expenses  decreased 0.4% and 5.0% for the three month and six month
periods  ended June 30, 1998 as compared to the same  periods of 1997.  However,
after eliminating the effects of expenses  pertaining to Country Hills Plaza and
Midvale  Plaza,  which were sold during 1997,  expenses at the  remainder of the
Partnership's  properties  increased  $119,248 or 2.9% for the six month  period
ended June 30,  1998 as  compared  to the same  period of 1997.  Expenses in all
categories  were comparable to the  year-earlier  figures except for general and
administrative   expenses  and  general  and  administrative  expenses  paid  to
affiliates.

General and administrative  expenses increased $105,445 and $164,671 to $126,538
and  $216,815  for the three month and six month  periods  ended June 30,  1998,
respectively,  as  compared  to the same  periods  of  1997.  The  increase  was
attributable to costs incurred to explore  alternatives to maximize the value of
the Partnership (see Liquidity and Capital Resources).

General and administrative  expenses paid to affiliates decreased 6.7% and 10.0%
for the three month and six month periods ended June 30, 1998, respectively,  as
compared to the same periods of 1997. The level of administrative reimbursements
paid to  affiliates  is  partly a  function  of the  number  of  properties  the
Partnership  owns.  These  expenses  decreased  due to the sale of Country Hills
Plaza and  Midvale  Plaza  during  the  course of 1997.  Costs  associated  with
investor relations  services were charged to general and  administrative  during
1997.  Such services,  beginning in 1998, are now provided by an affiliate,  and
the related increase in general and  administrative  expenses paid to affiliates
partially  offset  the  decrease  in  expenses  due to  the  reduced  number  of
properties under management.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Cash flow from operations  decreased $55,200 or 4.8% for the first six months of
1998 as compared to the same period of 1997.  Increased  operating  cash flow at
the Partnership's remaining properties largely offset the loss of operating cash
flow due to the 1997 sales of Country Hills Plaza and Midvale Plaza.

The Partnership  invested $722,845 in capital  improvements during the first six
months of 1998. Most of the capital  improvements related to restoration work at
Embarcadero  Club Apartments and Thunder Hollow  Apartments  resulting from fire
damage at the two properties.  Insurance  proceeds  received and anticipated are
expected to cover all restoration  costs except a standard  deductible.  Besides
the  restoration   work  at  Embarcadero  Club  Apartments  and  Thunder  Hollow
Apartments,  the  Partnership  has  budgeted  a total  of  $625,000  of  capital
improvements to be completed during 1998.

The  Partnership has not yet made any MID payments to the General Partner during
1998. On March 30, 1998, the Partnership distributed $499,996 ($5.78 per limited
partnership unit) to the limited partners. The distribution was funded from cash
reserves of the Partnership.








<PAGE>
Short-term liquidity:

The Partnership expended  considerable  resources over the past several years to
restore its  properties to good operating  condition.  These  expenditures  were
necessary  to  maintain  the  competitive  position of the  Partnership's  aging
properties  in each of their  markets.  The  capital  improvements  enabled  the
Partnership  to increase  its rental  revenues  and reduce its  operating  costs
beyond what would have otherwise been possible.  For 1998, the  Partnership  has
budgeted $625,000 of capital  improvements to its real estate  investments.  The
$625,000  budget  does not  include  restoration  work  related  to fire  damage
discussed  above.  Budgeted  capital  improvements  for 1998 will be funded from
property operations.

At June 30, 1998, the Partnership  held cash and cash equivalents of $1,246,909.
The General Partner considers this level of cash reserves to be adequate to meet
the  Partnership's  operating  needs.  The General  Partner resumed MID payments
during 1996, and anticipates additional MID payments will be made in 1998 if the
Partnership's  properties continue to perform as projected.  The General Partner
believes that anticipated  operating results for 1998 will be sufficient to fund
the  Partnership's  budgeted  capital  improvements  for 1998  and to repay  the
current portion of the Partnership's mortgage notes.

The Partnership's remaining commercial property, Redwood Plaza, is on the market
for sale.  Although the General  Partner  expects to  successfully  sell Redwood
Plaza,  there is no guarantee  that the  Partnership  will be able to conclude a
sale of Redwood Plaza for an amount  sufficient  to retire the related  mortgage
note and provide cash proceeds to the Partnership.  The Partnership  anticipates
that proceeds  from the sale of Redwood  Plaza,  after  repayment of the related
mortgage note, will be distributed to the limited partners.

