<PAGE>1

              SECURITIES AND EXCHANGE COMMISSION
              WASHINGTON, D.C.  20549

              FORM 10-K
                   
              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF 
              THE SECURITIES EXCHANGE ACT OF 1934

              For the fiscal year ended December 31, 1995
               
              Commission file number 0-17636

              Exact name of registrant as specified in its charter:  
              T. ROWE PRICE REALTY INCOME FUND IV, AMERICA'S 
              SALES-COMMISSION-FREE REAL ESTATE LIMITED PARTNERSHIP

              State or other jurisdiction of incorporation or
              organization: Delaware      

              IRS Employer Identification Number:  95-4147931      

              Address of principal executive offices:  100 East Pratt
              Street, Baltimore, Maryland 21202  

              Registrant's telephone number: 1-800-638-5660       

              Securities registered pursuant to Section 12(b) of the
              Act:NONE

              Securities registered pursuant to Section 12(g) of the
              Act:  Units of Limited Partnership.

              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  ___   

              Indicate by check mark if disclosure of delinquent
              filers pursuant to Item 405 of Regulation S-K is not
              contained herein, and will not be contained, to the best
              of registrant's knowledge, in definitive proxy or
              information statements incorporated by reference in Part
              III of this Form 10-K or any amendment to this Form 10-K
              [X]

              The aggregate market value of the voting stock held by
              non-affiliates of the registrant is not determinable
              because there is no public trading market for the Units
              of Limited Partnership Interest.













              <PAGE>2

                        DOCUMENTS INCORPORATED BY REFERENCE

              Portions of the Prospectus of the Partnership dated
              February 26, 1988, File Number 33-18965 filed with the
              Commission pursuant to Rule 424(b) are incorporated
              herein in Parts I, III, and IV by reference. 

              Portions of the Annual Report to Limited Partners of the
              Partnership for the fiscal year ended December 31, 1995
              dated February 15, 1996 and filed with the Commission as
              Exhibit 13 is incorporated in Parts I, II and IV by
              reference.  

              Index to Exhibits is located on pages 24-26. 


















































              <PAGE>3

                        T. ROWE PRICE REALTY INCOME FUND IV,
                AMERICA'S SALES-COMMISSION-FREE REAL ESTATE LIMITED
              PARTNERSHIP


                                       INDEX

                                                                 Page

              PART I.

              Item 1.   Business                                    4
              Item 2.   Properties                                 11
              Item 3.   Legal Proceedings                          11
              Item 4.   Submission of Matters to a                 11
                        Vote of Security Holders                     

              PART II.

              Item 5.   Market for the Partnership's Limited       11
                        Partnership Interests and 
                        Related Security Holder Matters
              Item 6.   Selected Financial Data                    14
              Item 7.   Management's Discussion and Analysis       15
                        of Financial Condition and Results of 
                        Operations
              Item 8.   Financial Statements and Supplementary     18
                        Data                                       
              Item 9.   Changes in and Disagreements with          19
                        Accountants on Accounting and 
                        Financial Disclosure


              PART III.

              Item 10.  Directors and Executive Officers of the    19
                        Partnership
              Item 11.  Executive Compensation                     22
              Item 12.  Security Ownership of Certain Beneficial   23
                        Owners and Management
              Item 13.  Certain Relationships and Related          23
                        Transactions


              PART IV.

              Item 14.  Exhibits, Financial Statement Schedules    24
                        and Reports on Form 8-K

















