Form 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

             |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

             |_|    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 0-21552

                      ATEL Cash Distribution Fund IV, L.P.
             (Exact name of registrant as specified in its charter)

California                                                        94-3145429
(State or other jurisdiction of                              (I. R. S. Employer
incorporation or organization)                              Identification No.)

          235 Pine Street, 6th Floor, San Francisco, California 94104 (
                    Address of principal executive offices)

        Registrant's telephone number, including area code: (415)989-8800



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

                                     Yes |X|
                                     No  |_|

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None


<PAGE>

                          Part I FINANCIAL INFORMATION

Item 1.               Financial Statements.


<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                                  BALANCE SHEET

                                  JUNE 30, 1998
                                   (Unaudited)


                                     ASSETS



Cash and cash equivalents                                         $1,674,068

Accounts receivable                                                  295,781

Investments in leases                                             24,524,492
                                                             ----------------
                                                                 $26,494,341
                                                             ================


                        LIABILITIES AND PARTNERS' CAPITAL


Non-recourse debt                                                 $5,804,896

Accounts payable:
   General partners                                                   30,337
   Other                                                             594,843

Accrued interest payable                                              31,282

Unearned operating lease income                                      435,458
                                                             ----------------
Total liabilities                                                  6,896,816

Partners' capital:
     General partners                                                113,402
     Limited partners                                             19,484,123
                                                             ----------------
Total partners' capital                                           19,597,525
                                                             ----------------
                                                                 $26,494,341
                                                             ================



                             See accompanying notes.



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                                INCOME STATEMENTS

                        SIX AND THREE MONTH PERIODS ENDED
                             JUNE 30, 1997 AND 1996
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               Six Months                       Three Months
                                                             Ended June 30,                    Ended June 30,
                                                         1998             1997             1998             1997
Revenues:
Lease revenues:
<S>                                                      <C>              <C>              <C>              <C>       
   Operating leases                                      $1,906,135       $3,911,379       $1,001,732       $1,615,492
   Direct financing leases                                  565,799          567,157          270,191          275,030
   Leveraged leases                                          93,742          124,026           46,870           62,013
Gain on sale of assets                                       48,343        1,104,635           17,211          577,280
Interest income                                              59,687           16,958           26,248            6,716
Other income                                                  4,093            1,142            1,051                -
                                                    ---------------- ---------------- ---------------- ----------------
                                                          2,677,799        5,725,297        1,363,303        2,536,531
Expenses:
Depreciation                                              1,086,519        2,747,687          529,067        1,191,244
Equipment and incentive management fees                     265,280          413,307          155,199          208,282
Interest                                                    251,740          681,579          123,328          248,204
Administrative cost reimbursements                          119,085          140,256           40,287           70,355
Amortization                                                117,593          513,600           61,261          321,582
Other                                                        59,228           86,793           41,134           66,388
Provision for losses                                         13,145           57,231                -           25,343
Professional fees                                             8,369           15,512            5,231           10,641
                                                    ---------------- ---------------- ---------------- ----------------
                                                          1,920,959        4,655,965          955,507        2,142,039
                                                    ---------------- ---------------- ---------------- ----------------
Net income                                                 $756,840       $1,069,332         $407,796         $394,492
                                                    ================ ================ ================ ================
Net income:
     General partners                                        $7,568          $10,693           $4,078           $3,945
     Limited partners                                       749,272        1,058,639          403,718          390,547
                                                    ---------------- ---------------- ---------------- ----------------
                                                           $756,840       $1,069,332         $407,796         $394,492
                                                    ================ ================ ================ ================

Net income per limited partnership unit                       $0.10            $0.14            $0.05            $0.05
Weighted average number of units
   outstanding                                            7,487,350        7,487,350        7,487,350        7,487,350

</TABLE>

                             See accompanying notes.

<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                      SIX MONTH PERIOD ENDED JUNE 30, 1997
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    Limited Partners      General
                                                         Units           Amount          Partners           Total
<S>                                                       <C>            <C>                 <C>           <C>        
Balance December 31, 1997                                 7,487,350      $23,976,764         $105,834      $24,082,598
Distributions to limited partners                                         (5,241,913)               -       (5,241,913)
Net income                                                                   749,272            7,568          756,840
                                                    ---------------- ---------------- ---------------- ----------------
Balance June 30, 1998                                     7,487,350      $19,484,123         $113,402      $19,597,525
                                                    ================ ================ ================ ================
</TABLE>

                             See accompanying notes.

