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 September 30, 2002
                               ------------------

                                       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.)


  2750 South Wadsworth Blvd., C-200
          Denver, Colorado                                              80227
----------------------------------------                             ----------
(Address of principal executive offices)                             (Zip Code)

        Registrant's telephone number, including area code (720) 963-9600
                                                           --------------


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 17

                               Page 1 of 20 Pages
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          Quarterly Report on Form 10-Q
                              For the Quarter Ended
                               September 30, 2002


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



PART I.  FINANCIAL INFORMATION                                              PAGE
                                                                            ----

     Item 1.  Financial Statements (Unaudited)

              Balance Sheets - September 30, 2002 and December 31, 2001       3

              Statements of Operations - Three and Nine Months Ended
              September 30, 2002 and 2001                                     4

              Statements of Cash Flows - Nine Months Ended
              September 30, 2002 and 2001                                     5

              Notes to Financial Statements                                6 - 9

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

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk      15

     Item 4.  Controls and Procedures                                         15

PART II. OTHER INFORMATION

     Item 1.  Legal Proceedings                                               16

     Item 6.  Exhibits and Reports on Form 8-K                                16

              Signatures                                                     18

              Certifications                                               19-20

                                       2
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                 BALANCE SHEETS



                                     ASSETS

                                                     September 30,  December 31,
                                                         2002           2001
                                                     -------------  ------------
                                                      (Unaudited)


Cash and cash equivalents                             $ 3,271,955    $ 3,917,475
Accounts receivable, net                                   99,922      1,944,681
Equipment held for sale or re-lease                       438,990        918,597
Net investment in direct finance leases                 9,014,205      6,859,456
Leased equipment, net                                  36,499,060     33,272,181
                                                      -----------    -----------

Total assets                                          $49,324,132    $46,912,390
                                                      ===========    ===========


                       LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
     Accounts payable and accrued liabilities         $ 1,074,041    $ 2,511,585
     Payables to affiliates                               130,360         73,203
     Rents received in advance                            185,672         40,473
     Distributions payable to partners                    623,391        488,648
     Discounted lease rentals                          27,750,413     20,141,516
                                                      -----------    -----------

Total liabilities                                      29,763,877     23,255,425
                                                      -----------    -----------

Partners' capital:
     General partner                                         --             --
     Limited partners:
         Class A                                       19,285,568     23,343,893
         Class B                                          274,687        313,072
                                                      -----------    -----------

Total partners' capital                                19,560,255     23,656,965
                                                      -----------    -----------

Total liabilities and partners' capital               $49,324,132    $46,912,390
                                                      ===========    ===========

                 See accompanying notes to financial statements.

                                       3
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                         Three Months Ended             Nine Months Ended
                                                            September 30,                 September 30,
                                                   ----------------------------    ----------------------------
                                                         2002           2001            2002            2001
                                                         ----           ----            ----            ----
<S>                                                <C>             <C>             <C>             <C>
Revenue:
  Operating lease rentals                          $  4,344,436    $  4,278,720    $ 12,017,668    $ 13,167,055
  Direct finance lease income                           134,371         177,824         377,979         582,571
  Equipment sales margin                                 96,685         191,863         417,055         301,305
  Interest income                                        11,672          20,734          78,304          87,907
                                                   ------------    ------------    ------------    ------------

Total revenue                                         4,587,164       4,669,141      12,891,006      14,138,838
                                                   ------------    ------------    ------------    ------------

Expenses:
  Depreciation                                        3,656,723       3,974,196       9,661,319      10,502,233
  Management fees to general partner                    105,601          98,462         289,278         309,987
  Direct services from general partner                   76,229          77,520         236,280         180,906
  General and administrative                             89,899          72,985         383,689         495,467
  Interest on discounted lease rentals                  469,679         298,629       1,286,902         983,645
  Provision for losses                                  488,000         715,000         893,000       1,365,000
                                                   ------------    ------------    ------------    ------------

