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, 1999
                               -------------------------------------------------

                                       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 16

                               Page 1 of 17 Pages


<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          Quarterly Report on Form 10-Q
                              For the Quarter Ended
                                  June 30, 1999


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



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

            Balance Sheets - June 30, 1999 and December 31, 1998              3

            Statements of Income - Three and Six Months Ended
            June 30, 1999 and 1998                                            4

            Statements of Cash Flows - Six months Ended
            June 30, 1999 and 1998                                            5

            Notes to Financial Statements                                    6-9

  Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations                            10-14

  Item 3.   Quantitative and Qualitative Disclosures About Market Risk       14


PART II.  OTHER INFORMATION

  Item 1.   Legal Proceedings                                                15

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

            Exhibits                                                         16

            Signature                                                        17


                                        2

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                 BALANCE SHEETS




                                     ASSETS

                                                      June 30,      December 31,
                                                        1999            1998
                                                     -----------    ------------
                                                     (Unaudited)


Cash and cash equivalents                            $ 1,171,017     $ 2,634,551
Accounts receivable, net                                 398,957         465,374
Receivable from related party                             50,356         216,074
Equipment held for sale or re-lease                      397,257         410,599
Net investment in direct finance leases                3,238,399       3,810,382
Leased equipment, net                                 45,737,987      47,340,855
                                                     -----------     -----------

Total assets                                         $50,993,973     $54,877,835
                                                     ===========     ===========


                       LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
  Accounts payable and accrued liabilities           $ 1,202,698     $ 1,080,333
  Payables to affiliates                                  74,824          46,652
  Rents received in advance                              693,060         597,415
  Distributions payable to partners                      496,771         497,346
  Discounted lease rentals                            13,129,452      15,708,835
                                                     -----------     -----------

Total liabilities                                     15,596,805      17,930,581
                                                     -----------     -----------

Partners' capital:
  General partner                                              -               -
  Limited partners:
    Class A                                           34,971,942      36,507,167
    Class B                                              425,226         440,087
                                                     -----------     -----------

Total partners' capital                               35,397,168      36,947,254
                                                     -----------     -----------

Total liabilities and partners' capital              $50,993,973     $54,877,835
                                                     ===========     ===========




   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,
                                             ----------------------------        ----------------------------
                                                1999              1998              1999              1998
                                             ----------        ----------        ----------        ----------
<S>                                         <C>               <C>               <C>               <C>
Revenue:
  Operating lease rentals                    $4,677,802        $4,848,638        $9,378,255        $9,170,800
  Direct finance lease income                    65,198            46,986           142,166           135,333
  Equipment sales margin                         39,009            52,890            51,580            79,985
  Interest income                                21,430            26,441            45,883            91,238
                                             ----------        ----------        ----------        ----------
Total revenue                                 4,803,439         4,974,955         9,617,884         9,477,356
                                             ----------        ----------        ----------        ----------

Expenses:
  Depreciation                                3,665,450         3,942,243         7,416,524         7,425,010
  Management fees paid to general partner       106,734           110,146           213,171           197,639
  Direct services from general partner           49,359            47,278            97,129            73,627
  General and administrative                     73,144            49,196           128,161            90,365
  Interest on discounted lease rentals          241,649           389,704           497,339           708,406
  Provision for losses                           25,000            25,000           100,000            25,000
                                             ----------        ----------        ----------        ----------
Total expenses                                4,161,336         4,563,567         8,452,324         8,520,047
                                             ----------        ----------        ----------        ----------

Net income                                   $  642,103        $  411,388        $1,165,560        $  957,309
                                             ==========        ==========        ==========        ==========

Net income allocated:
  To the general partner                     $   13,301        $   14,067        $   26,607        $   33,845
  To the Class A limited partners               622,514           393,302         1,127,564           914,122
  To the Class B limited partner                  6,288             4,019            11,389             9,342
                                             ----------        ----------        ----------        ----------
                                             $  642,103        $  411,388        $1,165,560        $  957,309
                                             ==========        ==========        ==========        ==========

Net income per weighted average Class A
  limited partner unit outstanding           $     1.25        $      .79        $     2.27        $     1.86
                                             ==========        ==========        ==========        ==========