<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                            STATEMENTS OF CASH FLOWS

                        SIX AND THREE MONTH PERIODS ENDED
                             JUNE 30, 1997 AND 1996
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                               Six Months                       Three Months
                                                             Ended June 30,                    Ended June 30,
                                                         1998             1997             1998             1997
Operating activities:
<S>                                                       <C>             <C>               <C>             <C>        
Net income                                                 $756,840       $1,069,332         $407,796         $394,492
Adjustments to reconcile net income to net
   cash provided by (used in) operations:
   Depreciation                                           1,086,519        2,747,687          529,067        1,191,244
   Amortization                                             117,593          513,600           61,261          321,582
   Leveraged lease income                                   (93,742)        (124,026)         (93,742)        (124,026)
   Gain on sale of assets                                   (48,343)      (1,104,635)         (17,211)        (577,280)
   Provision for losses                                      13,145           57,231                -           25,343
     Changes in operating assets and liabilities:
        Accounts receivable                                 124,157       (3,055,606)          44,869       (3,174,611)
        Accounts payable, general partner                  (165,490)         (11,396)        (211,813)          (4,127)
        Accounts payable, other                             549,983           (8,395)         575,791           12,781
        Accrued interest payable                               (634)         (43,091)           2,659          (11,536)
        Deposits due to lessees                                   -          (97,772)               -                -
        Unearned operating lease income                     (54,865)        (147,560)          (4,385)        (154,464)
                                                    ---------------- ---------------- ---------------- ----------------
Net cash from (used in) operations                        2,285,163         (204,631)       1,294,292       (2,100,602)
                                                    ---------------- ---------------- ---------------- ----------------

Investing activities:
Proceeds from sales of assets                               496,550       14,368,852          365,874        9,605,818
Reduction in investment in direct financing
   leases                                                 1,279,275        1,426,678          612,437          696,809
Reduction in investment in leveraged leases                       -          177,571           46,872           82,492
Purchase of equipment on direct financing
   leases                                                         -          (77,518)               -                -
Purchase of equipment on operating leases                         -          (42,227)               -                -
                                                    ---------------- ---------------- ---------------- ----------------

Net cash provided by investing activities                 1,775,825       15,853,356        1,025,183       10,385,119
                                                    ---------------- ---------------- ---------------- ----------------
</TABLE>



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Continued)

                        SIX AND THREE MONTH PERIODS ENDED
                             JUNE 30, 1997 AND 1996
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                               Six Months                       Three Months
                                                             Ended June 30,                    Ended June 30,
                                                         1998             1997             1998             1997
Financing activities:
<S>                                                      <C>                <C>            <C>                <C>     
Payments of non-recourse debt                            (1,135,103)      (9,850,695)        (574,080)      (6,213,264)
Distributions to limited partners                        (5,241,913)      (5,241,157)      (2,623,308)      (2,620,581)
Repayment of line of credit                                       -       (1,000,000)               -         (500,000)
                                                    ---------------- ---------------- ---------------- ----------------

Net cash used by financing activities                    (6,377,016)     (16,091,852)      (3,197,388)      (9,333,845)
                                                    ---------------- ---------------- ---------------- ----------------
Net decrease in cash and cash
   equivalents                                           (2,316,028)        (443,127)        (877,913)      (1,049,328)
Cash at beginning of period                               3,990,096          696,421        2,551,981        1,302,622
                                                    ---------------- ---------------- ---------------- ----------------
Cash at end of period                                    $1,674,068         $253,294       $1,674,068         $253,294
                                                    ================ ================ ================ ================

Supplemental disclosures of cash flow information:

Cash paid during period for interest                       $252,374         $724,670         $120,669         $200,434
                                                    ================ ================ ================ ================


Supplemental schedule of non-cash transactions:

Operating lease assets reclassified to assets
   held or sale or lease                                                    $133,552
                                                                     ================
</TABLE>



                             See accompanying notes.