Total expenses                                        4,886,131       5,236,792      12,750,468      13,837,238
                                                   ------------    ------------    ------------    ------------

Net income (loss)                                  $   (298,967)   $   (567,651)   $    140,538    $    301,600
                                                   ============    ============    ============    ============

Net income (loss) allocated:
  To the general partner                           $     15,546    $     13,132    $     41,621    $     39,444
  To the Class A limited partners                      (311,368)       (574,975)         97,928         259,534
  To the Class B limited partner                         (3,145)         (5,808)            989           2,622
                                                   ------------    ------------    ------------    ------------

                                                   $   (298,967)   $   (567,651)   $    140,538   $    301,600
                                                   ============    ============    ============   ============

  Net income (loss) per weighted average Class A
       limited partner unit outstanding            $      (0.64)   $      (1.17)   $       0.20   $       0.53
                                                   ============    ============    ============   ============

  Weighted average Class A limited
    partner units outstanding                           485,362         489,676         485,992         490,384
                                                   ============    ============    ============   ============
</TABLE>

                 See accompanying notes to financial statements.

                                       4
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                        Nine Months Ended
                                                                  -----------------------------
                                                                   September 30,  September 30,
                                                                       2002            2001
                                                                       ----            ----

<S>                                                               <C>             <C>
Net cash provided by operating activities                         $  9,787,295    $ 10,966,933
                                                                  ------------    ------------

Cash flows from financing activities:
     Proceeds from discounted lease rentals                          2,348,846       1,653,629
     Principal payments on discounted lease rentals                 (8,679,156)     (8,504,308)
     Redemptions of Class A limited partner units                      (75,006)       (151,252)
     Distributions to partners                                      (4,027,499)     (3,942,324)
                                                                  ------------    ------------

Net cash used in financing activities                              (10,432,815)    (10,944,255)
                                                                  ------------    ------------

Net decrease in cash and cash equivalents                             (645,520)         22,678

Cash and cash equivalents at beginning of period                     3,917,475       3,702,069
                                                                  ------------    ------------

Cash and cash equivalents at end of period                        $  3,271,955    $  3,724,747
                                                                  ============    ============

Supplemental disclosure of cash flow information -Interest
     paid on discounted lease rentals                             $  1,286,902    $    983,645
                                                                  ============    ============
Supplemental disclosure of noncash investing and
     financing activities - Discounted lease rentals assumed in
     equipment acquisitions                                       $ 13,939,207    $  8,633,427
                                                                  ============    ============
</TABLE>

                 See accompanying notes to 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 accounting principles generally accepted in the United
     States of America 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 accounting
     principles generally accepted in the United States of America 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, 2001 was derived from the audited financial statements
     included in the Partnership's 2001 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, 2001 (the "2001
     Form 10-K"), previously filed with the Securities and Exchange Commission.

     Recently Issued Financial Accounting Standards

     In April 2002, the Financial Accounting Standards Board ("FASB") issued
     Statement of Financial Accounting Standards No. 145 ("SFAS 145"),
     "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB
     Statement No. 13, and Technical Corrections". SFAS 145 updates, clarifies
     and simplifies existing accounting pronouncements. SFAS 145 rescinds
     Statement 4, which required all gains and losses from extinguishments of
     debt to be aggregated and, if material, classified as an extraordinary
     item, net of related income tax effect. As a result, the criteria in APB
     Opinion 30 will now be used to classify those gains and losses. Statement
     64 amended Statement 4, and is no longer necessary because Statement 4 has
     been rescinded. Statement 44 was issued to establish accounting
     requirements for the effects of transition to the provisions of the Motor
     Carrier Act of 1980. Because the transition has been completed, Statement
     44 is no longer necessary. SFAS 145 amends Statement 13 to require that
     certain lease modifications that have economic effects similar to
     sale-leaseback transactions be accounted for in the same manner as
     sale-leaseback transactions. This amendment is consistent with the FASB's
     goal of requiring similar accounting treatment for transactions that have
     similar economic effects. SFAS 145 also makes technical corrections to
     existing pronouncements. The Partnership does not believe the adoption of
     SFAS 145 will have a material impact on the Partnership's financial
     position, results of operations or cash flows.

