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, 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>
                                                                           March 31,         December 31,
                                                                             1998                1997
                                                                       ---------------     ---------------
ASSETS
------

Real estate investments:
<S>                                                                    <C>                 <C>            
   Land.....................................................           $     4,663,828     $     4,663,828
   Buildings and improvements...............................                36,539,126          36,220,158
                                                                        --------------      --------------
                                                                            41,202,954          40,883,986
   Less:  Accumulated depreciation..........................               (21,089,387)        (20,632,796)
                                                                        --------------      --------------
                                                                            20,113,567          20,251,190

Asset held for sale, net....................................                 1,935,110           1,932,910

Cash and cash equivalents...................................                 1,225,152           1,292,615
Cash segregated for security deposits.......................                   461,202             431,148
Accounts receivable.........................................                   366,236             663,087
Prepaid expenses and other assets...........................                   138,381             141,281
Escrow deposits.............................................                   718,986             664,294
Deferred borrowing costs, net of accumulated
   amortization of $465,827 and $441,912 at
   March 31, 1998, and December 31, 1997,
   respectively.............................................                   925,165             949,080
                                                                        --------------      --------------

                                                                       $    25,883,799     $    26,325,605
                                                                        ==============      ==============

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

Mortgage notes payable, net.................................           $    23,787,578     $    23,891,012
Accounts payable............................................                    68,367              69,128
Accrued interest............................................                   163,966             164,766
Accrued property taxes......................................                   138,474             101,200
Other accrued expenses......................................                    57,052              73,912
Payable to affiliates - General Partner.....................                   405,830             211,757
Deferred gain on involuntary conversion.....................                   156,839             346,114
Security deposits and deferred rental revenue...............                   383,189             368,672
                                                                        --------------      --------------
                                                                            25,161,295          25,226,561
                                                                        --------------      --------------

Partners' equity (deficit):
   Limited  partners - 100,000  limited  partnership  units
     authorized;  86,534 limited partnership units out-
     standing at March 31, 1998 and December 31, 1997.......                 1,525,468           1,763,445
   General Partner..........................................                  (802,964)           (664,401)
                                                                        --------------      --------------
                                                                               722,504           1,099,044
                                                                        --------------      --------------

                                                                       $    25,883,799     $    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
                                                                                    March 31,
                                                                       -----------------------------------
                                                                            1998                 1997
                                                                       ---------------     ---------------
Revenue:
<S>                                                                    <C>                 <C>            
   Rental revenue...........................................           $     2,159,956     $     2,426,731
   Interest.................................................                    19,659              38,154
   Gains on involuntary conversions.........................                   189,275                   -
                                                                        --------------      --------------
     Total revenues.........................................                 2,368,890           2,464,885
                                                                        --------------      --------------

Expenses:
   Interest.................................................                   542,987             662,123
   Depreciation and amortization............................                   456,591             468,657
   Property taxes...........................................                   161,547             193,176
   Personnel expenses.......................................                   256,194             276,946
   Utilities................................................                   120,653             126,096
   Repair and maintenance...................................                   196,572             246,970
   Property management fees - affiliates....................                   104,978             117,357
   Other property operating expenses........................                   121,430             136,727
   General and administrative...............................                    90,277              31,051
   General and administrative - affiliates..................                    52,995              61,151
                                                                        --------------      --------------
     Total expenses.........................................                 2,104,224           2,320,254
                                                                        --------------      --------------

Net income..................................................           $       264,666     $       144,631
                                                                        ==============      ==============

Net income allocated to limited partners....................           $       262,019     $             -
Net income allocated to General Partner.....................                     2,647             144,631
                                                                        --------------      --------------

Net income..................................................           $       264,666     $       144,631
                                                                        ==============      ==============

Net income per limited partnership unit.....................           $          3.03     $             -
                                                                        ==============      ==============

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 Three Months Ended March 31, 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................................              144,631                       -               144,631