Weighted average Class A limited partner
  units outstanding                             496,773           497,640           496,808           491,500
                                             ==========        ==========        ==========        ==========

</TABLE>



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

                                        4

<PAGE>



                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                         Six Months Ended
                                                                  ------------------------------
                                                                    June 30,          June 30,
                                                                      1999              1998
                                                                  ------------      ------------

<S>                                                              <C>               <C>
Net cash provided by operating activities                         $ 10,729,881      $  8,990,088
                                                                  ------------      ------------

Cash flows from investing activities:
  Purchases of equipment on operating leases from affiliate         (4,153,246)      (12,188,475)
  Investment in direct finance leases, acquired from affiliate        (563,525)         (952,964)
                                                                  ------------      ------------
Net cash used in investing activities                               (4,716,771)      (13,141,439)
                                                                  ------------      ------------

Cash flows from financing activities:
  Proceeds from Class A capital contributions                                -         4,336,754
  Proceeds from Class B capital contributions                                -            40,000
  Proceeds from discounted lease rentals                                     -         3,994,817
  Principal payments on discounted lease rentals                    (4,760,423)       (4,288,189)
  Redemptions of Class A limited partner units                         (54,927)         (190,434)
  Sales commissions paid to affiliate in connection
    with the sale of Class A limited partner units                           -          (434,326)
  Non-accountable organization and offering expenses
    reimbursed to the general partner in connection
    with the sale of Class A limited partner units                           -          (317,346)
  Distributions to partners                                         (2,661,294)       (3,055,946)
                                                                  ------------      ------------

Net cash (used in)/provided by financing activities                 (7,476,644)           85,330
                                                                  ------------      ------------

Net decrease in cash and cash equivalents                           (1,463,534)       (4,066,021)

Cash and cash equivalents at beginning of period                     2,634,551         4,676,747
                                                                  ------------      ------------

Cash and cash equivalents at end of period                        $  1,171,017      $    610,726
                                                                  ============      ============

Supplemental disclosure of cash flow information:
  Interest paid on discounted lease rentals                       $    490,044      $    708,406
Supplemental disclosure of noncash investing and
financing activities:
  Discounted lease rentals assumed in equipment acquisitions         2,181,040         2,454,015
  Reduction in Partner's capital accounts for commissions and
    costs payable to affiliates                                              -            51,673

</TABLE>


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

                                        5

<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,  1998 was  derived  from  the  audited  financial  statements
     included in the  Partnership's  1998 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, 1998 (the "1998
     Form 10-K"), previously filed with the Securities and Exchange Commission.

     RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS

     In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
     Accounting for Derivative  Instruments and Hedging  Activities  ("Statement
     133").  Statement 133  establishes  accounting and reporting  standards for
     derivative  instruments  and for hedging  activities.  It requires  that an
     entity  recognize all  derivatives  as either assets or  liabilities in the
     statement  of  financial  position and measure  those  instruments  at fair
     value. Statement 133 is effective for fiscal years beginning after June 15,
     1999,  with earlier  application  permitted.  The  Partnership  has adopted
     Statement  133 in the first  quarter of 1999.  The adoption has not had any
     impact on its financial reporting.

     In June 1999, the Financial Accounting Standards Board issued SFAS No. 137,
     Accounting for Derivative  Instruments and Hedging Activities - Deferral of
     the Effective  Date of FASB  Statement  133, an Amendment of FASB Statement
     133.  Statement  137  effectively  extends  the  required   application  of
     Statement 133 to fiscal years  beginning  after June 15, 2000, with earlier
     application  permitted.  The Partnership adopted Statement 133 in the first
     quarter of 1999.  The  General  Partner  does not expect  the  adoption  of
     Statement  133 or  Statement  137  to  have  an  impact  on  its  financial
     reporting.

2.   Transactions With the General Partner and 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.  As of June 30,  1999,  management  fees of $28,941 are
     included in payables to affiliates.



                                        6

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (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.  As of June 30, 1999,  direct services from the
     General  Partner in the amount of  $30,826  are  included  in  payables  to
     affiliates.

     GENERAL AND ADMINISTRATIVE EXPENSES

     The General  Partner and an affiliate are reimbursed for the actual cost of
     administrative  expenses incurred on behalf of Partnership per the terms of
     the Partnership Agreement. As of June 30, 1999,  administrative expenses of
     $15,057 are included in payable 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 1999, $50,356 in rents were applied by the General Partner that
     were transferred to the Partnership in July 1999.

