UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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


                                    FORM 10-Q

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




           _X_ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1998

                                       OR

          ___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                    For the transition period from ___ to ___

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

                          Commission File No. 33-15551

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



                        POLARIS AIRCRAFT INCOME FUND IV,
                        a California Limited Partnership

                        State of Organization: California
                   IRS Employer Identification No. 94-3039169
                201 High Ridge Road, Stamford, Connecticut 06927
                           Telephone - (203) 357-3776



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



                            Yes _X_           No ___






                       This document consists of 11 pages.


<PAGE>


                        POLARIS AIRCRAFT INCOME FUND IV,
                        A California Limited Partnership

            FORM 10-Q - For the Quarterly Period Ended June 30, 1998




                                      INDEX


Part I.       Financial Information                                         Page


         Item 1.      Financial Statements

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

              b)  Statements of Operations - Three and Six Months
                  Ended June 30, 1998 and 1997................................4

              c)  Statements of Changes in Partners' Capital
                  (Deficit) - Year Ended December 31, 1997
                  and Six Months Ended June 30, 1998..........................5

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

              e)  Notes to Financial Statements...............................7

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



Part II.      Other Information

         Item 1.      Legal Proceedings.......................................9

         Item 6.      Exhibits and Reports on Form 8-K........................9

         Signature    .......................................................10


                                       2
<PAGE>

                          Part I. Financial Information
                          -----------------------------

Item 1.  Financial Statements

                        POLARIS AIRCRAFT INCOME FUND IV,
                        A California Limited Partnership

                                 BALANCE SHEETS
                                   (Unaudited)

                                                       June 30,    December 31,
                                                         1998          1997
                                                         ----          ----
ASSETS:

CASH AND CASH EQUIVALENTS                           $  1,940,088   $ 34,023,841

OTHER RECEIVABLES                                            250           --
                                                    ------------   ------------

                                                    $  1,940,338   $ 34,023,841
                                                    ============   ============


LIABILITIES AND PARTNERS' CAPITAL (DEFICIT):

PAYABLE TO AFFILIATES                               $    157,107   $    190,967

ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES                                              339,502        325,984
                                                    ------------   ------------

        Total Liabilities                                496,609        516,951
                                                    ------------   ------------

PARTNERS' CAPITAL (DEFICIT):
   General Partner                                    (7,768,799)    (4,825,310)
   Limited Partners, 499,954 and 499,964 units
      outstanding in 1998 and 1997, respectively       9,212,528     38,332,200
                                                    ------------   ------------

        Total Partners' Capital                        1,443,729     33,506,890
                                                    ------------   ------------

                                                    $  1,940,338   $ 34,023,841
                                                    ============   ============

        The accompanying notes are an integral part of these statements.


                                       3
<PAGE>



                               POLARIS AIRCRAFT INCOME FUND IV,
                               A California Limited Partnership

                                   STATEMENTS OF OPERATIONS
                                         (Unaudited)


<TABLE>
<CAPTION>

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

                                            1998           1997         1998          1997
                                            ----           ----         ----          ----
<S>                                      <C>           <C>          <C>           <C>

REVENUES:
     Rent from operating leases          $      --     $ 1,586,190  $      --     $ 3,718,832
     Interest                                 26,979       271,725      260,475       562,848
     Other                                      --          11,162         --          27,495
                                         -----------   -----------  -----------   -----------

             Total Revenues                   26,979     1,869,077      260,475     4,309,175
                                         -----------   -----------  -----------   -----------

EXPENSES:
     Depreciation and amortization              --       1,331,496         --       2,682,462
     Management fees to general partner         --            --           --         106,632
     Operating                                35,981        51,534      122,543        56,852
     Administration and other                 96,004       113,907      192,127       193,293
                                         -----------   -----------  -----------   -----------

             Total Expenses                  131,985     1,496,937      314,670     3,039,239
                                         -----------   -----------  -----------   -----------

