SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[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                         33-80849
                       ---------------------------------------------------------

                      Capital Preferred Yield Fund-IV, L.P.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           Delaware                                      84-1331690
   -----------------------                  ------------------------------------
   (State of organization)                  (I.R.S. Employer Identification No.)

 7175 West Jefferson Avenue, Suite 4000
          Lakewood, Colorado                               80235
----------------------------------------                 ----------
(Address of principal executive offices)                 (Zip Code)


        Registrant's telephone number, including area code (303) 980-1000
                                                           ---------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  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      .
                                       -----    -----

                        Exhibit Index Appears on Page 15

                               Page 1 of 16 Pages



<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          Quarterly Report on Form 10-Q
                              For the Quarter Ended
                                  June 30, 1998


                                Table of Contents
                                -----------------



PART I.   FINANCIAL INFORMATION                                             PAGE
                                                                            ----
     Item 1.  Financial Statements (Unaudited)

              Balance Sheets - June 30, 1998 and December 31, 1997           3

              Statements of Income - Three and Six Months Ended
              June 30, 1998 and 1997                                         4

              Statement of Partners' Capital - Three and Six Months Ended
              June 30, 1998 and 1997                                         5

              Statements of Cash Flows - Six Months Ended
              June 30, 1998 and 1997                                         6

              Notes to Financial Statements                                 7-10

     Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations                                    11-14


PART II.  OTHER INFORMATION

     Item 1.  Legal Proceedings                                              15

     Item 6.  Exhibits and Reports on Form 8-K                               15

              Signature                                                      16


                                        2

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                 BALANCE SHEETS



                                     ASSETS


                                                       June 30,     December 31,
                                                         1998           1997
                                                     -----------    ------------
                                                     (Unaudited)

Cash and cash equivalents                            $   610,726     $ 4,676,747
Accounts receivable                                      687,101         383,407
Receivable from related party                            300,176          10,000
Equipment held for sale or re-lease                      120,388               -
Net investment in direct finance leases                4,803,748       4,602,977
Leased equipment, net                                 53,375,777      46,488,309
                                                     -----------     -----------

Total assets                                         $59,897,916     $56,161,440
                                                     ===========     ===========


                        LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
    Accounts payable and accrued liabilities         $   392,444     $   411,814
    Payables to affiliates                               219,361          58,722
    Rents received in advance                           916, 454         817,900
    Distributions payable to partners                      9,352         433,396
    Discounted lease rentals                          19,793,690      17,633,047
                                                     -----------     -----------

Total liabilities                                     21,331,301      19,354,879
                                                     -----------     -----------

Partners' capital:
    General partner                                            -               -
    Limited partners:
          Class A                                     38,110,797      36,374,010
          Class B                                        455,818         432,551
                                                     -----------     -----------

Total partners' capital                               38,566,615      36,806,561
                                                     -----------     -----------

Total liabilities and partners' capital              $59,897,916     $56,161,440
                                                     ===========     ===========



   The accompanying notes are an integral part of these financial statements.

                                        3

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                              STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>



                                                       Three Months Ended                  Six Months Ended
                                                            June 30,                          June 30,
                                                  ----------------------------        ----------------------------
                                                    1998              1997              1998               1997
                                                  ----------        ----------        ----------        ----------
<S>                                              <C>               <C>               <C>               <C>       
Revenue:
     Operating lease rentals                      $4,848,638        $2,842,519        $9,170,800        $4,348,365
     Direct finance lease income                      46,986            72,160           135,333           100,282
     Equipment sales margin                           52,890                 -            79,985                 -
     Interest income                                  26,441            45,829            91,238            95,807
                                                  ----------        ----------        ----------        ----------
         Total revenue                             4,974,955         2,960,508         9,477,356         4,544,454
                                                  ----------        ----------        ----------        ----------