              <PAGE>4
                                       PART I

              Item 1.  Business

              T. Rowe Price Realty Income Fund IV, America's Sales-
              Commission-Free Real Estate Limited Partnership (the
              "Partnership"), was formed on November 17, 1987, under
              the Delaware Revised Uniform Limited Partnership Act for
              the purpose of acquiring, operating and disposing of
              primarily existing income-producing commercial and
              industrial real properties.  On February 26, 1988, the
              Partnership commenced an offering of $75,000,000 of
              Limited Partnership Units ($50 per Unit) pursuant to a
              Registration Statement on Form S-11 under the Securities
              Act of 1933 (Registration No. 33-18965) (the
              "Registration Statement").  The Prospectus filed
              pursuant to Rule 424(b) under the Securities Act of 1933
              (the "Prospectus") sets forth a complete description of
              the business of the Partnership in the sections entitled
              "Investment Objectives" and "Fund Policies" on pages 17
              - 24 of the Prospectus,  which pages are incorporated by
              reference herein.  The Gross Proceeds from the offering
              totaled $34,605,000, and an additional $25,000 was
              contributed by the initial limited partner, T. Rowe
              Price Real Estate Group, Inc.  There were 4,739 Limited
              Partners as of February 16, 1996.  The offering
              terminated on September 30, 1988, and additional Units
              will be sold only in connection with the Partnership's
              reinvestment plan.  As of March 16, 1996, 159,176
              additional Units had been sold under the plan at prices
              ranging from $31 to $50 per Unit, for a total of
              $6,677,000.  Pursuant to the Partnership's Redemption
              Plan, 79,752 Units have been redeemed for a total of
              $2,861,000.  As of February 16, 1996 there were 772,023
              Units outstanding.

              In December of 1991, LaSalle Advisors Limited
              Partnership ("LaSalle") entered into a contract with the
              Partnership's general partner, T. Rowe Price Realty
              Income Fund IV Management, Inc. ("the General Partner")
              and the Partnership to perform day-to-day management and
              real estate advisory services for the Partnership under
              the supervision of the General Partner and its
              Affiliates.  LaSalle's duties under the contract include
              disposition and asset management services, including
              recordkeeping, contracting with tenants and service
              providers, and preparation of financial statements and
              other reports for management use.  The General Partner
              continues to be responsible for overall supervision and
              administration of the Partnership's operations,
              including setting policies and making all disposition
              decisions, and the General Partner and its Affiliates
              continue to provide administrative, advisory, and












              oversight services to the Partnership.  Compensation to
              LaSalle from the Partnership consists of accountable
              expense reimbursements, subject to a 


              <PAGE>5

              fixed maximum amount per year.  All other compensation
              to LaSalle is paid out of compensation and distributions
              paid to the General Partner by the Partnership.  

              The Partnership is engaged solely in the business of
              real estate investment, therefore, presentation of
              information about industry segments is not applicable.
              In 1995, three of the Partnership's investments produced
              15% or more of the Partnership's revenue:  Westbrook
              Commons (32%), Kent Sea Park (21%), and Goshen Plaza
              (19%).  In 1994, three of the Partnership's investments
              produced 15% or more of the Partnership's revenue: 
              Westbrook Commons (27%), Goshen Plaza (22%), and Kent
              Sea Park (16%).  In 1993, four of the Partnership's
              investments produced 15% or more of the Partnership's
              revenue: Westbrook Commons (22%), Metropolitan
              Industrial (19%), Goshen Plaza (18%) and Kent Sea Park
              (16%).  In none of these periods did any tenant produce
              more than 10% of the Partnership's revenues from real
              estate operations.

              The Partnership sold one of its investment properties,
              Metropolitan Industrial, in 1994 for a net sales price
              of $5,870,000.  The Partnership owns directly and
              through joint venture partnerships the properties or
              interests listed in Schedule III to this Report, "Real
              Estate and Accumulated Depreciation," which is set forth
              in Exhibit 99(b) to this Report, and which is
              incorporated by reference herein and contains
              information as to acquisition date and total cost of
              each of the properties.  Additional information
              regarding these properties and/or interests, including
              percentage leased as of 
              December 31, 1995 is set forth in the table, "Real
              Estate Holdings," appearing on page 5 of the
              Partnership's 1995 Annual Report to Limited Partners
              which is hereby incorporated by reference herein.  A
              brief narrative description of each investment follows.