NET INCOME (LOSS)                        $  (105,006)  $   372,140  $   (54,195)  $ 1,269,936
                                         ===========   ===========  ===========   ===========

NET INCOME ALLOCATED TO
     THE GENERAL PARTNER                 $    25,659   $   253,678  $   257,328   $   512,613
                                         ===========   ===========  ===========   ===========

NET INCOME (LOSS) ALLOCATED
     TO LIMITED PARTNERS                 $  (130,665)  $   118,462  $  (311,523)  $   757,323
                                         ===========   ===========  ===========   ===========

NET INCOME (LOSS) PER LIMITED
     PARTNERSHIP UNIT                    $     (0.26)  $      0.24  $     (0.62)  $      1.52
                                         ===========   ===========  ===========   ===========

</TABLE>

       The accompanying notes are an integral part of these statements.


                                       4
<PAGE>

                        POLARIS AIRCRAFT INCOME FUND IV,
                        A California Limited Partnership

              STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                   (Unaudited)


                                          Year Ended December 31, 1997 and
                                           Six Months Ended June 30, 1998
                                           ------------------------------

                                        General        Limited
                                        Partner       Partners         Total
                                        -------       --------         -----


Balance, December 31, 1996           $ (3,975,366)  $ 52,044,872   $ 48,069,506

     Net income                           979,368      2,751,143      3,730,511

     Cash distributions to partners    (1,829,312)   (16,463,815)   (18,293,127)
                                     ------------   ------------   ------------

Balance, December 31, 1997             (4,825,310)    38,332,200     33,506,890

   Net income (loss)                      257,328       (311,523)       (54,195)

   Capital redemptions (10 units)            --             (800)          (800)

   Cash distributions to partners      (3,200,817)   (28,807,349)   (32,008,166)
                                     ------------   ------------   ------------

Balance, June 30, 1998               $ (7,768,799)  $  9,212,528   $  1,443,729
                                     ============   ============   ============

       The accompanying notes are an integral part of these statements.



                                       5
<PAGE>


                        POLARIS AIRCRAFT INCOME FUND IV,
                        A California Limited Partnership

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                      Six Months Ended June 30,
                                                      -------------------------

                                                         1998           1997
                                                         ----           ----
OPERATING ACTIVITIES:
   Net income (loss)                                $    (54,195)  $  1,269,936
   Adjustments to reconcile net income (loss) to
        net cash provided by operating activities:
        Depreciation and amortization                       --        2,682,462
        Changes in operating assets and
           liabilities:
           Increase in rent and other receivables           (250)        (6,893)
           Increase in other assets                         --         (250,724)
           Decrease in payable to affiliates             (33,860)       (87,634)
           Increase (decrease) in accounts payable
              and accrued liabilities                     13,518         (1,213)
           Increase in lessee security deposits             --           26,205
           Decrease in maintenance reserves                 --         (239,804)
                                                    ------------   ------------

             Net cash provided by (used in)
               operating activities                      (74,787)     3,392,335
                                                    ------------   ------------


FINANCING ACTIVITIES:
   Capital redemptions                                      (800)          --
   Cash distributions to partners                    (32,008,166)    (5,555,155)
                                                    ------------   ------------

             Net cash used in financing
               activities                            (32,008,966)    (5,555,155)
                                                    ------------   ------------


CHANGES IN CASH AND CASH
   EQUIVALENTS                                       (32,083,753)    (2,162,820)


CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                                34,023,841     23,989,285
                                                    ------------   ------------


CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                    $  1,940,088   $ 21,826,465
                                                    ============   ============

       The accompanying notes are an integral part of these statements.