Expenses:
     Depreciation                                  3,942,243         2,305,959         7,425,010         3,497,553
     Direct services from general partner             47,278            19,238            73,627            41,410
     Management fees paid to general partner         110,146            60,585           197,639            90,698
     General and administrative                       49,196            36,748            90,365            72,625
     Provision for losses                             25,000                 -            25,000                 -
     Interest on discounted lease rentals            389,704           359,961           708,406           508,849
                                                  ----------        ----------        ----------        ----------
         Total expenses                            4,563,567         2,782,491         8,520,047         4,211,135
                                                  ----------        ----------        ----------        ----------

Net income                                        $  411,388        $  178,017        $  957,309        $  333,319
                                                  ==========        ==========        ==========        ==========

Net income allocated:
     To the general partner                       $   14,067        $   17,933        $   33,845        $   34,473
     To the Class A limited partners                 393,302           158,454           914,122           295,802
     To the Class B limited partner                    4,019             1,630             9,342             3,044
                                                  ----------        ----------        ----------        ----------
                                                  $  411,388        $  178,017        $  957,309        $  333,319
                                                  ==========        ==========        ==========        ==========

Net income per weighted average Class A
          limited partner unit outstanding        $      .79        $      .58        $     1.86        $     1.26
                                                  ==========        ==========        ==========        ==========

Weighted average Class A limited partner
        units outstanding                            497,640           271,648           491,500           234,694
                                                  ==========        ==========        ==========        ==========
</TABLE>







   The accompanying notes are an integral part of these financial statements.

                                        4

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                       STATEMENT OF PARTNERS' CAPITAL For
                  the Three and Six Months Ended June 30, 1998 and 1997
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                       Class A
                                                       Limited       Class A          Class B
                                           General     Partners      Limited          Limited
                                           Partner      Units        Partners         Partner          Total
                                          ---------    --------    ------------     -----------     ------------

<S>                                      <C>           <C>        <C>              <C>            <C>
Partners' capital, January 1, 1998        $       -     455,953    $ 36,374,010     $  432,551     $ 36,806,561

Capital contributions                             -      43,367       4,336,754         40,000        4,376,754
Commissions and offering costs on
  sale of Class A limited partner units      (6,771)          -        (670,280)             -         (677,051)
Redemptions                                       -        (411)        (39,662)             -          (39,662)
Net income                                   19,778           -         520,820          5,323          545,921
Distributions declared to partners          (13,007)          -      (1,274,077)       (12,950)      (1,300,034)
                                          ---------    --------    ------------     ----------     ------------
Partners' capital, March 31, 1998                 -     498,909      39,247,565        464,924       39,712,489
                                          ---------    --------    ------------     ----------     ------------

Commissions and offering costs on
  sale of Class A limited partner units        (746)          -         (73,876)             -          (74,622)
Redemptions                                       -      (1,705)       (150,772)             -         (150,772)
Net income                                   14,067           -         393,302          4,019          411,388
Distributions declared to partners          (13,321)          -      (1,305,422)       (13,125)      (1,331,868)
                                          ---------    --------    ------------     ----------     ------------
Partners' capital, June 30, 1998          $       -     497,204    $ 38,110,797     $  455,818     $ 38,566,615
                                          =========    ========    ============     ==========     ============

Partners' capital, January 1, 1997        $       -     154,503    $ 12,878,374     $  146,243     $ 13,024,617

Capital contributions                             -      80,279       8,027,905         80,000        8,107,905
Commissions and offering costs on
  sale of Class A limited partner units     (11,525)          -      (1,140,936)             -       (1,152,461)
Net income                                   16,540           -         137,348          1,414          155,302
Distributions declared to partners           (5,015)          -        (523,821)        (5,338)        (534,174)
                                          ---------    --------    ------------     ----------     ------------
Partners' capital, March 31, 1997                 -     234,782      19,378,870        222,319       19,601,189
                                          ---------    --------    ------------     ----------     ------------

Capital contributions                     $       -      76,471       7,642,162         80,000        7,722,162
Volume discount                                   -           -               -              -                -
Commissions and offering costs on
  sale of Class A limited partner units     (11,007)          -      (1,089,675)             -       (1,100,682)
Redemptions                                       -         (80)         (7,274)             -           (7,274)
Net income                                   17,933           -         158,454          1,630          178,017
Distributions declared to partners           (6,926)          -        (714,599)        (7,262)        (728,787)
                                          ---------    --------    ------------     ----------     ------------
Partners' capital, June 30, 1997          $       -     311,173    $ 25,367,938     $  296,687     $ 25,664,625
                                          =========    ========    ============     ==========     ============

</TABLE>








   The accompanying notes are an integral part of these financial statements.

