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, 2006
                              ----------------------

                                       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.)


7901 Southpark Plaza, Ste. 107
           Littleton, Colorado                                         80120
----------------------------------------                            ------------
 (Address of principal executive offices)                            (Zip Code)

       Registrant's telephone number, including area code (303) 268-6550
                                                          --------------

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 14

                               Page 1 of 19 Pages

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

                          Quarterly Report on Form 10-Q
                              For the Quarter Ended
                                  June 30, 2006


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


PART I.  FINANCIAL INFORMATION                                              PAGE
                                                                            ----

     Item 1. Financial Statements

             Balance Sheets - June 30, 2006 and December 31, 2005              3

             Statements of Income - Three and Six Months Ended
             June 30, 2006 and 2005                                            4

             Statements of Cash Flows -Six Months Ended
             June 30, 2006 and 2005                                            5

             Notes to Financial Statements                                 6 - 8

     Item 2. Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                    8 - 13

     Item 3. Quantitative and Qualitative Disclosures About Market Risk       13

     Item 4. Controls and Procedures                                          13

PART II. OTHER INFORMATION

     Item 1. Legal Proceedings                                                14

     Item 6. Exhibits                                                         14

             Exhibits                                                         15

     Signatures                                                               16

     Certifications                                                        17-20

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

                                 BALANCE SHEETS
                                   (Unaudited)


                                     ASSETS
                                                          June 30,  December 31,
                                                            2006        2005
                                                            ----        ----


Cash and cash equivalents                               $  560,493    $1,000,558
Accounts receivable, net allowance for losses of
     $10,000 in 2006 and $19,238 in 2005                       467        90,784
Prepaid Insurance                                           85,073        25,177
Equipment held for sale or re-lease                        353,083       148,566
Net investment in direct finance leases                    759,682     1,198,399
Leased equipment, net                                    4,753,404     7,419,059
                                                        ----------    ----------

Total assets                                            $6,512,202    $9,882,543
                                                        ==========    ==========


                       LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
     Accounts payable and accrued liabilities           $  319,985    $  449,101
     Payables to affiliates                                132,191       250,429
     Distributions payable to partners                     136,532       270,450
     Discounted lease rentals                            2,699,859     4,472,322
                                                        ----------    ----------

Total liabilities                                        3,288,567     5,442,302
                                                        ----------    ----------

Partners' capital:
     General partner                                             -             -
     Limited partners:
         Class A                                         2,970,802     4,192,369
         Class B                                           252,833       247,872
                                                        ----------    ----------

Total partners' capital                                  3,223,635     4,440,241
                                                        ----------    ----------

Total liabilities and partners' capital                 $6,512,202    $9,882,543
                                                        ==========    ==========

                 See accompanying notes to 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,
                                            -----------------------   ----------   ----------
                                               2006         2005         2006         2005
                                            -----------------------   ----------   ----------
<S>                                         <C>          <C>          <C>          <C>
Revenue:
  Operating lease rentals                   $1,084,536   $2,080,035   $2,425,759   $4,354,671
  Direct finance lease income                   12,253       29,569       27,439       71,083
  Equipment sales margin                       124,697      125,526      311,590      158,773
  Interest income                                5,098        3,155       10,774        5,860
                                            ----------   ----------   ----------   ----------

Total revenue                                1,226,584    2,238,285    2,775,562    4,590,387
                                            ----------   ----------   ----------   ----------

Expenses:
  Depreciation                                 727,597    1,433,885    1,629,384    3,039,859
  Management fees to general partner            26,112       47,584       58,048      100,598
  Direct services from general partner          29,215       38,923       62,545       77,150
  General and administrative                   161,979      134,780      277,294      232,974
  Interest on discounted lease rentals          72,702      149,230      137,579      295,378
  Remarketing sharing                            2,915      130,074       53,555      213,946
  Provision for losses, net                     33,763         --         43,763       61,000
                                            ----------   ----------   ----------   ----------

Total expenses                               1,054,283    1,934,476    2,262,168    4,020,905
                                            ----------   ----------   ----------   ----------

Net income                                  $  172,301   $  303,809   $  513,394   $  569,482
                                            ==========   ==========   ==========   ==========

Net income allocated:
  To the general partner                    $    6,600   $   14,427   $   17,300   $   28,004
  To the Class A limited partners              164,044      286,488      491,133      536,064
  To the Class B limited partner                 1,657        2,894        4,961        5,414
                                            ----------   ----------   ----------   ----------

                                            $  172,301   $  303,809   $  513,394   $  569,482
                                            ==========   ==========   ==========   ==========

  Net income per weighted average Class A
       limited partner unit outstanding     $     0.34   $     0.59   $     1.02   $     1.11
                                            ==========   ==========   ==========   ==========

  Weighted average Class A limited
       partner units outstanding               481,590      481,695      481,590      481,742
                                            ==========   ==========   ==========   ==========
</TABLE>

                 See accompanying notes to financial statements.