Management Incentive Distribution.........             (158,023)                      -              (158,023)
                                                  -------------           -------------         -------------

Balance at March 31, 1997.................       $   (3,180,207)         $    7,648,141        $    4,467,934
                                                  =============           =============         =============


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

Net income................................                2,647                 262,019               264,666

Management Incentive Distribution.........             (141,210)                      -              (141,210)

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

Balance at March 31, 1998.................       $     (802,964)         $    1,525,468        $      722,504
                                                  =============           =============         =============


</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>
                                                                                Three Months Ended
                                                                                    March 31,
                                                                       ------------------------------------
                                                                            1998                 1997
                                                                       ----------------    ----------------
Cash flows from operating activities:
<S>                                                                    <C>                 <C>            
   Cash received from tenants...............................           $     2,145,009     $     2,325,641
   Cash paid to suppliers...................................                  (829,799)           (863,006)
   Cash paid to affiliates..................................                  (105,110)           (163,100)
   Interest received........................................                    19,659              38,154
   Interest paid............................................                  (507,309)           (604,127)
   Property taxes paid and escrowed.........................                  (146,432)           (141,301)
                                                                        --------------      --------------
Net cash provided by operating activities...................                   576,018             592,261
                                                                        --------------      --------------

Cash flows from investing activities:
   Insurance proceeds from  involuntary conversions.........                   293,680                   -
   Additions to real estate investments.....................                  (321,168)            (96,585)
                                                                        --------------      --------------
Net cash used in investing activities.......................                   (27,488)            (96,585)
                                                                        --------------      --------------

Cash flows from financing activities:
   Principal payments on mortgage notes payable.............                  (115,997)           (155,228)
   Management Incentive Distribution paid...................                         -            (956,456)
   Distributions to limited partners........................                  (499,996)                  -
                                                                        --------------      --------------
Net cash used in financing activities.......................                  (615,993)         (1,111,684)
                                                                        --------------      --------------

Net decrease in cash and cash equivalents...................                   (67,463)           (616,008)

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

Cash and cash equivalents at end of period..................           $     1,225,152     $     1,287,894
                                                                        ==============      ==============
</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>
                                                                               Three Months Ended
                                                                                    March 31,
                                                                       -----------------------------------
                                                                             1998                1997
                                                                       ---------------     ---------------
<S>                                                                    <C>                 <C>            
Net income..................................................           $       264,666     $       144,631
                                                                        --------------      --------------

Adjustments to reconcile net income to net cash provided 
   by operating  activities:
   Depreciation and amortization............................                   456,591             468,657
   Amortization of deferred borrowing costs.................                    23,915              23,914
   Amortization of discounts on mortgage
     notes payable..........................................                    12,563              35,192
   Gains on involuntary conversions.........................                  (189,275)                  -
   Changes in assets and liabilities:
     Cash segregated for security deposits..................                   (30,054)            (28,687)
     Accounts receivable....................................                     3,171             (76,029)
     Prepaid expenses and other assets......................                     2,900              13,253
     Escrow deposits........................................                   (54,692)            (46,530)
     Accounts payable.......................................                      (761)            (33,529)
     Accrued interest.......................................                      (800)             (1,110)
     Accrued property taxes.................................                    37,274              90,263
     Other accrued expenses.................................                   (16,860)            (22,798)
     Payable to affiliates - General Partner................                    52,863              15,408
     Security deposits and deferred rental revenue..........                    14,517               9,626
                                                                        --------------      --------------
       Total adjustments....................................                   311,352             447,630
                                                                        --------------      --------------

Net cash provided by operating activities...................           $       576,018     $       592,261
                                                                        ==============      ==============
</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)

                                 March 31, 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 three months ended March 31, 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:

<TABLE>
<CAPTION>
                                                                                Three Months Ended
                                                                                     March 31,
                                                                       -----------------------------------
                                                                            1998                 1997
                                                                       ---------------     ---------------
<S>                                                                    <C>                 <C>            
     Property management fees - affiliates..................           $       104,978     $       117,357
     Charged to general and administrative - affiliates:
       Partnership administration...........................                    52,995              61,151
                                                                        --------------      --------------

                                                                       $       157,973     $       178,508
                                                                        ==============      ==============

     Charged to General Partner's deficit:
       Management Incentive Distribution....................           $       141,210     $       158,023
                                                                        ==============      ==============
</TABLE>


<PAGE>
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.