     In July 2002, the FASB issued Statement of Financial Accounting Standards
     No. 146 ("SFAS 146"), "Accounting for Costs Associated With Exit or
     Disposal Activities." SFAS 146 addresses financial accounting and reporting
     for costs associated with exit or disposal activities, and nullifies
     Emerging Issues Task Force Issue No. 94-3 ("EITF 94-3"), "Liability
     Recognition for Certain Employee Termination Benefits and Other Costs to
     Exit an Activity (including Certain Costs Incurred in a Restructuring)".
     SFAS 146 requires recognition of a liability for a cost associated with an
     exit or disposal activity when the liability is incurred, as opposed to
     being recognized at the date an entity commits to an exit plan under EITF
     94-3. SFAS 146 also establishes that fair value is the objective for
     initial measurement of the liability. SFAS 146 is effective for exit or
     disposal activities that are initiated after December 31, 2002, with
     earlier application encouraged.

                                       6
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

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 September 30, 2002, management fees of $26,399
     are included in payables to affiliates.

     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 terms of the
     Partnership Agreement. As of September 30, 2002, direct services from the
     General Partner in the amount of $25,498 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 the Partnership per the terms
     of the Partnership Agreement. As of September 30, 2002, administrative
     expenses of $78,463 are included in payables to affiliates.

     Equipment Purchases

     During the nine months ended September 30, 2002, the Partnership acquired
     the equipment described below from independent third parties as arranged by
     Mishawaka Leasing Company, Inc. (the General Partner):

<TABLE>
<CAPTION>
                                                                                           Total
                                                                      Acquisition         Equipment
                                                     Cost of           Fees and           Purchase
Lessee                    Equipment Description     Equipment        Reimbursements        Price
------                    ---------------------     ---------        --------------        -----

<S>                             <C>                       <C>                <C>                    <C>
Avery Dennison                  Forklifts                 $  317,876         $   11,014             $  328,890
Eye Centers of Florida          Medical                       45,129              1,564                 46,693
Robert Tobin                    Medical                      328,494             11,382                339,876
Hartford Hospital               Medical                      241,578              8,371                249,949
Vision Care                     Medical                      337,648             11,700                349,348
Suffolk Eye                     Medical                       32,760              1,135                 33,895
Saint Raphael                   Medical                       67,441              2,337                 69,778
Lapeer Regional                 Medical                       29,764              1,031                 30,795
Eye Centers of Florida          Medical                      327,951             11,364                339,315
Healthsouth                     Medical                       99,745              3,456                103,201
Grant/Riverside                 Medical                      198,702              6,885                205,587
New Milford Hospital            Medical                       29,328              1,016                 30,344
Eye Surgery Consult.            Medical                       12,998                450                 13,448
Sisters of Charity              Medical                      141,424              4,900                146,324
</TABLE>

