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 March 31, 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

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                        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 March 31, 1998




                                      INDEX


Part I.  Financial Information                                             Page


     Item 1.  Financial Statements

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

        b)  Statements of Operations - Three Months Ended
            March 31, 1998 and 1997........................................  4

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

        d)  Statements of Cash Flows - Three Months
            Ended March 31, 1998 and 1997..................................  6

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

     Item 2.  Management's Discussion and Analysis of
              Financial Condition and Results of Operations................  9



Part II. Other Information

     Item 1.  Legal Proceedings............................................ 10

     Item 6.  Exhibits and Reports on Form 8-K............................. 10

     Signature    ......................................................... 11


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<PAGE>



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

Item 1.  Financial Statements

                        POLARIS AIRCRAFT INCOME FUND IV,
                        A California Limited Partnership

                                 BALANCE SHEETS
                                   (Unaudited)

                                                     March 31,     December 31,
                                                       1998            1997
                                                       ----            ----
ASSETS:

CASH AND CASH EQUIVALENTS                          $  2,068,211    $ 34,023,841

OTHER RECEIVABLES                                           374             -
                                                   ------------    ------------

                                                   $  2,068,585    $ 34,023,841
                                                   ============    ============


LIABILITIES AND PARTNERS' CAPITAL (DEFICIT):

PAYABLE TO AFFILIATES                              $     98,949    $    190,967

ACCOUNTS PAYABLE AND ACCRUED
   LIABILITIES                                          420,901         325,984
                                                   ------------    ------------

        Total Liabilities                               519,850         516,951
                                                   ------------    ------------

PARTNERS' CAPITAL (DEFICIT):
   General Partner                                   (7,794,458)     (4,825,310)
   Limited Partners, 499,954 and 499,964 units
      outstanding in 1998 and 1997, respectively      9,343,193      38,332,200
                                                   ------------    ------------

        Total Partners' Capital                       1,548,735      33,506,890
                                                   ------------    ------------

                                                   $  2,068,585    $ 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)



                                                   Three Months Ended March 31,
                                                   ----------------------------

                                                      1998              1997
                                                      ----              ----
REVENUES:
    Rent from operating leases                    $       -         $2,132,642
    Interest                                          233,496          291,123
    Other                                                 -             16,333
                                                   ----------       ----------

               Total Revenues                         233,496        2,440,098
                                                   ----------       ----------

EXPENSES:
    Depreciation and amortization                         -          1,350,966
    Management fees to general partner                    -            106,632
    Operating                                          86,562            5,318
    Administration and other                           96,123           79,386
                                                   ----------       ----------

               Total Expenses                         182,685        1,542,302
                                                   ----------       ----------

NET INCOME                                         $   50,811       $  897,796
                                                   ==========       ==========

NET INCOME ALLOCATED
    TO THE GENERAL PARTNER                         $  231,669       $  258,935
                                                   ==========       ==========

NET INCOME (LOSS) ALLOCATED
    TO LIMITED PARTNERS                            $ (180,858)      $  638,861
                                                   ==========       ==========

NET INCOME (LOSS) PER LIMITED
    PARTNERSHIP UNIT                               $    (0.36)      $     1.28
                                                   ==========       ==========

        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
                                         Three Months Ended March 31, 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)                    231,669        (180,858)         50,811

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

   Cash distributions to partners    (3,200,817)    (28,807,349)    (32,008,166)
                                   ------------    ------------    ------------
Balance, March 31, 1998            $ (7,794,458)   $  9,343,193    $  1,548,735
                                   ============    ============    ============

        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)

                                                    Three Months Ended March 31,
                                                    ----------------------------

                                                         1998            1997
                                                         ----            ----
OPERATING ACTIVITIES:
      Net income                                   $     50,811    $    897,796
      Adjustments to reconcile net income to
        net cash provided by operating activities:
        Depreciation and amortization                       -         1,350,966
        Changes in operating assets and
           liabilities:
           Increase in rent and other receivables          (374)        (45,702)
           Increase in other assets                         -           (33,269)
           Increase (decrease) in payable to
             affiliates                                 (92,018)             42
           Increase (decrease) in accounts payable
               and accrued liabilities                   94,917         (45,482)
           Increase in lessee security deposits             -            12,827
           Decrease in maintenance reserves                 -          (151,117)
                                                   ------------    ------------

              Net cash provided by operating
                activities                               53,336       1,986,061
                                                   ------------    ------------

FINANCING ACTIVITIES:
      Capital redemptions                                  (800)            -
      Cash distributions to partners                (32,008,166)     (2,777,578)
                                                   ------------    ------------

              Net cash used in financing
                activities                          (32,008,966)     (2,777,578)
                                                   ------------    ------------

CHANGES IN CASH AND CASH
      EQUIVALENTS                                   (31,955,630)       (791,517)

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

CASH AND CASH EQUIVALENTS AT
      END OF PERIOD                                $  2,068,211    $ 23,197,768
                                                   ============    ============

        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  (GAAP).  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.


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
                                            March 31, 1998       March 31, 1998
                                            --------------       --------------

Out-of-Pocket Administrative Expense
     Reimbursement                              $ 67,346           $ 75,851

Out-of-Pocket Operating and
     Remarketing Expense Reimbursement           129,498             23,098
                                                --------           --------

                                                $196,844           $ 98,949
                                                ========           ========


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


                                       7
<PAGE>

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.



                                       8
<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  reported net income of $50,811,  which,  after  allocation  in
accordance with the partnership  agreement,  resulted in a net loss of $0.36 per
limited partnership unit, for the three months ended March 31, 1998, compared to
net income of $897,796, or $1.28 per unit, for the same period in 1997.

The decline in operating  results  during the three months ended March 31, 1998,
as  compared to the same period in 1997,  was  primarily  due to the sale of the
Partnership's remaining aircraft in 1997.

Interest  income  decreased  during the three months  ended March 31,  1998,  as
compared  to the same  period 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 three  months ended March 31, 1998 as
compared  to the same  period  in 1997,  due to an  increase  in legal  expenses
related to the sale of the remaining aircraft.

Administration  and other expenses increased during the three months ended March
31, 1998 as compared to the same period in 1997,  due to  increases  in printing
and postage costs related to an additional distribution.


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 - Cash distributions to limited partners were $28,807,349 or
$57.62  per  limited  partnership  unit,  and  $2,499,820  or $5.00 per  limited
partnership  unit  during  the  three  months  ended  March  31,  1998 and 1997,
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.


                                       9
<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 on
Form  10-K  (Form  10-K),  there  are a  number  of  pending  legal  actions  or
proceedings involving the Partnership.  There have been no material developments
with respect to any such  actions or  proceedings  during the period  covered by
this report.

Other  Proceedings  - Item 10 in Part III of the  Partnership's  1997  Form 10-K
discusses  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

        A Current  Report on Form 8-K,  dated  December  30,  1997,  reporting a
        prepayment in full of the Promissory Note from Triton Aviation  Services
        IV LLC, was filed on January 5, 1998.

                                       10
<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




         May 13, 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)


                                       11