                                        5

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

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

<S>                                                              <C>              <C>         
Net cash provided by operating activities                         $  8,990,088     $  3,812,110
                                                                  ------------     ------------

Cash flows from investing activities:
   Purchases of equipment on operating leases from affiliate       (12,188,475)     (13,968,184)
   Investment in direct finance leases, acquired from affiliate       (952,964)        (536,466)
                                                                  ------------     ------------
Net cash used in investing activities                              (13,141,439)     (14,504,650)
                                                                  ------------     ------------

Cash flows from financing activities:
   Proceeds from Class A capital contributions                       4,336,754       15,670,067
   Proceeds from Class B capital contributions                          40,000          160,000
   Proceeds from discounted lease rentals                            3,994,817        3,695,735
   Principal payments on discounted lease rentals                   (4,288,189)      (2,159,424)
   Redemptions of Class A limited partner units                       (190,434)          (7,274)
   Commissions paid to affiliate in connection
      with the sale of Class A limited partner units                  (434,326)      (1,573,007)
   Non-accountable organization and offering expenses
      reimbursed to the general partner in connection
      with the sale of Class A limited partner units                  (317,346)        (677,944)
   Distributions to partners                                        (3,055,946)      (1,099,277)
                                                                  ------------     ------------

Net cash provided by financing activities                               85,330       14,008,876
                                                                  ------------     ------------

Net increase (decrease) in cash and cash equivalents                (4,066,021)       3,316,336

Cash and cash equivalents at beginning of period                     4,676,747        3,286,072
                                                                  ------------     ------------

Cash and cash equivalents at end of period                        $    610,726     $  6,602,408
                                                                  ============     ============

Supplemental disclosure of cash flow information:
   Interest paid on discounted lease rentals                      $    708,406     $    508,849
Supplemental disclosure of noncash investing and
financing activities:
   Discounted lease rentals assumed in equipment acquisitions        2,454,015       16,673,062
   Reduction in Partner's capital accounts for commissions and
     costs payable to affiliates                                       751,673        2,253,143

</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                        6

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

1.   Basis of Presentation:
     ---------------------

     The  accompanying  unaudited  financial  statements  have been  prepared in
     accordance  with  generally  accepted  accounting  principles  for  interim
     financial  information and the  instructions to Form 10-Q and Rule 10-01 of
     Regulation S-X. Accordingly, they do not include all of the information and
     disclosures required by generally accepted accounting principles for annual
     financial   statements.   In  the  opinion  of  the  general  partner,  all
     adjustments   (consisting  of  normal  recurring  adjustments)   considered
     necessary for a fair presentation have been included.  The balance sheet at
     December  31,  1997 was  derived  from  the  audited  financial  statements
     included in the  Partnership's  1997 Form 10-K.  For  further  information,
     refer to the financial statements of Capital Preferred Yield Fund-IV,  L.P.
     (the "Partnership"),  and the related notes,  included in the Partnership's
     Annual Report on Form 10-K for the year ended  December 31, 1997 (the "1997
     Form 10-K"), previously filed with the Securities and Exchange Commission.

     RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS

     In June 1997 the Financial  Accounting  Standards Board issued Statement of
     Financial  Accounting  Standards No. 130,  Reporting  Comprehensive  Income
     ("Statement  130"),  which  requires  comprehensive  income to be displayed
     prominently  within  the  financial  statements.  Comprehensive  income  is
     defined  as  all  recognized   changes  in  equity  during  a  period  from
     transactions and other events and circumstances except those resulting from
     investments  by owners and  distributions  to owners.  Net income and items
     that  previously  have been  recorded  directly  in equity are  included in
     comprehensive  income.   Statement  130  affects  only  the  reporting  and
     disclosure  of  comprehensive  income  but does not affect  recognition  or
     measurement  of  income.  Statement  130  is  effective  for  fiscal  years
     beginning after December 15, 1997, with earlier application permitted.  The
     Partnership  adopted  Statement  130 in the  first  quarter  of  1998.  The
     adoption did not have an impact on its financial reporting.

2.   Transactions With the General Partner and Affiliates
     ----------------------------------------------------

     SALES COMMISSIONS AND OFFERING COSTS

     Under the terms of the Partnership  Agreement,  an affiliate of the general
     partner is entitled to receive sales commissions and wholesaling fees equal
     to 10% of the Class A limited partners' capital contributions,  up to 9% of
     which is paid to participating broker-dealers.  During the six months ended
     June 30, 1998, the Partnership  incurred  commissions and fees of $433,676,
     including $362,775 that were paid to participating broker-dealers.

     As provided  in the  Partnership  Agreement,  the  general  partner  earned
     $248,451 as reimbursement for expenses incurred during the six months ended
     June 30, 1998 in connection  with the  organization  of the Partnership and
     the offering of Class A limited partner units, $74,622 of which is included
     in payable to affiliates.

     As  provided  in the  Prospectus,  a volume  discount  equal to 1.0% of the
     purchase  price per unit for all  purchases of $500,000 or more was granted
     during the six months ended June 30, 1998 totaling $68,895.


                                        7

<PAGE>

                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                    NOTES TO FINANCIAL STATEMENTS, continued
                                   (Unaudited)


2.   Transactions With the General Partner and Affiliates, continued
     ----------------------------------------------------

     DIRECT SERVICES FROM GENERAL PARTNER:

     The  general  partner  and  an  affiliate  provide   accounting,   investor
     relations,  billing, collecting, asset management, and other administrative
     services to the Partnership. The Partnership reimburses the general partner
     for these services  performed on its behalf as permitted under the terms of
     the  Partnership  Agreement.  The  Partnership  recorded  $73,627 of direct
     services  from the general  partner for the six months ended June 30, 1998.
     Of that amount $9,931 is included in payables to affiliates.

     MANAGEMENT FEES PAID TO GENERAL PARTNER:

     In accordance  with the  Partnership  Agreement the general partner earns a
     management  fee  in  connection  with  its  management  of  the  equipment,
     calculated as a percentage of the monthly gross rentals received,  and paid
     monthly in arrears.  The Partnership  recorded a management fee of $197,639
     for the six months ended June 30, 1998. Of that amount  $35,170 is included
     in payables to affiliates.

     GENERAL AND ADMINISTRATIVE EXPENSES:

     The general  partner and an affiliate are reimbursed for the actual cost of
     administrative  expenses paid on behalf of Partnership per the terms of the
     Partnership  Agreement.  At June 30, 1998, $99,638 of reimbursable expenses
     are included in payables to affiliates.

     RECEIVABLE FROM RELATED PARTY:

     The general  partner  collects and applies rental  payments to the lessee's
     account with the  Partnership,  for those lessees who remit directly to the
     general   partner.   The  rental  payments  are  then  transferred  to  the
     Partnership,  eliminating the receivable from related party balance. At the
     end of June 1998,  $300,176 in rents were  applied by the  general  partner
     that were transferred to the Partnership in July 1998.