                                 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
<TABLE>
<S>                          <C>                           <C>                   <C>                 <C>
Johnson Controls             Forklifts                        38,572              1,200                 39,772
Johnson Controls             Forklifts                       193,296              6,012                199,308
Johnson Controls             Pallet Trucks                   151,991              4,728                156,719
Johnson Controls             Forklifts                        64,368              2,002                 66,370
Johnson Controls             Forklifts                        26,454                946                 27,400
Johnson Controls             Forklifts                        28,036              1,002                 29,038
Johnson Controls             Sweeper/Scrubber                 30,024              1,073                 31,097
Johnson Controls             Forklifts                        38,990              1,394                 40,384
NBC                          Broadcasting                    217,979              8,068                226,047
Michelin                     Forklifts                        72,398              2,660                 75,058
Michelin                     Forklifts                        31,497              1,157                 32,654
Johnson Controls             Forklifts                       163,724              5,857                169,581
Johnson Controls             Forklifts                        57,041              2,041                 59,082
General Motors               Forklifts                     1,389,210             49,846              1,439,056
General Motors               Construction                    643,360             22,730                666,090
General Motors               Forklifts                       329,914             11,634                341,548
General Motors               Crane                           369,441             13,025                382,466
TRW                          Workstations                    296,671                  0                296,671
TRW                          Telecommunications               45,355                  0                 45,355
Communications Test Design   Material Handling               116,793                  0                116,793
Communications Test Design   Forklifts                        22,111                  0                 22,111
Communications Test Design   Forklifts                        85,717                  0                 85,717
Johnson Controls             Forklifts                        48,417                  0                 48,417
Johnson Controls             Forklifts                        28,987                  0                 28,987
Johnson Controls             Forklifts                        22,695                  0                 22,695
Johnson Controls             Forklifts                        25,521                  0                 25,521
Johnson Controls             Forklifts                        57,975                  0                 57,975
Michelin                     Forklifts                        75,152                  0                 75,152
Michelin                     Forklifts                         4,722                  0                  4,722
Michelin                     Forklifts                         4,722                  0                  4,722
Michelin                     Forklifts                        50,860                  0                 50,860
Michelin                     Forklifts                        25,430                  0                 25,430
Michelin                     Forklifts                        79,375                  0                 79,375
Michelin                     Forklifts                        60,504                  0                 60,504
Mississippi Power Co.        Tractors                      1,370,398                  0              1,370,398
NBC                          Broadcasting                  1,035,312                  0              1,035,312
Texas Utilities              Networking                      218,069                  0                218,069
Texas Utilities              Networking                       42,551                  0                 42,551
Texas Utilities              Networking                       43,355                  0                 43,355
Texas Utilities              Telecom - PBX                    78,328                  0                 78,328
Texas Utilities              Telecom - PBX                    48,395                  0                 48,395
Texas Utilities              Printers                         89,395                  0                 89,395
Texas Utilities              Printers                         36,754                  0                 36,754
Texas Utilities              Printers                         37,920                  0                 37,920
Texas Utilities              Printers                         38,625                  0                 38,625
Texas Utilities              Telecommunications              111,287                  0                111,287
</TABLE>

                                       8
<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

<TABLE>
<S>                          <C>                        <C>                   <C>                 <C>
TRW                          Semiconductor                   540,698                  0                540,698
TRW                          Office Furniture                265,336                  0                265,336
TRW                          Office Furniture                 15,064                  0                 15,064
TRW                          Telecommunications              529,153                  0                529,153
General Motors               Trucks                          132,518                  0                132,518
General Motors               Trucks                          344,014                  0                344,014
General Motors               Construction                     56,979                  0                 56,979
General Motors               Machine Tool                     51,072                  0                 51,072
General Motors               Machine Tool                     31,025                  0                 31,025
General Motors               Forklift                        118,990                  0                118,990
General Motors               Forklift                        762,618                  0                762,618
General Motors               Crane                           211,046                  0                211,046
General Motors               Yellow Gear                     104,478                  0                104,478
General Motors               Construction                    853,203                  0                853,203
General Motors               Manufacturing                   196,849                  0                196,849
TRW                          Office Furniture                294,931                  0                294,931
Raytheon Company             Computer Equipment              192,402                  0                192,402
Texas Utilities              Computer Equipment              632,444                  0                632,444
Texas Utilities              Computer Equipment              133,221                  0                133,221
Texas Utilities              Computer Equipment              542,610                  0                542,610
Texas Utilities              Computer Equipment               49,359                  0                 49,359
Texas Utilities              Computer Equipment               12,062                  0                 12,062
Texas Utilities              Computer Equipment               66,510                  0                 66,510
GE Plastics                  Research                         97,343                  0                  97,343
NBC                          Broadcasting                    379,858                  0                379,858
Lockheed Martin              Broadcasting                     11,172                  0                 11,172
Lockheed Martin              Broadcasting                     12,185                  0                 12,185
Lockheed Martin              Broadcasting                     10,465                  0                 10,465
Lockheed Martin              Broadcasting                     21,857                  0                 21,857
TRW                          Office Furniture                114,611                  0                114,611
General Motors               Forklift                         86,899                  0                 86,899
Lockheed Martin              Broadcasting                    321,825                  0                321,825
Lockheed Martin              Broadcasting                    286,211                  0                286,211
Lockheed Martin              Broadcasting                     82,615                  0                 82,615
Northrop Grumman             Printers                        157,524                  0                157,524
Texas Utilities              Computer Equipment              871,312                  0                871,312
                                                        $ 18,848,988          $ 211,980           $ 19,060,968
</TABLE>