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1998
                                   (Unaudited)


1. Summary of significant accounting policies:

Interim financial statements:

The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners,  necessary to a fair statement of financial
position and results of operations for the interim periods  presented.  All such
adjustments are of a normal recurring nature.  These unaudited interim financial
statements  should be read in  conjunction  with the most recent  report on Form
10K.


2. Organization and partnership matters:

ATEL Cash  Distribution  Fund IV, L.P. (the  Partnership),  was formed under the
laws of the State of  California  on  September  19,  1991,  for the  purpose of
acquiring  equipment  to  engage in  equipment  leasing  and  sales  activities.
Contributions in the aggregate of $600 were received as of October 8, 1991, $100
of which  represented the General  Partner's  continuing  interest,  and $500 of
which represented the Initial Limited Partners' capital investment.

Upon the sale of the  minimum  amount of Units of Limited  Partnership  interest
(Units) of $1,200,000 and the receipt of the proceeds  thereof on March 6, 1992,
the Partnership commenced operations.  The Fund or the General Partner on behalf
of the Fund, will incur costs in connection with the organization,  registration
and  issuance  of the Units.  The amount of such costs to be born by the Fund is
limited by certain provisions in the Agreement of Limited Partnership.

As of  February  3, 1993,  the Fund had  received  subscriptions  for  7,500,000
Limited  Partnership  Units  ($75,000,000)  in addition  to the Initial  Limited
Partners' 50 Units and the Partnership's offering was closed.

The Partnership's business consists of leasing various types of equipment. As of
June 30, 1998,  the  original  terms of the leases were from six months to eight
years.




<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1998
                                   (Unaudited)


3. Investment in leases:

The Partnership's investment in leases consists of the following:

<TABLE>
<CAPTION>
                                                                       Depreciation
                                                                       Expense or        Reclass-
                                   December 31,                       Amortization     ifications &       June 30,
                                       1997            Additions        of Leases      Dispositions         1998
                                       ----            ---------        ---------     --------------        ----
<S>                                    <C>                 <C>           <C>                <C>            <C>        
Net investment in operating
   leases                              $13,166,852                       ($1,086,519)       ($961,876)     $11,118,457
Net investment in direct
   financing leases                      8,803,127                        (1,279,275)        (508,328)       7,015,524
Net investment in leveraged
   leases                                4,722,893                            93,742                -        4,816,635
Residual value interests                   582,057                                 -                -          582,057
Equipment held for lease                   131,158                                 -        1,021,997        1,153,155
Initial direct costs, net of
   accumulated amortization
   of $1,022,825 in 1997 and
   $890,638 in 1998                        597,256                          (117,593)               -          479,663
Reserve for losses                        (627,854)        ($13,145)               -                -         (640,999)
                                ------------------- ---------------- ---------------- ---------------- ----------------
                                       $27,375,489         ($13,145)     ($2,389,645)       ($448,207)     $24,524,492
                                =================== ================ ================ ================ ================
</TABLE>

The following  schedule provides an analysis of the Partnership's  investment in
property on operating leases by major  classifications  as of December 31, 1997,
acquisitions and dispositions  during the quarters ended March 31, 1998 and June
30, 1998 and as of June 30, 1998.

<TABLE>
<CAPTION>
                                                                  Acquisitions &
                                 December 31,                      Dispositions       June 30,
                                     1997          1st Quarter      2nd Quarter         1998
                                     ----          -----------      -----------         ----
<S>                                 <C>              <C>                <C>            <C>        
Construction equipment               $4,985,297                                         $4,985,297
Printing                              4,393,249                                          4,393,249
Transportation                        5,412,784      ($1,861,391)       ($490,466)       3,060,927
Corporate aircraft                    2,470,969                -                -        2,470,969
Materials handling                    2,389,826                -                -        2,389,826
Manufacturing                         1,587,670                -                -        1,587,670
Ground support equipment              1,127,988                -                -        1,127,988
Data processing                         851,561                -         (165,767)         685,794
Other                                 2,054,576       (1,495,048)               -          559,528
Office equipment                        216,080                -                -          216,080
                                ---------------- ---------------- ---------------- ----------------
                                     25,490,000       (3,356,439)        (656,233)      21,477,328
Less accumulated depreciation       (12,323,148)       1,983,425          (19,148)     (10,358,871)
                                ---------------- ---------------- ---------------- ----------------
                                    $13,166,852      ($1,373,014)       ($675,381)     $11,118,457
                                ================ ================ ================ ================
</TABLE>



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1998
                                   (Unaudited)


3. Investments in leases (continued):

All of the property on operating  leases was acquired during 1992,  1993,  1994,
1995, 1996 and 1997.