              Tierrasanta

              The Partnership owns a 40% interest in Tierrasanta 234,
              a joint venture with its affiliates, T. Rowe Price
              Realty Income Fund II, America's Sales-Commission-Free
              Real Estate Limited Partnership ("RIF II") and T. Rowe
              Price Realty Income Fund III, America's Sales-
              Commission-Free Real Estate Limited Partnership ("RIF












              III").  Tierrasanta 234 owns a 100% interest in
              Tierrasanta Research Park in San Diego, California.  The
              project contains four buildings utilized for research
              and development purposes, for a total of 104,000 square
              feet of space.  It is located in the Kearny Mesa market
              area, north of San Diego, which is part of the larger
              "Interstate 15" commercial corridor.

              Although the Partnership lost one 11,100 square foot
              tenant due to credit concerns during the year, it was
              able to re-lease its space in addition to the existing
              vacancy to bring the leased 


              <PAGE>6

              status to 100% by year-end.  In total, three new leases
              totaling 31,200 square feet, and one 15,800 square foot
              renewal/expansion 
              were signed at this San Diego research and development
              property.  During 1996, only one lease expires with a
              40,000 square foot tenant.  Negotiations have commenced,
              but it is premature to make a statement about the
              potential outcome of the negotiations.

              Tierrasanta Research Park is part of the Kearny Mesa
              research and development ("R&D")/office market.  The
              Park competes against both R&D and office buildings. 
              While net absorption in the fourth quarter of 1995
              showed a loss of approximately 300,000 square feet, this
              deterioration was due primarily to the loss of two large
              tenants totaling 220,000 square feet during that
              quarter.  Overall activity in the submarket has been
              good, with approximately 789,000 of gross absorption for
              the year, and slightly higher rents than year-end 1994,
              as discussed below.  Vacancy rates at year-end 1995 were
              approximately 13% and 19% for R&D space and office
              space, respectively, versus approximately 13% and 21%,
              respectively, for the previous year. 

              Rates in this submarket at year-end for Class A R&D
              space and office space improved with average R&D rates
              rising from approximately $6.30 per square foot per year
              net of taxes, insurance and utilities to approximately
              $7.50 per square foot.  Average Class A office rates
              rose from $13.50 full service per square foot per year
              to $14.40.  Rates for Class B R&D space rose from $4.68
              per square foot net of taxes, insurance and utilities to
              $5.70 per square foot.  Class B office rates climbed
              from $9.30 per square foot full service to $11.40 per
              square foot.  Tierrasanta competes with both Class A and
              B buildings, but it most frequently competes with the
              latter.  The average net effective rental rate rose from
              around $3.60 - $4.20 per square foot to $5.40 to $7.80












              per square foot, with free rent still virtually
              nonexistent.

              During 1994, the Partnership recorded a provision for
              value impairment of $733,000 in connection with
              Tierrasanta.  The General Partner determined that this
              adjustment was a prudent course of action based upon the
              uncertainty of the Partnership's ability to recover the
              net carrying value of the project through future
              operations or sale.  This determination was based upon
              then-current market conditions and future performance
              expectations for this investment.  No additional
              provision was deemed warranted in 1995. 

              Fairchild Corporate Center (formerly known as Brinderson
              Plaza)

              The Partnership owns a 20% interest in Fairchild 234, a
              joint venture with RIF II and RIF III.  On February 1,
              1994, a wholly-owned subsidiary of Fairchild 234
              acquired Fairchild Corporate Center, an office
              development in Irvine, California.  The development was
              previously held under a participating loan,

              <PAGE>7

              and consists of two three-story buildings containing
              105,000 square feet of space.  The Partnership
              previously recorded a loan loss of $1,737,000 in 1991,
              and valuation allowances totalling $585,000 in 1992 and
              1993.  In conjunction with the first quarter 1994
              purchase of Fairchild Corporate Center, the valuation
              allowance was reduced to $582,000 and then reclassified
              as a reduction in the carrying value of the investment
              in real estate.  In 1995, the Partnership began
              foreclosure for tax purposes.  The process is
              anticipated to be completed during the second quarter of
              1996.