      In addition, during the nine months ended September 30, 2002, the
      Partnership reached its Front End Fee Cap, as defined in the Partnership
      Agreement. As such, the Partnership ceased paying acquisition fees during
      the three months ended March 31, 2002 and anticipates that no such fees
      will be paid in future periods.

                                       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                                 Nine Months
                                                    Ended September 30,                        Ended September 30,
                                       ------------------------------------------   ------------------------------------------
                                           2002           2001           Change         2002           2001           Change
                                           ----           ----           ------         ----           ----           ------

<S>                                    <C>            <C>            <C>            <C>            <C>            <C>
Leasing margin                         $   352,405    $   183,719    $   168,686    $ 1,447,426    $ 2,263,748    $  (816,322)
Equipment sales margin                      96,685        191,863        (95,178)       417,055         301,30       5115,750
Interest income                             11,672         20,734         (9,062)        78,304         87,907         (9,603)
Management fees to general partner        (105,601)       (98,462)        (7,139)      (289,278)      (309,987)        20,709
Direct services from general partner       (76,229)       (77,520)         1,291       (236,280)      (180,906)       (55,374)
General and administrative                 (89,899)       (72,985)       (16,914)      (383,689)      (495,467)       111,778
Provision for losses                      (488,000)      (715,000)       227,000       (893,000)    (1,365,000)       472,000
                                       -----------    -----------    -----------    -----------    -----------        -------
  Net income (loss)                    $  (298,967)   $  (567,651)   $   268,684    $   140,538    $   301,600    $  (161,062)
                                       ===========    ===========    ===========    ===========    ===========    ===========
Leasing Margin
</TABLE>

Leasing margin consists of the following:

<TABLE>
<CAPTION>
                                                       Three Months Ended               Nine Months Ended
                                                         September 30,                    September 30,
                                               -----------------------------     -----------------------------
                                                    2002             2001             2002             2001
                                                    ----             ----             ----             ----

<S>                                            <C>              <C>              <C>              <C>
Operating lease rentals                        $  4,344,436     $  4,278,720     $ 12,017,668     $ 13,167,055
Direct finance lease income                         134,371          177,824          377,979          582,571
Depreciation                                     (3,656,723)      (3,974,196)      (9,661,319)     (10,502,233)
Interest expense on discounted lease rentals       (469,679)        (298,629)      (1,286,902)        (983,645)
                                               ------------     ------------     ------------     ------------
   Leasing margin                              $    352,405     $    183,719     $  1,447,426     $  2,263,748
                                               ============     ============     ============     ============

   Leasing margin ratio                                   8%               4%              12%              16%
                                                          =                =               ==               ==
</TABLE>

Operating lease rentals decreased for the nine months ended September 30, 2002
and depreciation decreased for the three and nine months ended September 30,
2002 compared to the same periods of 2001 due to a decrease in the average net
book value of the operating lease portfolio. Operating lease rentals increased
for the three months ended September 30, 2002 compared to the three months ended
September 30, 2001 primarily because of an increase in revenue from leases
entering their remarketing period.

Direct finance lease income decreased for the three and nine months ended
September 30, 2002 compared to the same periods of 2001 (which is
counter-intuitive because the average net book value of the direct finance lease
portfolio increased during the period) primarily because during the periods in
2001, the direct finance lease portfolio included a large, high-yielding
remarketed lease.