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

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                           Six Months Ended
                                                     ---------------------------
                                                       June 30,       June 30,
                                                        2006            2005
                                                     -----------    -----------

Net cash provided by operating activities            $ 3,196,316    $ 4,989,945
                                                     -----------    -----------

Cash flows from financing activities:
     Principal payments on discounted lease rentals   (1,772,463)    (2,801,130)
     Redemptions of Class A limited partner units              -           (738)
     Distributions to partners                        (1,863,918)    (2,989,604)
                                                     -----------    -----------

Net cash used in financing activities                 (3,636,381)    (5,791,472)
                                                     -----------    -----------

Net decrease in cash and cash equivalents               (440,065)      (801,527)

Cash and cash equivalents at beginning of period       1,000,558      1,208,737
                                                     -----------    -----------

Cash and cash equivalents at end of period           $   560,493    $   407,210
                                                     ===========    ===========

Supplemental disclosure of cash flow information -
     Distributions declared to partners              $ 1,730,000    $ 2,800,400
      Interest paid on discounted lease rentals      $   137,579    $   295,378
                                                     ===========    ===========


                 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. CAI Equipment Leasing V Corp. ("CAIEL-V"), a Colorado
     corporation, is the general partner of the Partnership. CAIEL-V was a
     wholly owned subsidiary of Capital Associates, Inc. ("CAI") until September
     12, 2000, the date it was purchased in its entirety by Mishawaka Leasing
     Company, Inc. ("MLC"). CAI discontinued its operations on December 15, 2000
     and filed Chapter 11 Bankruptcy on October 15, 2001. 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, 2005 was derived from the
     audited financial statements included in the Partnership's 2005 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, 2005, previously filed with the Securities and Exchange
     Commission.

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America requires
     management to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of contingent assets and
     liabilities at the date of the financial statements and the reported
     amounts of revenue and expenses during the reporting period. For leasing
     entities, this includes the estimate of residual values and impairment as
     discussed below. Actual results could differ from those estimates. Included
     in the results of operations for the six months ended June 30, 2006 and
     2005 were $43,763 and $61,000 for provision for losses.

     The Partnership is in its liquidation period, as defined in the Partnership
     Agreement. Even so, because the liquidation period extends over an
     undefined number of accounting periods, the accompanying financial
     statements have been prepared on a going concern basis that contemplates
     the realization of assets and payments of liabilities in the ordinary
     course of business, which is in accordance with accounting principles
     generally accepted in the United States of America. The General Partner
     believes that the Partnership will generate sufficient cash flows from
     operations during the remainder of 2006, to (1) meet current operating
     requirements, and (2) fund cash distributions to Class A limited partners
     in accordance with the Partnership Agreement. All distributions are
     expected to be a return of capital for economic and accounting purposes.
     Additionally, the General Partner anticipates that all equipment owned by
     the Partnership will be sold, the Partnership liquidated and final
     distribution made by September 30, 2006. However, the Partnership has not
     entered into a formal liquidation plan as of June 30, 2006 and accordingly
     has not adopted the liquidation basis of accounting. There is no assurance
     that the limited partners will receive future distributions equal to their
     capital account balance at June 30, 2006.

                                       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. Management fees to the general partner for the six
     months ended June 30, 2006 and 2005 were $58,048 and $100,598,
     respectively. As of June 30, 2006 and December 31, 2005 management fees of
     $7,549 and $12,966 respectively, 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. Direct services from the general partner for the six
     months ended June 30, 2006 and 2005 were $62,545 and $77,150, respectively.
     As of June 30, 2006 and December 31, 2005 direct services from the General
     Partner in the amount of $11,020 and $10,933, respectively, 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. General and administrative expenses for the
     six months ended June 30, 2006 and 2005 were $277,294 and $232,974,
     respectively. As of June 30, 2006 and December 31, 2005 administrative
     expenses of $113,622 and $226,530, respectively, are included in payables
     to affiliates. The June 30, 2006 amount includes an accrual for profit
     sharing proceeds which will be paid in the third quarter (see below).