At June 30, 1998, the aggregate  amounts of future minimum lease payments are as
follows:

              Year ending      Direct
             December 31,     Financing        Operating          Total
                     1998       $1,552,209       $1,600,932       $3,153,141
                     1999        2,551,940        2,575,936        5,127,876
                     2000        1,638,488        1,748,449        3,386,937
                     2001        1,128,109        1,195,808        2,323,917
                     2002          557,077          857,288        1,414,365
               Thereafter           23,660          625,836          649,496
                           ---------------- ---------------- ----------------
                                $7,451,483       $8,604,249      $16,055,732
                           ================ ================ ================


4. Non-recourse debt:

Notes payable to financial  institutions are due in varying  monthly,  quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments  of lease  payments and pledges of the assets  which were  purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.25% to 10.57%.

Future minimum principal payments of long-term  non-recourse debt as of June 30,
1998 are as follows:

               Year ending
              December 31,     Principal        Interest           Total
                      1998       $1,170,183         $203,239       $1,373,422
                      1999        2,045,296          287,129        2,332,425
                      2000        1,535,205          151,656        1,686,861
                      2001          697,282           56,062          753,344
                      2002          356,930           22,731          379,661
                            ---------------- ---------------- ----------------
                                 $5,804,896         $720,817       $6,525,713
                            ================ ================ ================



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1998
                                   (Unaudited)


5.  Related party transactions:

The terms of the  Agreement  of Limited  Partnership  provide  that the  General
Partners  and/or  Affiliates are entitled to receive  certain fees for equipment
acquisition, management and resale and for management of the Partnership.

The General Partners and/or  Affiliates  earned the following fees,  commissions
and reimbursements, pursuant to the Limited Partnership Agreement as follows:

                                                  1998             1997
                                                  ----             ----
Reimbursement of administrative costs               $119,085         $140,256

Incentive and equipment management fees              265,280          413,307
                                             ---------------- ----------------
                                                    $384,365         $553,563
                                             ================ ================

The amounts  above are gross  amounts  incurred by the General  Partners  and/or
Affiliates, including commissions to broker-dealers for the sales of Partnership
Units.


6. Partner's capital:

The Fund is  authorized  to issue up to 7,500,000  Units of Limited  Partnership
interest in addition to the Initial Limited Partners.

The Fund's Net Profits,  Net Losses and Tax Credits are to be  allocated  99% to
the Limited Partners and 1% to the General Partners.

As more fully described in the Agreement of Limited Partnership,  available Cash
from  Operations  and Cash from Sales or  Refinancing  shall be  distributed  as
follows:

     First, 5% of  Distributions  of Cash from Operations to the General Partner
as Incentive Management Fees.

     Second, the balance to the Limited Partners until the Limited Partners have
          received aggregate  Distributions,  as defined,  in an amount equal to
          their  Original  Invested  Capital,  as defined,  plus a 10% per annum
          cumulative  (compounded  daily)  return  on  their  Adjusted  Invested
          Capital, as defined.

     Third,  the General Partner will receive as Incentive  Management Fees, the
following:

           (A) 10% of remaining Cash from Operations, as defined,

           (B) 15% of remaining Cash from Sales or Refinancing, as defined.

     Fourth, the balance to the Limited Partners.


<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1998
                                   (Unaudited)


7.  Line of credit:

The  Partnership  participates  with the  General  Partner  and  certain  of its
Affiliates in a $90,000,000 revolving credit agreement with a group of financial
institutions  which  expires on October  28,  1998.  The  agreement  includes an
acquisition  facility to be used by the  Partnership  and  Affiliates to provide
bridge financing for assets on leases.  Draws on the acquisition facility by any
individual  borrower  are  secured  only by that  borrower's  assets,  including
equipment and related leases.