     EQUIPMENT PURCHASES

     During the six months ended June 30,  1998,  the  Partnership  acquired the
     equipment described below from Capital Associates International, Inc.:

<TABLE>
<CAPTION>

                                                                                                      Total
                                                                                  Acquisition       Equipment
                                                                     Cost of        Fees and         Purchase
              Lessee                  Equipment Description         Equipment    Reimbursements       Price
      ----------------------------    ---------------------       ------------   --------------   ------------

     <S>                             <C>                         <C>              <C>            <C>         
      Advanced Micro                  Wafer fabrication           $  2,048,294     $   70,973     $  2,119,267
      Alliant Techsystems, Inc.       Lathes                           143,867          4,985          148,852
      Alliant Techsystems, Inc.       PBX                              668,822         23,175          691,997

                                                             8

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                    NOTES TO FINANCIAL STATEMENTS, continued
                                   (Unaudited)


2.    Transactions With the General Partner and Affiliates, continued
      ----------------------------------------------------

      EQUIPMENT PURCHASES, continued
                                                                                                      Total
                                                                                  Acquisition       Equipment
                                                                     Cost of        Fees and         Purchase
              Lessee                  Equipment Description         Equipment    Reimbursements       Price
      ----------------------------    ---------------------       ------------   --------------   ------------

      Alliant Techsystems, Inc.       Sweeper/scrubber            $     20,818      $     721     $     21,539
      Brown-Strauss Steel Div.        Forklift                          95,526          3,310           98,836
      Busy Beaver Building Centers    Retail FF&E                      236,536          8,279          244,815
      CH2M Hill, Inc.                 Office FF&E                      115,119          3,989          119,108
      CMC Industries                  Solder machine                 1,100,000         38,115        1,138,115
      Consolidated Diesel             Reach trucks                      12,570            436           13,006
      Consolidated Diesel             Boom lift                         33,750          1,169           34,919
      Consolidated Diesel             Copier                            53,388          1,850           55,238
      Consolidated Diesel             Forklifts                         19,235            666           19,901
      Consolidated Diesel             Projector                          6,649            230            6,879
      Conair                          Forklifts                         47,282          1,638           48,920
      Dupont                          Yard tractor                      63,756          2,209           65,965
      E-Trade                         Office FF&E                      939,273         32,546          971,819
      Fingerhut Corp.                 Proofing system                   40,000          1,386           41,386
      Furr's SuperMarkets             Restaurant FF&E                  406,623         14,232          420,855
      GEICO                           Personal computers             1,480,186         51,288        1,531,474
      General Motors Corp.            Forklift                          19,864            688           20,552
      General Motors Corp.            Lawn mower                        16,085            557           16,642
      General Motors Corp.            Material handler                  26,347            913           27,260
      General Motors Corp.            Scrubber                          84,598          2,931           87,529
      General Motors Corp.            Sweeper                           99,203          3,437          102,640
      General Motors Corp.            Sweeper/scrubber                 231,871          8,035          239,906
      General Motors Corp.            Tractor                           57,844          2,004           59,848
      Georgetown Steel                Forklifts                         48,867          1,693           50,560
      Glassmaster Company             Machine tools                    566,786         19,837          586,623
      ICI Americas, Inc.              Boom lift                         47,266          1,638           48,904
      ICI Americas, Inc.              Personal computers                17,300            599           17,899
      ICI Americas, Inc.              Material handler                  76,750          2,659           79,409
      ICI Americas, Inc.              Scissor lift                       8,300            288            8,588
      ICI Americas, Inc.              Scrubber                          29,640          1,027           30,667
      International Paper Company     Boom lift                         35,934          1,245           37,179
      International Paper Company     Forklifts                         38,783          1,344           40,127
      New York State Electric         PC's/networking                  292,311         10,231          302,542
      Owens Corning Fiberglass        PC's/networking                2,150,797         75,281        2,226,078
      Owens Corning Fiberglass        Peripherals-printers             104,925          3,672          108,597
      Pharmacia Iovision, Inc.        Microscopic equipment            159,650          5,532          165,182
      Polo Ralph Lauren               Personal computers               367,427         12,860          380,287
      Prairie International           Tractor                          443,220         15,358          458,578
      Red Mountain Mining, Inc.       Forklifts                        422,968         14,804          437,772
      Rohr                            Forklifts                         23,886            828           24,714
      Teleflex, Inc.                  PC's/networking                  166,992          5,845          172,837