     EQUIPMENT PURCHASES

     During the six months ended June 30,  1999,  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>                             <S>                          <C>             <C>              <C>
      Alliance Data                   VSAT's                       $   626,469     $  21,707        $   648,176
      Allied Signal                   Projector                         71,101         2,464             73,565
      Atmel                           SDI analyzer                     497,357        17,233            514,590
      Becton Dickinson                Forklift                         124,232         4,305            128,537
      Consolidated Diesel             Forklift                          44,895         1,556             46,451
      Electronic Payment Service      VSAT's                            72,797         2,522             75,319
      E-Trade                         Office furniture               1,358,668        47,078          1,405,746
      General Motors Corp             Forklift                         402,034        13,930            415,964
      General Motors Corp             Material handling                106,735         3,698            110,433
      General Motors Corp             Scrubber                         293,205        10,160            303,365
      General Motors Corp             Sweeper                           85,739         2,943             88,682
      General Motors Corp             Tow tractor                        5,726           198              5,924
      ICI American Holdings           Computers                         17,303           600             17,903
      McGraw Hill                     Computer equipment                17,317           600             17,917



                                        7


<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (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
      --------------------------      ---------------------       ------------   --------------    ------------

      McGraw Hill                     Copier                       $    94,964     $   3,291        $    98,255
      McGraw Hill                     Fax machine                        4,193           145              4,338
      McGraw Hill                     Scrubber                          33,917         1,175             35,092
      Schratter Foods                 Forklift                         206,775         7,165            213,940
      Thomson                         Machine tools                    178,954         6,201            185,155
      TRW                             Computers                         81,061         2,809             83,870
      Geico                           Servers                           68,723         2,381             71,104
      API Universal Foils             Manufacturing equipment        2,274,668        78,817          2,353,485
                                                                   -----------     ---------        -----------

                                                                   $ 6,666,833     $ 230,978        $ 6,897,811
                                                                   ===========     =========        ===========

</TABLE>


      As of June 30, 1999, the general partner had identified  approximately  $4
      million of equipment that satisfied the Partnership's  investment criteria
      and is expected to be acquired during the remainder of 1999.

3.    Year 2000
      ---------

      An  affiliate  provides  accounting  and  other  administrative  services,
      including data processing  services to the Partnership.  The affiliate has
      conducted a comprehensive  review of its internal  information  technology
      ("IT") 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.  The affiliate is in
      the process of  upgrading or replacing  all  components  of its IT systems
      which were  identified  as being  affected by the Year 2000 issue.  At the
      present time,  the  affiliate  has  completed  upgrades and testing of the
      upgrades  for  all  components  of  its  IT  systems  except  its  primary
      application  software which controls the partnership's  financial records,
      asset  management  detail,  and billing  records.  The affiliate has fully
      identified  all aspects of the  application  software which have Year 2000
      issues and has  commenced  the  process of  upgrading  the  software.  The
      affiliate  expects  that the new  upgrades  will be fully  operational  by
      December 31, 1999,  and therefore will be fully Year 2000  compliant.  The
      affiliate does not expect any other changes  required for the Year 2000 to
      have a material effect on its financial position or results of operations.
      As such, the affiliate has not developed any specific contingency plans in
      the event it fails to complete the upgrades by December 31, 1999. However,
      should the affiliate be unsuccessful in completing the necessary  upgrades
      by  December  31,  1999,  the  affiliate  does not expect  there will be a
      material adverse effect on the Partnership's financial position or results
      of  operations.  There  could be a  negative  impact on the  Partnership's


                                        8

<PAGE>


                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


3.    Year 2000
      ---------

      ability to realize  expected cash flows from leased  equipment on a timely
      basis due to billing or collection  problems  which could arise related to
      Year 2000 issues.  While it is expected that the Partnership's  ability to
      ultimately realize all expected cash flows will not be impacted, delays in
      collecting  cash  flows  would  have a  negative  impact on the  timing of
      distributions to partners. Because the cost of addressing Year 2000 issues
      are borne by the affiliate,  it is expected that the costs associated with
      Year 2000 readiness will not be material to the partnership. The affiliate
      does not expect any Year 2000 issues relating to its customers and vendors
      to  have a  material  effect  on its  financial  position  or  results  of
      operations, or on its ability to provide services to the Partnership.