                                       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

Interest expense on discounted lease rentals increased for the three and nine
months ended September 30, 2002 compared to the three and nine months ended
September 30, 2001 due to an increase in non-recourse debt outstanding.

Leasing margin ratio varies due to changes in the portfolio including, among
other things, the mix of operating leases versus direct finance leases, the
average maturity of operating leases in the portfolio, the percentage of leases
in the portfolio that have entered their remarketing stage, and the amount of
discounted lease rentals financing the portfolio. Leasing margin ratio increased
for the three months ended September 30, 2002 compared to the three months ended
September 30, 2001 primarily as a result of the increase in remarketed operating
leases discussed above. Leasing margin ration decreased for the nine months
ended September 30, 2002 compared to the nine months ended September 30, 2001
primarily because of the increase in non-recourse debt outstanding discussed
above. Leasing margin ratio for a direct finance lease is fixed over the term of
the lease. However, leasing margin ratio for an operating lease financed with
non-recourse debt increases as the lease matures 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:

<TABLE>
<CAPTION>
                                Three Months Ended             Nine Months Ended
                                  September 30,                   September 30,
                            --------------------------    --------------------------
                                2002           2001           2002           2001
                                ----           ----           ----           ----
<S>                         <C>            <C>            <C>            <C>
Equipment sales revenue     $   381,762    $   476,893    $ 2,299,227    $ 1,783,390
Cost of equipment sales        (285,077)      (285,030)    (1,882,172)    (1,482,085)
                            -----------       --------     ----------     ----------
   Equipment sales margin   $    96,685    $   191,863    $   417,055    $   301,305
                            ===========    ===========    ===========    ===========
</TABLE>

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.

Interest Income

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 paid to the general partner are calculated as a percentage of
rents collected during the respective period.

Direct services from general partner increased for the nine months ended
September 30, 2002 compared to the nine months ended September 30, 2001
primarily due to increased costs related to management's efforts to collect
receivables owed to the Partnership.

General and administrative expenses decreased for the nine months ended
September 30, 2002 compared to the nine months ended September 30, 2001
primarily because the period during 2001 included a) a one-time charge for
software and computer equipment, and b) charges for data processing and a
computer conversion, all of which were related to a change in the ownership of
the general partner.

Provision for Losses

The realization of greater than the carrying value of equipment (which occurs
when the equipment is remarketed subsequent to initial lease termination) 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 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 that, if any, are also recorded as
provision for losses.

The provision for losses of $488,000 and $893,000 recorded during the three and
nine months ended September 30, 2002 related primarily to lower of cost or
market write downs of equipment in inventory in addition to residual value write
downs of leased equipment.

                                       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 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.

During the nine months ended September 30, 2002, the Partnership acquired
equipment subject to leases with a total purchase price of $19,060,968

During the nine months ended September 30, 2002, the Partnership declared
distributions to the Class A limited partners of $4,081,245 ($639,756 of which
was paid in October 2002). 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 that
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 2002, 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.


                                       13
<PAGE>
Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued

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

In April 2002, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 145 ("SFAS 145"), "Rescission of
FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections". SFAS 145 updates, clarifies and simplifies existing
accounting pronouncements. SFAS 145 rescinds Statement 4, which required all
gains and losses from extinguishments of debt to be aggregated and, if material,
classified as an extraordinary item, net of related income tax effect. As a
result, the criteria in APB Opinion 30 will now be used to classify those gains
and losses. Statement 64 amended Statement 4, and is no longer necessary because
Statement 4 has been rescinded. Statement 44 was issued to establish accounting
requirements for the effects of transition to the provisions of the Motor
Carrier Act of 1980. Because the transition has been completed, Statement 44 is
no longer necessary. SFAS 145 amends Statement 13 to require that certain lease
modifications that have economic effects similar to sale-leaseback transactions
be accounted for in the same manner as sale-leaseback transactions. This
amendment is consistent with the FASB's goal of requiring similar accounting
treatment for transactions that have similar economic effects. SFAS 145 also
makes technical corrections to existing pronouncements. The Partnership does not
believe the adoption of SFAS 145 will have a material impact on the
Partnership's financial position, results of operations or cash flows.