                                       9

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                    NOTES TO FINANCIAL STATEMENTS, continued
                                   (Unaudited)


2.    Transactions With the General Partner and Affiliates, continued
      ----------------------------------------------------

      EQUIPMENT PURCHASES, continued
                                                                                                      Total
                                                                                  Acquisition       Equipment
                                                                     Cost of        Fees and         Purchase
              Lessee                  Equipment Description         Equipment    Reimbursements       Price
      ----------------------------    ---------------------       ------------   --------------   ------------

      Things Remembered               Point-of-sale               $    809,665      $  28,338     $    838,003
      Thomson Industries, Inc.        Drilling machine                 324,066         11,229          335,295
      Thomson Industries, Inc.        Machine tools                     40,360          1,398           41,758
      Thomson Industries, Inc.        Thread grinder                   251,060          8,699          259,759
      Universal Forest Products       Forklifts                         47,580          1,649           49,229
      Versar                          Personal computers                84,712          2,935           87,647
      WPM Inc.                        Construction equipment           444,398         15,554          459,952
                                                                  ------------      ---------     ------------

                                                                  $ 15,071,149      $ 524,305     $ 15,595,454
                                                                  ============      =========     ============

</TABLE>

      As of June 30,  1998,  the general  partner had  identified  approximately
      $500,000 of equipment that satisfied the Partnership's investment criteria
      and is expected to be acquired during the remainder of 1998.

                                       10

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

Item 2:  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

Results of Operations
---------------------

Presented below are schedules  (prepared  solely to facilitate the discussion of
results of  operations  that  follows)  showing  condensed  statements of income
categories and analyses of changes in those  condensed  categories  derived from
the Statements of Income:

<TABLE>
<CAPTION>

                                                Condensed Statements                       Condensed Statements
                                                   of Income for         The Effect on         of Income for        The Effect on
                                                 the Three Months         Net Income          the Six Months          Net Income
                                                   Ended June 30,         of Changes          Ended June 30,          of Changes
                                            ---------------------------     Between     --------------------------      Between
                                                1998           1997         Periods         1998          1997          Periods
                                            ------------   ------------  -------------  -----------  -------------  -------------

<S>                                         <C>            <C>           <C>            <C>           <C>           <C>         
Leasing margin                               $   563,677    $ 248,759     $ 314,918      $ 1,172,717   $  442,245    $   730,472
Equipment sales margin                            52,890            -        52,890           79,985            -         79,985
Interest income                                   26,441       45,829       (19,388)          91,238       95,807         (4,569)
Management fees paid to general partner         (110,146)     (60,585)      (49,561)        (197,639)     (90,698)      (106,941)
Direct services from general partner             (47,278)     (19,238)      (28,040)         (73,627)     (41,410)       (32,217)
General and administrative                       (49,196)     (36,748)      (12,448)         (90,365)     (72,625)       (17,740)
Provision for losses                             (25,000)           -       (25,000)         (25,000)           -        (25,000)
                                             -----------    ---------     ---------      -----------   ----------    -----------

Net income                                   $   411,388    $ 178,017     $ 233,371      $   957,309   $  333,319    $   623,990
                                             ===========    =========     =========      ===========   ==========    ===========
</TABLE>

LEASING MARGIN

Leasing margin consists of the following:

<TABLE>
<CAPTION>

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

<S>                                   <C>            <C>            <C>            <C>        
Operating lease rentals                $ 4,848,638    $ 2,842,519    $ 9,170,800    $ 4,348,365
Direct finance lease income                 46,986         72,160        135,333        100,282
Depreciation                            (3,942,243)    (2,305,959)    (7,425,010)    (3,497,553)
Interest on discounted lease rentals      (389,704)      (359,961)      (708,406)      (508,849)
                                       -----------    -----------    -----------    -----------

   Leasing margin                      $   563,677    $   248,759    $ 1,172,717    $   442,245
                                       ===========    ===========    ===========    ===========

   Leasing margin ratio                         12%             9%            13%            10%
                                                ==              =             ==             ==
</TABLE>


All  components of leasing margin  increased due to growth in the  Partnership's
lease portfolio.  As the lease portfolio  increases in size, it is expected that
the  leasing  margin  ratio  will also  vary due to  changes  in the  portfolio,
including, among other things, the mix of operating leases versus direct finance
leases,  the average  maturity of leases  comprising the portfolio,  the average
residual  value of leases in the portfolio,  and the amount of discounted  lease
rentals financing the portfolio.