                                        9

<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  items of income and expense and
changes in those items derived from the Statements of Income:

<TABLE>
<CAPTION>

                                                Three Months                            Six Months
                                               Ended June 30,                         Ended June 30,
                                         -----------------------                 -------------------------
                                             1999        1998          Change       1999          1998          Change
                                         -----------  ----------     ----------  -----------   -----------    ---------

<S>                                     <C>          <C>            <C>         <C>           <C>            <C>

Leasing margin                           $   835,901  $  563,677     $  272,224  $ 1,606,558   $ 1,172,717    $ 433,841
Equipment sales margin                        39,009      52,890        (13,881)      51,580        79,985      (28,405)
Interest income                               21,430      26,441         (5,011)      45,883        91,238      (45,355)
Management fees paid to general partner     (106,734)   (110,146)         3,412     (213,171)     (197,639)     (15,532)
Direct services from general partner         (49,359)    (47,278)        (2,081)     (97,129)      (73,627)     (23,502)
General and administrative expenses          (73,144)    (49,196)       (23,948)    (128,161)      (90,365)     (37,796)
Provision for losses                         (25,000)    (25,000)             -     (100,000)      (25,000)     (75,000)
                                         -----------  ----------     ----------  -----------   -----------    ---------
Net income                               $   642,103  $  411,388     $  230,715  $ 1,165,560   $   957,309    $ 208,251
                                         ===========  ==========     ==========  ===========   ===========    =========

</TABLE>

LEASING MARGIN

Leasing margin consists of the following:

<TABLE>
<CAPTION>

                                            Three Months Ended          Six Months Ended
                                                 June 30,                   June 30,
                                       --------------------------   --------------------------
                                          1999            1998         1999           1998
                                       -----------    -----------   -----------    -----------

<S>                                   <C>            <C>           <C>            <C>
Operating lease rentals                $ 4,677,802    $ 4,848,638   $ 9,378,255    $ 9,170,800
Direct finance lease income                 65,198         46,986       142,166        135,333
Depreciation                            (3,665,450)    (3,942,243)   (7,416,524)    (7,425,010)
Interest on discounted lease rentals      (241,649)      (389,704)     (497,339)      (708,406)
                                       -----------    -----------   -----------    -----------
   Leasing margin                      $   835,901    $   563,677   $ 1,606,558    $ 1,172,717
                                       ===========    ===========   ===========    ===========

   Leasing margin ratio                         18%            12%           17%            13%
                                       ===========    ===========   ===========    ===========

</TABLE>

Operating  lease  rentals have  increased for the six months ended June 30, 1999
compared to the corresponding period of 1998 due to growth in the portfolio.  In
the second quarter of 1999,  however,  operating lease rentals and  depreciation
decreased  compared  to  the  second  quarter  of  1998  primarily  due  to  the
termination of rental income and associated  depreciation on certain leases that
reached maturity during the second quarter 1999. Depreciation decreased slightly
for the six months ended June 30, 1999  compared to the same period for 1998 due
to a higher average residual value for the remaining lease  portfolio.  Although
the size of the direct  finance lease  portfolio has  decreased,  direct finance
lease income has  increased  for the three and six months ended June 30, 1999 as
compared to the three and six months  ended June 30,  1998 due to lower  average
residual  values of the leases  comprising the direct  finance lease  portfolio.
Interest on  discounted  lease  rentals  decreased  for the three and six months
ended June 30, 1999 compared to the three and six months ended June 30, 1998 due
to a net reduction in non-recourse debt.

                                       10

<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

Leasing margin ratio  fluctuates based upon (i) the mix of direct finance leases
and operating  leases,  (ii)  remarketing  activities,  (iii) the method used to
finance leases added to the Partnership's lease portfolio, and (iv) the relative
age of lease types in the  portfolio.  Leasing  margin and the  related  leasing
margin ratio for an operating  lease financed with  non-recourse  debt increases
during the term of the lease since rents and  depreciation  are typically  fixed
while interest  expense declines as the related  non-recourse  debt principal is
repaid.