Long-term liquidity:

For the long-term,  property operations will remain the primary source of funds.
In this regard,  the General Partner expects that the capital  improvements made
by the  Partnership  over the past few years will yield  improved cash flow from
property   operations  in  the  future.  If  the  Partnership's   cash  position
deteriorates,  the  General  Partner  may elect to defer  certain of the capital
improvements,   except   where   improvements   are  expected  to  increase  the
competitiveness or marketability of the Partnership's properties.

As   previously   announced,    the   Partnership   has   retained   PaineWebber
("PaineWebber"),  Incorporated  as its  exclusive  financial  advisor to explore
alternatives  to  maximize  the  value  of the  Partnership  including,  without
limitation,  a  transaction  in  which  limited  partnership  interests  in  the
Partnership are converted into cash. The Partnership,  through PaineWebber,  has
provided  financial and other information to interested parties and is currently
conducting  discussions  with one such party in an attempt to reach a definitive
agreement  with respect to a sale  transaction.  It is possible that the General
Partner  and its  affiliates  will  receive  non-cash  consideration  for  their
ownership  interests in connection  with any such  transaction.  There can be no
assurance that any such agreement will be reached nor the terms thereof.

None of the  Partnership's  remaining  mortgage notes mature before the expected
dissolution  of the  Partnership.  


<PAGE>
Income Allocations and Distributions:

Terms of the Amended Partnership Agreement specify that net losses for financial
reporting  purposes  are  allocated  99% to the limited  partners  and 1% to the
General Partner. Net income for financial reporting purposes is allocated to the
General Partner in an amount equal to the greater of (a) 1% of net income or (b)
the  cumulative  amount  of the MID paid  for  which no  income  allocation  has
previously  been made;  any  remaining  net income is  allocated  to the limited
partners. Therefore, for the six months ended June 30, 1998 and 1997, net income
of $2,144 and $2,441,409 was allocated to the General Partner, respectively. For
the period  ended June 30,  1998,  net income of $212,292  was  allocated to the
limited  partners.  No income was allocated to the limited  partners for the six
months ended June 30, 1997.

On March 30, 1998, the Partnership distributed $499,996 to the limited partners.
The General  Partner  will  continue to monitor  the cash  reserves  and working
capital  needs of the  Partnership  to  determine  when cash flows will  support
additional distributions to the limited partners.

The  Partnership  has not yet  paid MID to the  General  Partner  in  1998.  The
Partnership  anticipates  making MID payments  during 1998 if the  Partnership's
properties continue to perform as projected.

Forward-Looking Information:

Within this document,  certain  statements are made as to the expected occupancy
trends,  financial  condition,  results  of  operations,  and cash  flows of the
Partnership  for  periods  after  June 30,  1998.  All of these  statements  are
forward-looking  statements  made pursuant to the safe harbor  provisions of the
Private  Securities  Litigation  Reform Act of 1995.  These  statements  are not
historical  and  involve  risks  and  uncertainties.  The  Partnership's  actual
occupancy trends, financial condition, results of operations, and cash flows for
future  periods may differ  materially  due to several  factors.  These  factors
include,  but are not limited to, the  Partnership's  ability to control  costs,
make necessary  capital  improvements,  negotiate  sales or  refinancings of its
properties, and respond to changing economic and competitive factors.

Other Information:

Management  has begun to review its  information  technology  infrastructure  to
identify any systems that could be affected by the year 2000  problem.  The year
2000 problem is the result of computer  programs  being written using two digits
rather  than  four to  define  the  applicable  year.  Any  programs  that  have
time-sensitive  software may recognize a date using "00" as the year 1900 rather
than  the  year  2000.   This  could   result  in  major   systems   failure  or
miscalculations.  The information  systems used by the Partnership for financial
reporting and  significant  accounting  functions  were made year 2000 compliant
during  recent  systems  conversions.  The  Partnership  is in  the  process  of
evaluating the computer systems at the various properties.  The Partnership also
intends to communicate  with  suppliers,  financial  institutions  and others to
coordinate  year 2000 issues.  Management  believes that the  remediation of any
outstanding  year 2000  conversion  issues  will not have a material  or adverse
effect on the Partnership's operations.