                                       11

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

Item 2:  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued


Results of Operations, continued
---------------------

LEASING MARGIN, continued

The  ultimate   profitability  of  the  Partnership's  leasing  transactions  is
dependent in part on interest  rates at the time the leases are  originated,  as
well as future  equipment values and on-going lessee  creditworthiness.  Because
leasing is an alternative  to financing  equipment  purchases  with debt,  lease
rates tend to rise and fall with interest rates  (although  lease rate movements
generally lag interest rate changes in the capital markets).

INTEREST INCOME

Interest  income  decreased due to a decrease in invested cash.  Interest income
varies  due  to (1)  the  amount  of  cash  available  for  investment  (pending
distribution or equipment  purchases) and (2) the interest rate on such invested
cash.

EXPENSES

Management   fees,   direct  services  from  general  partner  and  general  and
administrative  expenses  increased  due to  growth in the  Partnership's  lease
portfolio.

PROVISION FOR LOSSES

The  remarketing  of  equipment  for an amount  greater  than its book  value is
reported as equipment  sales margin (if the equipment is sold) or leasing margin
(if the equipment is re-leased). The realization of less than the carrying value
of equipment (which is typically not known until  remarketing  subsequent to the
initial lease termination has occurred) is recorded as provision for losses.

Residual values are established equal to the estimated value to be received from
the equipment following termination of the lease. In estimating such values, the
Partnership considers all relevant facts regarding the equipment and the lessee,
including,  for  example,  the  likelihood  that the lessee  will  re-lease  the
equipment.  The nature of the  Partnership's  leasing  activities is that it has
credit  exposure and residual value exposure and,  accordingly,  in the ordinary
course of business,  it will incur losses from those exposures.  The Partnership
performs  on-going   quarterly   assessments  of  its  assets  to  identify  any
other-than-temporary  losses in value. The Partnership  recorded a provision for
loss of $25,000 for the three months  ended June 30, 1998  related  primarily to
lessees returning equipment to the Partnership.






                                       12

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

Item 2:  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued


Liquidity & Capital Resources
-----------------------------

The  Partnership  was  formed on  December  18,  1995.  On April 16,  1996,  the
Partnership commenced offering 500,000 Class A limited partner units at $100 per
unit for sale to investors.  The Partnership reached its limit of $50 million in
unit sales on February 9, 1998.

A summary of the  Partnership's  offering  activities  from the  commencement of
operations to June 30, 1998 is presented below:

  Class A limited partnership units sold                                500,000
                                                                   ============

  Gross offering proceeds                                          $ 50,000,000
  Sales commissions                                                  (5,000,000)
  Non-accountable organization and offering expenses reimbursement   (2,000,000)
  Due diligence expenses                                               (229,152)
                                                                   ------------

      Net offering proceeds                                        $ 42,770,848
                                                                   ============

  Class B limited partner (CAII) cash contribution                 $    500,000
                                                                   ============

A summary of the Partnership's offering activities for the six months ended June
30, 1998 is presented below:

  Class A limited partnership units sold                                 43,367
                                                                   ============

  Gross offering proceeds                                          $  4,336,754
  Sales commissions                                                    (433,676)
  Non-accountable organization and offering expenses reimbursement     (173,470)
  Due diligence expenses                                                (75,631)
                                                                   ------------

      Net offering proceeds                                        $  3,653,977
                                                                   ============

     Class B limited partner (CAII) cash contribution                    40,000
                                                                   ============

The Partnership funds its operating activities principally with cash from rents,
discounted  lease  rentals  (non-recourse  debt),  interest  income and sales of
off-lease  equipment.  Available cash and cash reserves of the  Partnership  are
invested  in  short-term   government  securities  pending  the  acquisition  of
equipment or distribution to the partners.