On November 14, 1997,  a fire caused  approximately  $497,000 of damage to eight
units of Thunder Hollow Apartments.  The Partnership  expects to receive a total
of approximately  $487,000 of insurance  reimbursements  to cover the repair and
restoration  costs  at  Thunder  Hollow  Apartments.  The  Partnership  received
$254,182 of insurance  reimbursement in January 1998. The excess of the expected
insurance  reimbursements over the basis of the property damaged was recorded as
a $328,116 deferred gain on involuntary conversion on the Partnership's December
31, 1997 Balance Sheet. As a result of the $254,182  payment received in January
1998, $171,277 of the deferred gain was recognized in the first quarter of 1998.
The remaining  deferred gain of $156,839 will be recognized when the Partnership
receives the rest of the insurance reimbursements from its insurance carrier.

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  March  31,  1998,  the
Partnership owned four apartment properties and one retail shopping center.
All of the Partnership's properties are subject to mortgage notes.

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 $264,666 for the first quarter of 1998, a
$120,035 increase from the $144,631 of net income reported for the first quarter
of 1997.  However,  net income for 1997 would have been approximately  $3,807 if
the rental  revenues and expenses  pertaining to Country Hills Plaza and Midvale
Plaza had been excluded.

Revenues:

Rental  revenue for the first  quarter of 1998  decreased  $266,775  from rental
revenue  earned for the first quarter of 1997.  However,  rental revenue for the
first  quarter of 1997  includes  revenue  pertaining to Country Hills Plaza and
Redwood Plaza.  Excluding these revenues,  Partnership  rental revenue  actually
increased $95,906 or 4.7% for the first quarter of 1998 as compared to the first
quarter of 1997.
<PAGE>
Increases in rental and  occupancy  rates at  Embarcadero  Club  Apartments  and
Thunder Hollow  Apartments  increased rental revenues at the two properties 6.6%
and 6.5%, respectively.  Rental rates were unchanged at Windrock Apartments, but
improved occupancy rates increased rental revenue 5.6%. Rental revenue decreased
5.2% at Tanglewood  Village Apartments due to increased vacancy and other rental
losses.  Rental revenue decreased 2.6% at Redwood Plaza because of a decrease in
reimbursements from tenants for common area expenses.

The Partnership  recognized  gains of $17,998 and $171,277  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  $156,839  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 quarter of 1997.

Interest revenue  decreased 48% for the first quarter of 1998 as compared to the
first quarter of 1997 because of decreased balances of Partnership cash reserves
invested in interest-bearing accounts.

Expenses:

Partnership  expenses for the first quarter of 1998  decreased  $216,030 or 9.3%
from expenses incurred for the first quarter of 1997.  Expenses incurred for the
first  quarter of 1997 include  expenses  pertaining  to Country Hills Plaza and
Redwood Plaza.  Excluding these expenses,  Partnership expenses increased $4,869
or 0.2%.  Excluding  expenses  related to Country Hills Plaza and Midvale Plaza,
most  categories  of  expense  decreased,   especially  repair  and  maintenance
expenses. The decreases were offset by an increase in general and administrative
expenses.

Excluding  the  effects of Country  Hills Plaza and  Midvale  Plaza,  repair and
maintenance expenses decreased $33,292 or 14.5% for the first quarter of 1998 as
compared to the first quarter of 1997. Approximately 28% of the decrease was due
to decreased  cleaning and decorating  expenses at Embarcadero  Club Apartments.
The Partnership also reported decreased  expenses for appliance  replacements at
Thunder Hollow Apartments.