3.   Remarketing Agreement
     ---------------------

     The Partnership has entered into remarketing agreements with an
     unaffiliated third party, whereby that party provides remarketing services
     to the Partnership in exchange for profit sharing once the Partnership has
     reached certain thresholds, usually relating to rents received on
     re-marketed or sold equipment after the expiration of the initial lease
     term. The profit sharing proceeds incurred during the six months ended June
     30, 2006 and 2005 were $53,555 and $213,946 and are recorded in the
     accompanying statements of income as remarketing sharing.

4.   Subsequent event
     ----------------

     Subsequent to June 30, 2006, the Partnership accepted and closed on an
     offer to purchase approximately 84% of the Partnership's lease portfolio.
     The purchase price for these leases was approximately $3.2

                                       7
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


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

     million, including the assumption of the related discounted lease rentals.
     The Partnership also entered into an agreement to sale the remaining 16% of
     the Partnership's lease portfolio, including the related discounted lease
     rentals, to the General Partner for approximately $525,000. This sale is
     expected to close during the third quarter of 2006. No impairment will be
     recorded as a result of these sales.

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,
                                      ------------------------------------    -----------------------------------
                                          2006         2005       Change        2006         2005        Change
                                       ---------    ---------    ---------    ---------    ---------    ---------
<S>                                    <C>          <C>          <C>          <C>          <C>          <C>
Leasing margin                         $ 293,575    $ 396,415    $(102,840)   $ 632,680    $ 876,571    $(243,891)
Equipment sales margin                   124,697      125,526         (829)     311,590      158,773      152,817
Interest income                            5,098        3,155        1,943       10,774        5,860        4,914
Management fees to general partner       (26,112)     (47,584)      21,472      (58,048)    (100,598)      42,550
Direct services from general partner     (29,215)     (38,923)       9,708      (62,545)     (77,150)      14,605
General and administrative              (161,979)    (134,780)     (27,199)    (277,294)    (232,974)     (44,320)
Provision for losses, net                (33,763)           -      (33,763)     (43,763)     (61,000)      17,237
                                       ---------    ---------    ---------    ---------    ---------    ---------
  Net income                           $ 172,301    $ 303,809    $(131,508)   $ 513,394    $ 569,482    $ (56,088)
                                       =========    =========    =========    =========    =========    =========
</TABLE>

The Partnership entered its liquidation period in 2002, as defined in the
Partnership Agreement, and will not purchase any equipment in future periods.
Furthermore, during future periods, initial leases will expire and the equipment
will be remarketed (i.e., re-leased or sold). As a result, both the size of the
Partnership's leasing portfolio and the amount of total revenue will decline
("portfolio runoff"). Even so, because the liquidation period extends over an
undefined number of accounting periods, the accompanying financial statements
have been prepared on a going concern basis that contemplates the realization of
assets and payments of liabilities in the ordinary course of business, which is
in accordance with accounting principles generally accepted in the United States
of America.

                                       8
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

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

Leasing Margin

Leasing margin consists of the following:

<TABLE>
<CAPTION>
                                                     Three Months Ended             Six Months Ended
                                                          June 30,                      June 30,
                                                --------------------------     ---------------------------
                                                   2006            2005            2006            2005
                                                ----------     -----------     -----------     -----------
<S>                                            <C>             <C>             <C>             <C>
Operating lease rentals                        $ 1,084,536     $ 2,080,035     $ 2,425,759     $ 4,354,671
Direct finance lease income                         12,253          29,569          27,439          71,083
Depreciation                                      (727,597)     (1,433,885)     (1,629,384)     (3,039,859)
Remarketing sharing                                 (2,915)       (130,074)        (53,555)       (213,946)
Interest expense on discounted lease rentals       (72,702)       (149,230)       (137,579)       (295,378)
                                               -----------     -----------     -----------     -----------
   Leasing margin                              $   293,575     $   396,415     $   632,680     $   876,571
                                               ===========     ===========     ===========     ===========

   Leasing margin ratio                                 27%             19%             26%             20%
                                                        ==              ==              ==              ==
</TABLE>

The components of leasing margin decreased due to portfolio runoff. Remarketing
sharing represents a remarketing agreement with an unaffiliated third party,
whereby that party provides remarketing services to the Partnership in exchange
for profit sharing once the Partnership has reached certain thresholds, usually
relating to rents received on re-marketed or sold equipment after the expiration
of the initial lease term.