In July 2002, the FASB issued Statement of Financial Accounting Standards No.
146 ("SFAS 146"), "Accounting for Costs Associated With Exit or Disposal
Activities." SFAS 146 addresses financial accounting and reporting for costs
associated with exit or disposal activities, and nullifies Emerging Issues Task
Force Issue No. 94-3 (EITF 94-3"), "Liability Recognition for Certain Employee
Termination Benefits and Other Costs to Exit an Activity (including Certain
Costs Incurred in a Restructuring)". SFAS 146 requires recognition of a
liability for a cost associated with an exit or disposal activity when the
liability is incurred, as opposed to being recognized at the date an entity
commits to an exit plan under EITF 94-3. SFAS 146 also establishes that fair
value is the objective for initial measurement of the liability. SFAS 146 is
effective for exit or disposal activities that are initiated after December 31,
2002, with earlier application encouraged.

"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 2001 Form 10-K when and where applicable.

                                       14
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.


Item 3.  Quantitative and Qualitative Disclosures About Market Risk
         ----------------------------------------------------------

The Partnership's leases with equipment users are non-cancelable and have lease
rates that 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 Partnership's other assets and liabilities are also at fixed rates.
Consequently, the Partnership has no interest rate risk or other market risk
exposure.


Item 4.    Controls and Procedures
           -----------------------

Within 90 days prior to the date of this quarterly report, an evaluation was
performed under the supervision and with the participation of the General
Partner's management, including the President and Director, and the Chief
Accounting Officer, of the effectiveness of the design and operation of the
Partnership's disclosure controls and procedures. Based on that evaluation, the
General Partner's management, including the President and Director, and the
Chief Accounting Officer, concluded that the Partnership's disclosure controls
and procedures are effective in timely alerting them to material information
relating to the Partnership required to be included in the Partnership's
periodic SEC reports. There have been no significant changes in the
Partnership's internal controls or in other factors that could significantly
affect internal controls subsequent to the date of their evaluation.


                                       15
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                    PART II.

                                OTHER INFORMATION



Item 1.   Legal Proceedings

          The Partnership is involved in routine legal proceedings
          incidental to the conduct of its business. The General Partner
          believes none of these legal proceedings will have a material
          adverse effect on the financial condition or operations of the
          Partnership.

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 September 30, 2002.


                                       16
<PAGE>
                        Index to Exhibits

Exhibit
Number    Description
 * 99.1   Certification by John F. Olmstead pursuant to 18 U.S.C. Section 1350,
          as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 * 99.2   Certification by Joseph F. Bukofski pursuant to 18 U.S.C. Section
          1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
          2002.


*  Filed herewith


                                       17
<PAGE>
                                   Signatures



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: November 14, 2002       By:  /s/John F. Olmstead
                                    -------------------
                                    John F. Olmstead
                                    President and Director
                                    (Principal Executive Officer)

                               CAPITAL PREFERRED YIELD FUND-IV, L.P.

                               By:  CAI Equipment Leasing V Corp.


Dated: November 14, 2002       By:  /s/Joseph F. Bukofski
                                    ---------------------
                                    Joseph F. Bukofski
                                    Chief Accounting Officer
                                    (Principal Accounting and Financial Officer)


                                       18
<PAGE>
                     CAPITAL PREFERRED YIELD FUND-IV, L.P.