General and  administrative  expenses increased $59,226 to $90,277 for the first
quarter of 1998 as  compared  to the first  quarter of 1997.  The  increase  was
mainly due to costs  incurred to explore  alternatives  to maximize the value of
the Partnership (see Liquidity and Capital Resources).

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

Cash flow from  operations  decreased  $16,243 or 2.7% for the first  quarter of
1998 as  compared  to the first  quarter of 1997.  Operating  cash flow from the
Partnership's remaining properties increased almost enough to offset the loss of
operating cash flow due to the 1997 sales of Redwood Plaza and Midvale Plaza.

The  Partnership  invested  $321,168  in capital  improvements  during the first
quarter of 1998. Most of the capital improvements related to restoration work at
Thunder  Hollow  Apartments  as a result  of the  November  14,  1997  fire that
destroyed  eight units at the property.  Insurance  received or anticipated  are
expected to cover all restoration costs except a $10,000 deductible. Besides the
restoration  work at Thunder Hollow  Apartments,  the Partnership has budgeted a
total of $625,000 of capital improvements to be completed during 1998.

<PAGE>
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.

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  made during the
three years enabled the  Partnership to increase its rental  revenues and reduce
its repair  and  maintenance  costs.  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 the fire damage at Thunder
Hollow Apartments discussed above.
Budgeted capital improvements for 1998 will be funded from property operations.

At March 31, 1998, the Partnership held cash and cash equivalents of $1,225,152.
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.

Pursuant  to the  Partnership's  previously  announced  liquidation  plans,  the
Partnership  has recently  retained  PaineWebber,  Incorporated as its exclusive
financial  advisor  to  explore  alternatives  to  maximize  the  value  of  the
Partnership.  The  alternatives  being  considered by the  Partnership  include,
without limitation,  a transaction in which limited partnership interests in the
Partnership  are converted into cash. The General  Partner of the Partnership or
entities or persons  affiliated with the General Partner will not be involved as
a purchaser in any of the transactions  contemplated above. Any transaction will
be subject to certain conditions  including (i) approval by the limited partners
of the Partnership, and (ii) receipt of an opinion from an independent financial
advisory  firm  as  to  the  fairness  of  the  consideration  received  by  the
Partnership  pursuant to such  transaction.  Finally,  there can be no assurance
that any transaction will be consummated, or as to the terms thereof.

<PAGE>
None of the  Partnership's  remaining  mortgage notes mature before the expected
dissolution  of the  Partnership.  On October 1, 1996,  the  Partnership  placed
Redwood Plaza on the market for sale.

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 quarters ended March 31, 1998 and 1997, net income
of $2,647 and $144,631,  respectively, was allocated to the General Partner. For
the quarter  ended March 31, 1998,  net income of $262,019 was  allocated to the
limited  partners.  No income was  allocated  to the  limited  partners  for the
quarter ended March 31, 1997.

In 1997 the Partnership distributed $6,146,222 to the limited partners. On March
30, 1998,  the  Partnership  distributed  an additional  $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  paid  $1,774,877 of MID to the General Partner during 1997. No
MID has yet been paid in 1998. The Partnership  anticipates  making MID payments
during 1998 if the Partnership's properties continue to perform as projected.


<PAGE>


                           PART II. OTHER INFORMATION

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

(a)         Exhibits.

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

            4.                   Amended  and   Restated   Limited   Partnership
                                 Agreement 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
                                 March 31, 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 March 31, 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





May 14, 1998                         By:  /s/  Ron K. Taylor
------------                             ---------------------------------------

Date                                      Ron K. Taylor
                                          President and Director of McNeil
                                           Investors, Inc.
                                          (Principal Financial Officer)




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