Leasing margin ratio increased for the three and six months ended June 30, 2006
compared to the three and six months ended June 30, 2005 primarily due to
increases in a) the percentage of leases in the portfolio that have entered
their remarketing stage, and b) the average maturity of operating leases in the
portfolio. Leasing margin is generally lower and leasing margin ratio is
generally higher as leases enter their remarketing stage because typically the
rate of return on remarketed leases is higher. Leasing margin and leasing margin
ratio for an operating lease financed with discounted lease rentals increase as
the lease matures since rents and depreciation are typically fixed while
interest expense declines as the related discounted lease rentals principal is
repaid. Leasing margin decreased for the three and six months ended June 30,
2006 compared to the three and six months ended June 30, 2005 primarily due to
the decreasing size of the portfolio.

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).

                                       9
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

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

Equipment Sales Margin

Equipment sales margin consists of the following:

<TABLE>
<CAPTION>
                                  Three Months Ended            Six Months Ended
                                       June 30,                      June 30,
                              --------------------------    --------------------------
                                   2006          2005           2006           2005
                              -----------    -----------    -----------    -----------
<S>                           <C>            <C>            <C>            <C>
Equipment sales revenue       $   463,007    $   703,132    $ 1,146,697    $   909,997
Cost of equipment sales          (338,310)      (577,606)      (835,107)      (751,224)
                              -----------    -----------    -----------    -----------
     Equipment sales margin   $   124,697    $   125,526    $   311,590    $   158,773
                              ===========    ===========    ===========    ===========
</TABLE>

Equipment sales margin fluctuates based on the composition of equipment
available for sale. Currently, the Partnership is in its liquidation period (as
defined in the Partnership Agreement). Initial leases are expiring and the
equipment is either being re-leased or sold to the lessee or a third party.
Equipment sales margin varies with the number and dollar amount of equipment
leases that mature in a particular period and the current market for specific
equipment and residual value estimates.

Interest Income

Interest income varies due to (1) the amount of cash available for investment
pending distribution to partners and (2) the interest rate on such invested
cash.

Expenses

Management fees paid to the general partner are earned on gross rents received
and will fluctuate due to variances in cash flow and the size of the
Partnership's portfolio. Management fees paid to the general partner decreased
for the three and six months ended June 30, 2006 compared to the three and six
months ended June 30, 2005 due to the decrease in average portfolio size
discussed above, which resulted in a corresponding decrease in gross rents
received.

Direct services from the general partner decreased for the three and six months
ended June 30, 2006 primarily due to the decreasing size of the portfolio. There
are fewer leases and, therefore, less time is required to manage it.

General and administrative expenses increased for the three and six months ended
June 30, 2006 compared to the three and six months ended June 30, 2005 primarily
due to a) an increase in audit fees, b) an increase in state taxes paid during
the second quarter.

                                       10
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

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

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 or purchase
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 impairments in value that, if any, are also recorded as provision for
losses.

The provision for losses of $43,763 recorded during the six months ended June
30, 2006 related primarily to losses on equipment returned to the Partnership at
lease maturity occurring because the residual realized is expected to be less
than the residual value originally estimated.



                                       11
<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 is in its liquidation period, as defined in the Partnership
Agreement. The Partnership is not purchasing additional equipment, initial
leases are expiring, and the amount of equipment being remarketed (i.e.,
re-leased, renewed, or sold) is generally decreasing. As a result, both the size
of the Partnership's lease portfolio and the amount of leasing revenue are
declining. Even so, because the liquidation period extends over an undefined
number of accounting periods, the accompanying financial statements have been
prepared on a going concern basis that contemplates the realization of assets
and payments of liabilities in the ordinary course of business, which is in
accordance with accounting principles generally accepted in the United States of
America.

The Partnership funds its operating activities principally with cash from rents
and sales of off-lease equipment. The decline of net cash provided by operating
activities of $1,793,629 from the six months ended June 30, 2005 to June 30,
2006 is primarily due to a reduction in equipment under lease. Available cash
and cash reserves of the Partnership are invested in short-term government
securities pending distribution to the partners.