<PAGE>
                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
-------  -----------------

James F.  Schofield,  Gerald C. Gillett,  Donna S. Gillett,  Jeffrey  Homburger,
Elizabeth Jung,  Robert Lewis, and Warren Heller et al. v. McNeil Partners L.P.,
McNeil Investors,  Inc., McNeil Real Estate Management,  Inc., Robert A. McNeil,
Carole J. McNeil,  McNeil Pacific  Investors Fund 1972, Ltd., McNeil Real Estate
Fund IX,  Ltd.,  McNeil Real  Estate  Fund X, Ltd.,  McNeil Real Estate Fund XI,
Ltd.,  McNeil  Real Estate Fund XII,  Ltd.,  McNeil Real Estate Fund XIV,  Ltd.,
McNeil Real Estate Fund XV, Ltd.,  McNeil Real Estate Fund XX, L.P., McNeil Real
Estate Fund XXI, L.P.,  McNeil Real Estate Fund XXII,  L.P.,  McNeil Real Estate
Fund XXIV,  L.P.,  McNeil Real Estate  Fund XXV,  L.P.,  McNeil Real Estate Fund
XXVI, L.P., and McNeil Real Estate Fund XXVII,  L.P., et al. - Superior Court of
the State of California for the County of Los Angeles,  Case No. BC133799 (Class
and Derivative Action Complaint).

The action involves  purported  class and derivative  actions brought by limited
partners of each of the fourteen limited partnerships that were named as nominal
defendants as listed above (the  "Partnerships").  Plaintiffs allege that McNeil
Investors, Inc., its affiliate McNeil Real Estate Management,  Inc. and three of
their senior officers and/or directors (collectively, the "Defendants") breached
their  fiduciary  duties and certain  obligations  under the respective  Amended
Partnership  Agreement.  Plaintiffs  allege that  Defendants  have rendered such
Units highly illiquid and  artificially  depressed the prices that are available
for Units on the resale market.  Plaintiffs also allege that Defendants  engaged
in a course of conduct to prevent the  acquisition  of Units by an  affiliate of
Carl  Icahn  by  disseminating  purportedly  false,  misleading  and  inadequate
information.  Plaintiffs  further allege that Defendants  acted to advance their
own personal  interests at the expense of the Partnerships'  public unit holders
by failing to sell Partnership  properties and failing to make  distributions to
unitholders.

On December 16, 1996, the Plaintiffs filed a consolidated and amended complaint.
Plaintiffs  are suing for breach of  fiduciary  duty,  breach of contract and an
accounting,  alleging,  among other things, that the management fees paid to the
McNeil affiliates over the last six years are excessive,  that these fees should
be reduced retroactively and that the respective Amended Partnership  Agreements
governing the Partnerships are invalid.

Defendants  filed a demurrer to the  consolidated  and amended  complaint  and a
motion to strike on February 14, 1997,  seeking to dismiss the  consolidated and
amended complaint in all respects.  A hearing on Defendant's demurrer and motion
to strike  was held on May 5,  1997.  The Court  granted  Defendants'  demurrer,
dismissing  the  consolidated  and  amended  complaint  with leave to amend.  On
October  31,  1997,  the  Plaintiffs  filed a second  consolidated  and  amended
complaint.  The case has  been  stayed  pending  settlement  discussions.  While
actively working toward a final resolution, there can be no assurances regarding
settlement.
<PAGE>


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
-------  --------------------------------

(a)         Exhibits.

            Exhibit
            Number               Description
            -------              ------------

            4.                   Amended and Restated Limited Partnership Agree-
                                 ment dated September 20, 1991. (1)

            11.                  Statement regarding computation of net loss per
                                 limited  partnership unit: net loss per limited
                                 partnership  unit is computed  by dividing  net
                                 loss  allocated to the limited  partners by the
                                 number    of    limited    partnership    units
                                 outstanding.  Per  unit  information  has  been
                                 computed  based on 86,534  limited  partnership
                                 units outstanding in 1998 and 1997.

            27.                  Financial  Data  Schedule for the quarter ended
                                 June 30, 1998.

      (1)   Incorporated  by reference to the Annual  Report of  Registrant,  on
            Form 10-K for the period ended  December 31, 1991, as filed on March
            30, 1992.

(b)      Reports on Form 8-K.  There  were  no  reports on Form 8-K filed during
         the quarter ended June 30, 1998.



<PAGE>



                        McNEIL REAL ESTATE FUND XIV, LTD.

                                   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:



                               McNEIL REAL ESTATE FUND XIV, Ltd.

                               By:  McNeil Partners, L.P., General Partner

                                    By: McNeil Investors, Inc., General Partner





August 14, 1998                     By: /s/  Ron K. Taylor
---------------                        -----------------------------------------
Date                                    Ron K. Taylor
                                        President and Director of McNeil 
                                         Investors, Inc.
                                        (Principal Financial Officer)




August 14, 1998                     By: /s/  Brandon K. Flaming
---------------                        -----------------------------------------
Date                                    Brandon K. Flaming
                                        Vice President of McNeil Investors, Inc.
                                        (Principal Accounting Officer)