                                       6
<PAGE>

                        POLARIS AIRCRAFT INCOME FUND IV,
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


1.       Accounting Principles and Policies

In the opinion of management,  the financial statements presented herein include
all  adjustments,  consisting  only of  normal  recurring  items,  necessary  to
summarize fairly Polaris Aircraft Income Fund IV's (the Partnership's) financial
position and results of operations.  The financial statements have been prepared
in accordance with the  instructions  of the Quarterly  Report to the Securities
and  Exchange  Commission  (SEC)  Form  10-Q  and  do  not  include  all  of the
information  and note  disclosures  required by  generally  accepted  accounting
principles.  These  statements  should be read in conjunction with the financial
statements  and notes thereto for the years ended  December 31, 1997,  1996, and
1995  included in the  Partnership's  1997 Annual Report to the SEC on Form 10-K
(Form 10-K).


2.       Related Parties

Under the Limited Partnership  Agreement,  the Partnership paid or agreed to pay
the following  amounts for the current quarter to the general  partner,  Polaris
Investment  Management  Corporation,  in connection  with  services  rendered or
payments made on behalf of the Partnership:

                                                 Payments for
                                              Three Months Ended    Payable at
                                                 June 30, 1998     June 30, 1998
                                                 -------------     -------------

Out-of-Pocket Administrative and Selling
     Expense Reimbursement                          $125,893         $152,970

Out-of-Pocket Operating and
     Remarketing Expense Reimbursement                29,336            4,137
                                                    --------         --------

                                                    $155,229         $157,107
                                                    ========         ========


3.       Partners' Capital

The Partnership  Agreement (the Agreement) stipulates different methods by which
revenue,  income  and  loss  from  operations  and  gain or loss on the  sale of
aircraft are to be allocated  to the general  partner and the limited  partners.
Such  allocations are made using income or loss  calculated  under GAAP for book
purposes, which varies from income or loss calculated for tax purposes.

Cash  available  for  distributions,  including  the  proceeds  from the sale of
aircraft,  is  distributed  10% to the  general  partner  and 90% to the limited
partners.

The different methods of allocating items of income, loss and cash available for
distribution  combined with the calculation of items of income and loss for book
and  tax  purposes  result  in  book  basis  capital   accounts  that  may  vary
significantly  from tax basis capital  accounts.  The ultimate  liquidation  and
distribution  of remaining cash will be based on the tax basis capital  accounts
following liquidation, in accordance with the Agreement.


                                       7
<PAGE>


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

As discussed below under "Liquidity and Cash Distributions,"  Polaris Investment
Management  Corporation  (PIMC,  or the General  Partner),  is in the process of
winding up the business of Polaris  Aircraft  Income Fund IV (the  Partnership).
During 1997, the Partnership sold its remaining  portfolio of 13 used commercial
jet aircraft out of its original portfolio of 33 aircraft.


Partnership Operations

The  Partnership  recorded  a  net  loss  of  $105,006,  or  $0.26  per  limited
partnership  unit,  for the three months  ended June 30,  1998,  compared to net
income of $372,140,  or $0.24 per limited partnership unit, for the three months
ended June 30, 1997. The  Partnership  recorded a net loss of $54,195,  or $0.62
per limited partnership unit for the six months ended June 30, 1998, compared to
net income of  $1,269,936,  or $1.52 per limited  partnership  unit, for the six
months ended June 30, 1997.

The decline in operating  results during the three and six months ended June 30,
1998, as compared to the same periods in 1997,  was primarily due to the sale of
the Partnership's remaining aircraft in 1997.

Interest income  decreased during the three months and six months ended June 30,
1998,  as compared to the same periods in 1997,  primarily  due to a decrease in
the cash reserves in 1998. The decrease in the cash reserves  resulted from cash
distributions,   as  discussed  in  the  liquidity   section.   Another   factor
contributing  to the  decrease  in  interest  income was the absence of interest
income on the deferred  rent payments due from  Continental  that ended when the
final payment was made in 1997.

Operating  expenses  increased  during  the six months  ended  June 30,  1998 as
compared  to the same  period in 1997,  primarily  due to an  increase  in legal
expenses related to the sale of the remaining aircraft.