During the six months ended June 30, 2006, the Partnership declared
distributions to the Class A limited partners of $1,712,700 ($134,194 of which
was paid in July 2006). All such distributions are expected to constitute a
return of capital for economic purposes. 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 2006, to (1) meet current
operating requirements, and (2) fund cash distributions to Class A limited
partners in accordance with the Partnership Agreement. All distributions are
expected to be a return of capital for economic and accounting purposes.
Additionally, the General Partner anticipates that all equipment owned by the
Partnership will be sold and the Partnership liquidated by September 30, 2006.
However, the Partnership has not entered into a formal liquidation plan as of
June 30, 2006 and accordingly has not adopted the liquidation basis of
accounting. There is no assurance that the limited partners will receive future
distributions equal to their capital account balance at June 30, 2006.

Subsequent to June 30, 2006, the Partnership accepted and closed on an offer to
purchase approximately 84% of the Partnership's lease portfolio. The purchase
price for these leases was approximately $3.2 million, including the assumption
of the related discounted lease rentals. The Partnership also entered into an
agreement to sale the remaining 16% of the Partnership's lease portfolio,
including the related discounted lease rentals, to the General Partner for
approximately $525,000. This sale is expected to close during the third quarter
of 2006. No impairment will be recorded as a result of these sales.

                                       12
<PAGE>
                      CAPITAL PREFERRED YIELD FUND-IV, L.P.

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

"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 2005 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 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 minimal interest rate risk or other market
risk exposure.


Item 4.  Controls and Procedures

An evaluation was performed under the supervision and with the participation of
the General Partner's management, including the President and Director, and the
Principal Financial Officer, of the effectiveness of the design and operation of
the Partnership's disclosure controls and procedures as of the end of the period
covered by this report. Based on that evaluation, the General Partner's
management, including the President and Director, and the Principal Financial
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 the internal controls
subsequent to the date the Partnership completed its evaluation.

                                       13
<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.

Items 2 - 5    None

Item 6.        Exhibits

               (a) Exhibits



                                       14
<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 Mary M. Ebele pursuant to 18 U.S.C. Section 1350, as
           adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


 *  Filed herewith





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

                                   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: August 14, 2006              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: August 14, 2006              By: /s/Mary M. Ebele
                                        ----------------
                                        Mary M. Ebele
                                        Principal Financial Officer



                                       16
<PAGE>
                                  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 quarterly 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 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-15(e) and 15d-15(e)) for the Partnership and have:

          a. designed such disclosure controls and procedures or caused such
     disclosure controls and procedures to be designed under our supervision 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 and presented in this report our conclusions about
     the effectiveness of the disclosure controls and procedures as of the end
     of the period covered by this report and based on such evaluation; and

          c. disclosed in this report any change in the Partnership's internal
     control over financial reporting that occurred during the Partnership's
     most recent fiscal quarter that has materially affected, or is reasonably
     likely to materially affect, the Partnership's internal control over
     financial reporting; and

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

          a. all significant deficiencies and material weaknesses in the design
     or operation of internal control over financial reporting which are
     reasonably likely to adversely affect the Partnership's ability to record,
     process, summarize and report financial information; and

          b. any fraud, whether or not material, that involves management or
     other employees who have a significant role in the Partnership's internal
     control over financial reporting.


                                      /s/John F. Olmstead
                                      -------------------
                                         John F. Olmstead
                                      President and Director
                                  (Principal Executive Officer)
                                         August 14, 2006

                                       17
<PAGE>
                                  CERTIFICATION

I, Mary M. Ebele, Principal Financial 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 quarterly 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 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-15(e) and 15d-15(e)) for the Partnership and have:

          a. designed such disclosure controls and procedures or caused such
     disclosure controls and procedures to be designed under our supervision 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 and presented in this report our conclusions about
     the effectiveness of the disclosure controls and procedures as of the end
     of the period covered by this report and based on such evaluation; and

          c. disclosed in this report any change in the Partnership's internal
     control over financial reporting that occurred during the Partnership's
     most recent fiscal quarter that has materially affected, or is reasonably
     likely to materially affect, the Partnership's internal control over
     financial reporting; and

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

          a. all significant deficiencies and material weaknesses in the design
     or operation of internal control over financial reporting which are
     reasonably likely to adversely affect the Partnership's ability to record,
     process, summarize and report financial information; and

          b. any fraud, whether or not material, that involves management or
     other employees who have a significant role in the Partnership's internal
     control over financial reporting.


                                       /s/Mary M. Ebele
                                       ----------------
                                          Mary M. Ebele
                                   Principal Financial Officer
                                         August 14, 2006

                                       18