                                 CERTIFICATION

      I, John F.  Olmstead,  President and Director of CAI  Equipment  Leasing V
      Corp., the General Partner of Capital  Preferred Yield Fund-IV,  L.P. (the
      "Partnership"), certify that:

            1.  I have reviewed this report on Form 10-Q of the Partnership;

            2. Based on my knowledge, this quarterly report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading as with respect to the
      period covered by this quarterly report;

            3. Based on my knowledge, the financial statements, and other
      financial information included in this quarterly report, fairly present in
      all material respects the financial condition, results of operations and
      cash flows of the Partnership as of, and for, the periods presented in
      this quarterly report;

            4. The Partnership's other certifying officer and I are responsible
      for establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the Partnership and
      have:

                  a. designed such disclosure controls and procedures to ensure
            that material information relating to the Partnership, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this report
            in being prepared;

                  b. evaluated the effectiveness of the Partnership's disclosure
            controls and procedures as of a date within 90 days prior to the
            filing date of this report (the "Evaluation Date"); and

                  c. presented in this quarterly report our conclusions about
            the effectiveness of the disclosure controls and procedures based on
            our evaluation as of the Evaluation Date;

            5. The Partnership's other certifying officer and I have disclosed,
      based on our most recent evaluation, to the Partnership's auditors:

                  a. all significant deficiencies in the design or operation of
            internal controls which could adversely affect the Partnership's
            ability to record, process, summarize and report financial data and
            have identified for the Partnership's auditors any material
            weaknesses in internal controls; and

                  b. any fraud, whether of not material, that involves
            management or other employees who have a significant role in the
            Partnership's internal controls; and

            6. The Partnership's other certifying officer and I have indicated
      in this quarterly report whether or not there were significant changes in
      internal controls or in other factors that could significantly affect
      internal controls subsequent to the date of our most recent evaluation,
      including any corrective actions with regard to significant deficiencies
      and material weaknesses.


                                                       /s/John F. Olmstead
                                                       -------------------
                                                         John F. Olmstead
                                                      President and Director
                                                  (Principal Executive Officer)
                                                        November 14, 2002
                                       19
<PAGE>
                     CAPITAL PREFERRED YIELD FUND-IV, L.P.


CERTIFICATION

      I, Joseph F. Bukofski, Chief Accounting Officer of CAI Equipment Leasing V
      Corp., the General Partner of Capital  Preferred Yield Fund-IV,  L.P. (the
      "Partnership"), certify that:

            1.  I have reviewed this report on Form 10-Q of the Partnership;

            2. Based on my knowledge, this quarterly report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading as with respect to the
      period covered by this quarterly report;

            3. Based on my knowledge, the financial statements, and other
      financial information included in this quarterly report, fairly present in
      all material respects the financial condition, results of operations and
      cash flows of the Partnership as of, and for, the periods presented in
      this quarterly report;

            4. The Partnership's other certifying officer and I are responsible
      for establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the Partnership and
      have:

                  a. designed such disclosure controls and procedures to ensure
            that material information relating to the Partnership, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this report
            in being prepared;

                  b. evaluated the effectiveness of the Partnership's disclosure
            controls and procedures as of a date within 90 days prior to the
            filing date of this report (the "Evaluation Date"); and

                  c. presented in this quarterly report our conclusions about
            the effectiveness of the disclosure controls and procedures based on
            our evaluation as of the Evaluation Date;

            5. The Partnership's other certifying officer and I have disclosed,
      based on our most recent evaluation, to the Partnership's auditors:

                  a. all significant deficiencies in the design or operation of
            internal controls which could adversely affect the Partnership's
            ability to record, process, summarize and report financial data and
            have identified for the Partnership's auditors any material
            weaknesses in internal controls; and

                  b. any fraud, whether of not material, that involves
            management or other employees who have a significant role in the
            Partnership's internal controls; and

            6. The Partnership's other certifying officer and I have indicated
      in this quarterly report whether or not there were significant changes in
      internal controls or in other factors that could significantly affect
      internal controls subsequent to the date of our most recent evaluation,
      including any corrective actions with regard to significant deficiencies
      and material weaknesses.


                                         /s/Joseph F. Bukofski
                                         ---------------------
                                            Joseph F. Bukofski
                                         Chief Accounting Officer
                               (Principal Accounting and Financial Officer)
                                            November 14, 2002

                                       20