The  ultimate   profitability  of  the  Partnership's  leasing  transactions  is
dependent  in part on  interest  rates at the time the  leases  are  originated,
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).

EQUIPMENT SALES MARGIN

Equipment sales margin consists of the following:

                                 Three Months Ended         Six Months Ended
                                      June 30,                  June 30,
                               ----------------------    ----------------------
                                 1999         1998         1999         1998
                               ---------    ---------    ---------    ---------

Equipment sales revenue        $ 313,035    $ 106,331    $ 691,266    $ 205,079
Cost of equipment sales         (274,026)     (53,441)    (639,686)    (125,094)
                               ---------    ---------    ---------    ---------

  Equipment sales margin       $  39,009    $  52,890    $  51,580    $  79,985
                               =========    =========    =========    =========

Equipment  sales margin is affected by the volume and  composition  of equipment
that becomes available for sale. Some of the  Partnership's  initial leases have
expired, and the equipment is either being re-leased or sold to the lessee or to
third  parties.  Equipment  sales margin  decreased for the three and six months
ended June 30, 1999  compared to the same  period in 1998  primarily  due to the
composition of equipment that was sold.

INTEREST INCOME

Interest  income  decreased  for the three and six months  ended  June 30,  1999
compared  to the three and six months  ended June 30,  1998 due to a decrease in
invested  cash.  Interest  income varies due to (1) the amount of cash available
for  investment  (pending  distribution  to partners or  investment in equipment
purchases) and (2) the interest rate on such invested cash.



                                       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
---------------------

EXPENSES

Management  fees are earned on gross rents  received and will  fluctuate  due to
variances in cash flow.  Management fees paid to general  partner  increased for
the six months ended June 30, 1999 compared to the six months ended June 30,1998
primarily due to an increase in rental payments received. The slight decrease in
management  fees paid to the general partner for the three months ended June 30,
1999  compared  to the  corresponding  period  of 1998  was  primarily  due to a
decrease in rental payments received on operating leases for the quarter. Direct
services from general partner  increased for the three and six months ended June
30,  1999  compared  to the three and six months  ended June 30,  1998 due to an
increase in remarketing  activities  associated  with equipment  returned to the
Partnership  at  lease   maturity.   The  primary   components  of  general  and
administrative  expenses are data processing,  advertising,  audit and tax fees,
insurance,  and state income taxes. All components of general and administrative
expenses  except data  processing  increased  for the three and six months ended
June 30,  1999 as  compared  to the three and six  months  ended  June 30,  1998
primarily due to growth in the portfolio. In addition,  there was an increase in
advertising  costs  related to the  remarketing  of  equipment  returned  to the
partnership at lease maturity.

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  occurs when the  equipment  is  remarketed  subsequent  to
initial lease termination) 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 such that it
has credit exposure and residual value exposure and will incur losses from those
exposures in the ordinary course of business. The Partnership performs quarterly
assessments  of the  estimated  residual  value of its  assets to  identify  any
other-than-temporary  losses in value. The Partnership  recorded a provision for
loss of $100,000  for the six months  ended June 30, 1999  related  primarily to
equipment returned to the Partnership at lease maturity.


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

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 partners.


                                       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, continued
-----------------------------

During the six months ended June 30, 1999, the  Partnership  acquired  equipment
subject to leases  with a total  purchase  price of  $6,897,811.  As of June 30,
1999, the general partner had identified  approximately $4 million of additional
equipment that satisfied the Partnership's  acquisition criteria and is expected
to be acquired during the remainder of 1999.

During  the  six  months  ended  June  30,  1999,   the   Partnership   declared
distributions to the partners of $2,660,719  ($496,771 of which was paid in July
1999). A substantial  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 which exceeds its net income for the
fiscal  period  may be  deemed a return  of  capital  for  accounting  purposes.
However,  the total percentage of the  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.