Liquidity and Cash Distributions

Liquidity - As previously discussed, the Partnership sold its remaining aircraft
during 1997. Polaris Investment Management Corporation, the general partner, has
determined that the  Partnership  maintain cash reserves as a prudent measure to
ensure  that  the  Partnership  has  available   sufficient   funds  to  satisfy
anticipated  contingencies  and  expenses  in  connection  with  winding  up its
business.  The Partnership's  cash reserves will be monitored and may be revised
from time to time as further information becomes available in the future.

Cash Distributions - There were no cash distributions to limited partners during
the three  months  ended June 30,  1998,  compared to  $2,499,820,  or $5.00 per
limited  partnership  unit,  during the three months  ended June 30, 1997.  Cash
distributions  to limited partners during the six months ended June 30, 1998 and
1997 were $28,807,349,  or $57.62 per limited  partnership unit, and $4,999,640,
or $10.00 per limited partnership unit, respectively.  The increase, as compared
to 1997, is due to the distribution of the proceeds received from the prepayment
of a note due from Triton  Aviation  Services IV LLC on December 30,  1997.  The
Partnership is now in the process of winding up its business. With the exception
of reserves  maintained  for  anticipated  expenses and costs of winding up, the
Partnership  distributed  all of its  available  cash  during 1997 and the first
quarter  of  1998.   Consequently,   the  timing  and  amount  of  future   cash
distributions,  if any,  are not yet  known and will  depend  upon  whether  the
Partnership's  reserves exceed its actual expenses and  contingencies in winding
up and on the time required to complete the winding up process.



                                       8
<PAGE>




                           Part II. Other Information
                           --------------------------


Item 1.    Legal Proceedings

As  discussed  in Item 3 of Part I of  Polaris  Aircraft  Income  Fund IV's (the
Partnership) 1997 Annual Report to the Securities and Exchange  Commission (SEC)
on Form 10-K (Form 10-K) and in Item 1 of Part II of the Partnership's Quarterly
Report to the SEC on Form 10-Q (Form 10-Q) for the period  ended March 31, 1998,
there are a number  of  pending  legal  actions  or  proceedings  involving  the
Partnership. Except as described below, there have been no material developments
with respect to any such  actions or  proceedings  during the period  covered by
this report.

Ron Wallace v. Polaris Investment Management Corporation,  et al. - On April 23,
1998, the Court  consolidated for discovery purposes this action with the action
entitled  "Accelerated"  High  Yield  Income  Fund II,  Ltd.,  L.P.  v.  Polaris
Investment Management Corporation, et. al. On July 9, 1998, the Court denied the
defendants'  demurrer to dismiss the plaintiffs'  second amended  complaint.  On
July 28, 1998, defendants filed an answer to the second amended complaint.

Other Proceedings - Item 10 in Part III of the Partnership's  1997 Form 10-K and
Item 1 in Part II of the Partnership's  Form 10-Q for the period ended March 31,
1998 discuss certain  actions which have been filed against  Polaris  Investment
Management  Corporation  and others in connection  with the sale of interests in
the Partnership and the management of the Partnership.  The Partnership is not a
party to these actions. There have been no material developments with respect to
any of the actions described therein during the period covered by this report.


Item 6.    Exhibits and Reports on Form 8-K

a)      Exhibits (numbered in accordance with Item 601 of Regulation S-K)

        27. Financial Data Schedule (in electronic format only).

b)      Reports on Form 8-K

        No reports on Form 8-K were filed by the  Registrant  during the quarter
        for which this report is filed.



                                       9
<PAGE>



                                    SIGNATURE



Pursuant to the  requirements of section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                      POLARIS AIRCRAFT INCOME FUND IV,
                                      A California Limited Partnership
                                      (Registrant)
                                      By: Polaris Investment
                                          Management Corporation,
                                          General Partner




         August 12, 1998                  By: /S/Marc A. Meiches
---------------------------------             ------------------
                                              Marc A. Meiches
                                              Chief Financial Officer
                                              (principal financial officer and
                                              principal accounting officer of
                                              Polaris Investment Management
                                              Corporation, General Partner of
                                              the Registrant)


                                       10