At June 30, 1998, the Partnership had no borrowings under the line of credit.

The credit agreement  includes certain  financial  covenants  applicable to each
borrower.  The  Partnership  was in compliance with its covenants as of June 30,
1998.




<PAGE>

Item 2.               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                      FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capital Resources and Liquidity

Funds which have been  received,  but which have not yet been invested in leased
equipment, are invested in interest-bearing accounts or  high-quality/short-term
commercial paper.

The  Partnership's  primary source of liquidity during 1998 were lease revenues,
proceeds from the sales of lease assets and borrowings under the line of credit.
The  liquidity of the  Partnership  will vary in the future,  increasing  to the
extent cash flows from leases exceed  expenses,  and  decreasing as lease assets
are  acquired,  as  distributions  are made to the limited  partners  and to the
extent expenses exceed cash flows from leases.

The Partnership currently has available adequate reserves to meet contingencies,
but in the event those  reserves were found to be  inadequate,  the  Partnership
would  likely be in a position to borrow  against its current  portfolio to meet
such  requirements.  The general  partner  envisions  no such  requirements  for
operating purposes.

The  Partnership  participates  with the  General  Partner  and  certain  of its
affiliates  in  a  $90,000,000   revolving  line  of  credit  with  a  financial
institution. The line of credit expires on October 28, 1998.

As of June 30, 1998, the  Partnership  had borrowed  approximately  $38,342,000,
with a remaining unpaid balance of $5,804,896. Borrowings are to be non-recourse
to the  Partnership,  that is, the only  recourse  of the lender  will be to the
equipment or corresponding lease acquired or secured with the loan proceeds. The
general  partner  expects  that  aggregate  borrowings  in the  future  will  be
approximately  40% of aggregate  equipment cost. In any event,  the Agreement of
Limited  Partnership  limits  such  borrowings  to  40%  of the  total  cost  of
equipment, in aggregate.

No  commitments  of capital  have been or are expected to be made other than for
the acquisition of additional equipment. As of June 30, 1998, there were no such
commitments.

If  inflation  in the general  economy  becomes  significant,  it may affect the
Partnership  inasmuch as the residual  (resale) values and rates on re-leases of
the  Partnership's  leased  assets may  increase as the costs of similar  assets
increase.  However,  the  Partnership's  revenues from existing leases would not
increase,  as such rates are generally fixed for the terms of the leases without
adjustment for inflation.

If interest rates increase  significantly,  the lease rates that the Partnership
can obtain on future  leases will be expected to increase as the cost of capital
is a significant  factor in the pricing of lease  financing.  Leases  already in
place, for the most part, would not be affected by changes in interest rates.


<PAGE>

Cash Flows, 1998 vs. 1997:

Six months:

During the first six months of 1998,  rents from operating and direct  financing
leases were the primary sources of cash flows.

Cash flows from  operations  increased by $2,489,794  from ($204,631) in 1997 to
$2,285,163  in 1998.  The  increase  is a result of  decreased  operating  lease
revenues  offset by decreased  balances of receivables  (due to sales of certain
assets in 1997).

Sources of cash from investing  activities  consisted of proceeds from the sales
of  lease  assets  and  from  direct  financing  lease  rents  accounted  for as
reductions of the net  investment in such leases.  Proceeds from sales of assets
decreased  from  $14,368,852 in 1997 to $496,550 in 1998. A large portion of the
sales proceeds in 1997 was used to pay off non-recourse debt associated with the
assets sold.

In 1998 and 1997, there were no sources of cash from financing activities.  Cash
used to pay non-recourse debt decreased  significantly.  In 1997, certain leases
which were financed  primarily with  non-recourse  debt were sold and upon sale,
the related  debt was  repaid.  In 1997,  debt  payments  were due to  scheduled
repayments.

Three months:

The two major sources of cash for the second  quarter were  operating and direct
financing lease rents.

Operating  lease rents have  decreased  by  $613,760  from the prior year due to
asset sales during the preceding twelve months.