The general partner believes that the Partnership will generate  sufficient cash
flows  from  operations  during  the  remainder  of 1999,  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 internal  information  technology ("IT") 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.  The  affiliate is in the process of upgrading or replacing all
components of its IT systems which were identified as being affected by the Year
2000 issue.  At the present  time,  the  affiliate  has  completed  upgrades and
testing of the upgrades for all  components of its IT systems except its primary
application software which controls the partnership's  financial records,  asset
management detail,  and billing records.  The affiliate has fully identified all
aspects  of the  application  software  which  have  Year  2000  issues  and has
commenced the process of upgrading the software.  The affiliate expects that the
new upgrades will be fully  operational by December 31, 1999, and therefore will
be fully Year 2000  compliant.  The affiliate  does not expect any other changes
required for the Year 2000 to have a material  effect on its financial  position
or results of operations.  As such, the affiliate has not developed any specific
contingency plans in the event it fails to complete the upgrades by December 31,
1999. However,  should the affiliate be unsuccessful in completing the necessary
upgrades by December 31,  1999,  the  affiliate  does not expect there will be a
material adverse effect on the  Partnership's  financial  position or results of
operations.  There could be a negative  impact on the  Partnership's  ability to
realize  expected  cash flows from  leased  equipment  on a timely  basis due to
billing or  collection  problems  which could arise related to Year 2000 issues.


                                       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
-----------------------------

YEAR 2000 ISSUES

While it is expected that the  Partnership's  ability to ultimately  realize all
expected cash flows will not be impacted,  delays in collecting cash flows would
have a negative impact on the timing of distributions  to partners.  Because the
cost of addressing  Year 2000 issues are borne by the affiliate,  it is expected
that the costs  associated  with Year 2000 readiness will not be material to the
partnership.  The affiliate does not expect any Year 2000 issues relating to its
customers  and vendors to have a material  effect on its  financial  position or
results of operations, or on its ability to provide services to the Partnership.

New Accounting Pronouncements
-----------------------------

In June 1998,  the  Financial  Accounting  Standards  Board issued SFAS No. 133,
Accounting for Derivative  Instruments and Hedging Activities ("Statement 133").
Statement 133  establishes  accounting  and reporting  standards for  derivative
instruments and for hedging activities. It requires that an entity recognize all
derivatives  as either  assets or  liabilities  in the  statement  of  financial
position and measure those instruments at fair value. Statement 133 is effective
for  fiscal  years  beginning  after June 15,  1999,  with  earlier  application
permitted.  The  Partnership  has adopted  Statement 133 in the first quarter of
1999. The adoption has not had any impact on its financial reporting.

In June 1999,  the  Financial  Accounting  Standards  Board issued SFAS No. 137,
Accounting for Derivative  Instruments and Hedging  Activities - Deferral of the
Effective  Date of FASB  Statement  133, an  Amendment  of FASB  Statement  133.
Statement 137 effectively  extends the required  application of Statement 133 to
fiscal years beginning after June 15, 2000, with earlier application  permitted.
The Partnership  adopted Statement 133 in the first quarter of 1999. The General
Partner does not expect the adoption of Statement  133 or Statement  137 to have
an impact on its financial reporting.

"Safe Harbor"  Statement Under the Private  Securities  Litigation Reform Act of
--------------------------------------------------------------------------------
1995
----

The statements  contained in this report which are not  historical  facts may be
deemed to contain  forward-  looking  statements  with  respect  to events,  the
occurrence of which involve risks and uncertainties,  and are subject to factors
that could cause actual future  results to differ both  adversely and materially
from currently anticipated results, including,  without limitation, the level of
lease originations, realization of residual values, the availability and cost of
financing  sources and the ultimate  outcome of any contract  disputes.  Certain
specific risks associated with particular aspects of the Partnership's  business
are  discussed  under  Results of Operations in this report and under Results of
Operations in the 1998 Form 10-K when and where applicable.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The partnership's  leases with equipment users are non-cancelable and have lease
rates which are fixed at lease inception.  The partnership  finances its leases,
in part, with  discounted  lease rentals.  Discounted  lease rentals are a fixed
rate debt.  The  partnerships  other  assets and  liabilities  are also at fixed
rates.  Consequently  the  partnership has no interest rate risk or other market
risk exposure.



                                       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)  Exhibits

         (b)  The  Partnership did not file  any reports on Form 8-K  during the
              quarter ended June 30, 1999.



                                       15

<PAGE>




Item No.                          Exhibit Index

   27        Financial Data Schedule



                                       16

<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 16, 1999                  By:  /s/Anthony M. DiPaolo
                                              ----------------------------------
                                              Anthony M. DiPaolo
                                              Senior Vice President


                                       17