                                       13

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

Item 2:  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued


Liquidity & Capital Resources, continued
-----------------------------

During the six months ended June 30, 1998, the  Partnership  acquired  equipment
subject  to  leases  with a  total  purchase  price  of  $15,595,454  (including
$2,454,015  of  discounted  lease  rentals).  As of June 30,  1998,  the general
partner had  identified  approximately  $500,000 of  additional  equipment  that
satisfied the Partnership's  acquisition criteria and is expected to be acquired
during the remainder of 1998.

During the six months ended June 30,  1998,  the  Partnership  declared and paid
distributions to the Class A limited  partners of $2,579,499.  A portion of such
distributions is expected to constitute a return of capital.  Distributions  may
be  characterized  for tax,  accounting  and  economic  purposes  as a return of
capital,  a return on  capital or a portion  of both.  The  portion of each cash
distribution by a partnership which exceeds its net income for the fiscal period
may be deemed a return of capital for accounting  purposes.  However,  the total
percentage  of a  partnership's  return  on  capital  over its life will only be
determined  after all  residual  cash flows  (which  include  proceeds  from the
re-leasing and sale of equipment)  have been realized at the  termination of the
Partnership.  For the six months ended June 30, 1998,  approximately  64% of the
cash distributions paid to the partners of the Partnership  constituted a return
of capital for accounting purposes. This percentage may not be reflective of the
percentage  of  distributions  that  constitutes  a  return  of  capital  at any
subsequent point in time.

The general partner believes that the Partnership will generate  sufficient cash
flows  from  operations  during  the  remainder  of 1998,  to (1)  meet  current
operating  requirements,  (2) fund  cash  distributions  to both the Class A and
Class B limited  partners at  annualized  rates of 10.5%  (portions of which are
expected to  constitute  returns of  capital),  and (3)  reinvest in  additional
equipment under leases,  provided that suitable  equipment can be identified and
acquired.

YEAR 2000 ISSUES

An affiliate provides accounting and other  administrative  services,  including
data  processing  services to the  Partnership.  The  affiliate  has conducted a
comprehensive  review of its computer  systems to identify systems that could be
affected  by the Year 2000  issue.  The Year 2000 issue  results  from  computer
programs  being  written  using  two  digits  rather  than  four to  define  the
applicable year.  Certain computer programs which have  time-sensitive  software
could  recognize  a date using "00" as the year 1900  rather than the year 2000.
This could result in major system  failures or  miscalculations.  Certain of the
affiliates's  software  have already been  updated to software  which  correctly
accounts for the Year 2000.  In addition,  the  affiliate is engaged in a system
conversion, whereby the affiliates's main lease tracking and accounting software
is  being  replaced  with new  systems  which  will  account  for the Year  2000
correctly.  The general  partner does not expect any other changes  required for
the Year 2000 to have a material effect on the financial  position or results of
operations of the Partnership.  In addition, the general partner does not expect
any Year 2000 issues  relating  to  customers  and vendors  will have a material
effect on its financial  position or results of  operations of the  Partnership.
Costs  incurred  by the  Partnership  to  address  the Year 2000 issue have been
immaterial.

                                       14

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                    PART II.

                                OTHER INFORMATION



Item 1.  Legal Proceedings

         The  Partnership  is  not  a  party  to any  material legal proceedings
         outside the ordinary course of its business.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  None.

         (b)  The  Partnership  did not file any  reports on Form 8-K during the
              quarter ended June 30, 1998.


                                       15

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                    Signature



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



                                    CAPITAL PREFERRED YIELD FUND-IV, L.P.
 
                                    By:   CAI Equipment Leasing V Corp.


Dated:   August 13, 1998            By:   /s/Anthony M. DiPaolo
                                          --------------------------------
                                          Anthony M. DiPaolo
                                          Senior Vice President




                                       16