In 1997,  proceeds from lease assets sales were the most  significant  source of
cash from  investing  activities.  They  decreased  from  $9,605,818  in 1997 to
$365,874 in 1998 due to decreased  amounts of asset sales as noted above for the
six month period.

During the second quarter of 1998 and 1997,  there were no financing  sources of
cash.  Payments of  non-recourse  debt  decreased  for the same reasons as noted
above for the six month period.


Results of Operations

Operations  in the 1998  resulted  in net income of  $756,840  for the six month
period and $407,796 for the three month period. In 1997,  operations resulted in
net income of  $1,069,332  for the six month  period and  $394,492 for the three
month period.

Revenues  decreased from $5,725,297 in 1997 to $2,677,799 in 1998, a decrease of
$3,047,498.  Operating  lease  revenues  declined  by  $2,005,244  due to  lease
terminations  and sales of the  related  assets.  Gains  recognized  on sales of
assets also  decreased by $1,056,292  compared to 1997.  Most of the assets sold
were assets which had come off operating leases.  The original cost of operating
lease assets sold increased from $22,978,803 in 1997 to $4,012,672 in 1998.

The Partnership's  operating expenses decreased by $2,735,006  compared to 1997.
Combined,  depreciation and amortization expenses decreased by $2,057,175. These
decreases  resulted  from the lease  terminations  and asset sales noted  above.
Interest expense  decreased  compared to 1997 as a result of the debt repayments
noted above. Management fees (related to lease revenues) decreased from $413,307
in 1997 to $265,280 in 1998.


<PAGE>

Other

Year 2000 Issues

The year 2000 issue is the result of computer  programs  being written using two
digits rather than four to define the  applicable  year.  Any computer  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 a system  failure  or
miscalculation causing disruptions of operations, including, among other things,
a  temporary  inability  to process  transactions  or engage in  similar  normal
business activities.

The Partnership  uses primarily third party software and is  communicating  with
key vendors to ensure that the  Partnership's  systems are year 2000  compliant.
Based on these  discussions,  the  Partnership  does not  expect  that the costs
related to the year 2000 issue will be  significant.  Ultimately,  the potential
impact  of the year  2000  issue  will  depend on the way in which the year 2000
issue is addressed by businesses and other entities whose financial condition or
operational capability is important to the Partnership.


                            PART II OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS.

         Inapplicable.

Item 2. CHANGES IN SECURITIES.

         Inapplicable.

Item 3. DEFAULTS UPON SENIOR SECURITIES.

         Inapplicable.

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

         Inapplicable.

Item 5. OTHER INFORMATION.

         Inapplicable.

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

                  (a) Documents filed as a part of this report

                    1. Financial Statements

                       Included in Part I of this report:

                       Balance Sheets, June 30, 1998 and December 31, 1997.

                       Income  statements  for the six and three  month  periods
                       ended June 30, 1998 and 1997.

                       Statement  of  changes  in  partners'  equity for the six
                       months ended June 30, 1998.

                       Statements  of cash  flows  for the six and  three  month
                       periods ended June 30, 1998 and 1997.

                       Notes to the Financial Statements.

                    2. Financial Statement Schedules

                       All other  schedules  for which  provision is made in the
                       applicable  accounting  regulations of the Securities and
                       Exchange  Commission  are not required  under the related
                       instructions or are inapplicable, and therefore have been
                       omitted.

                  (b)  Report on Form 8-K

                       None

<PAGE>

                                   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.

Date:
August 12, 1998

                      ATEL CASH DISTRIBUTION FUND IV, L.P.
                                  (Registrant)



                            By: ATEL Financial Corporation
                                General Partner of Registrant




                              By:   /s/ A.  J.  BATT
                                   ---------------------------------
                                   A. J. Batt
                                   President and Chief Executive Officer
                                   of General Partner




                              By:    /s/ DEAN L. CASH
                                   ---------------------------------
                                   Dean L. Cash
                                   Executive Vice President
                                   of General Partner




                    By:   /s/ F. RANDALL BIGONY
                        ------------------------------------------------------
                        F. Randall Bigony
                        Principal financial officer of registrant




                    By:   /s/ DONALD E.  CARPENTER
                        ------------------------------------------------------
                        Donald E.  Carpenter,
                        Principal accounting officer of
                        registrant