              The leased status declined at this office property
              primarily due to the loss on the last day of the year of
              a tenant representing 9,800 square feet or 9% of the
              leasable space in the buildings.  Additionally, the
              Partnership lost two tenants totaling 6,100 square feet
              due to credit concerns and four other tenants totaling
              17,200 square feet upon their lease expirations.  On the
              positive side, the first phase of the renovations of the
              two buildings was completed and, the property was
              renamed, and leasing activity improved significantly. 
              Leases with three new tenants were signed for a total of
              17,100 square feet, and renewals and/or expansions were
              executed with six existing tenants for another 7,900
              square feet. The net result was a decline in the leased
              status from year-end 1994 of twelve percentage points to












              73%.  Leases representing 31% of the leasable space
              expire in 1996.

              The John Wayne/Orange County Airport submarket in which
              the project is located had 454,000 square feet of net
              absorption during the first three quarters of the year. 
              As a result, vacancy improved to 14% from approximately
              16% the previous year on an inventory of approximately
              29.2 million square feet.  In order to make the property
              more competitive in its market, the Partnership will
              continue to renovate some of the common areas in 1996 to
              update their appearance and bring them into compliance
              with the Americans with Disabilities Act.  The
              renovation of all common areas should be completed in
              1997.

              Rental rates have increased from $12.60 to $15.60  per
              square foot last year to $15.00 to $17.40 per square
              foot this year for Class B office space such as
              Fairchild Corporate Center.  Only two competitive
              speculative buildings totaling 140,000 square feet are
              anticipated to be under construction in 1996.  

              Westbrook Commons

              The Partnership owns a 50% interest in Penasquitos 34, a
              joint venture with RIF III.  Penasquitos 34 owns a 100%
              interest in Westbrook Commons Shopping Center
              ("Westbrook Commons"), a neighborhood shopping center in
              the Village of Westchester, Illinois, a Chicago suburb. 
              The property contains 122,000 rentable square feet of
              space.  

              <PAGE>8


              One new 3,600 square foot tenant and six renewal leases
              totaling 8,900 square feet were signed during the year
              at this suburban Chicago retail center at generally
              higher rates than previously paid.  However, because one
              1,300 square foot tenant did not renew, and two tenants
              occupying a total of 3,700 square feet were lost due to
              credit issues, the property's occupancy declined
              slightly - from 97% to 96% by year end 1995.  During the
              year, the Partnership completed a "face lift" which
              substantially improved the "curb appeal" of the
              property.  Leases representing 6% of the property's
              total leasable area expire in 1996.  Activity from
              prospective tenants, as well as current tenants
              interested in expanding, has been good.

              The Westchester market in which the project is located
              continues to remain a stable and relatively healthy
              environment for retailers.  Grocery anchored centers












              such as Westbrook Commons have proven to be the most
              successful anchor for the service/convenience based
              retailers.  Little fluctuation has occurred in the
              overall vacancy and rental rates throughout the
              submarket.  Industry figures place the vacancy rate for
              the competitive centers within a three-mile radius of
              Westbrook Commons at approximately 4% versus 2% the
              previous year on a total inventory of 1.1 million square
              feet, but the Partnership does not believe this increase
              to be indicative of any negative trend.  The average
              rental rates in the submarket are currently $14.00-16.00
              NNN per square foot per year for Class A space.  

              Goshen Plaza Shopping Center

              The Partnership owns a 90% interest in Goshen Road
              Limited Partnership, which owns Goshen Plaza Shopping
              Center ("Goshen Plaza"), a neighborhood shopping center
              in Montgomery County, Maryland, a suburb of the District
              of Columbia.  The Partnership is the sole general
              partner of the Goshen Road Limited Partnership; the
              remaining 10% interest is owned by the limited partners
              of Goshen Road Limited Partnership who sold the
              Partnership its 90% interest.  None of these limited
              partners are affiliates of the Partnership.

              Goshen Plaza consists of four buildings:  two multi-
              tenant buildings on either side of a single-tenant
              building occupied by a People's Drug Store and a free-
              standing, single-tenant restaurant building on a pad,
              occupied by a Roy Rogers/Hardee's restaurant.  The total
              gross leasable area of the Center is 46,000 square feet.

              Goshen Plaza ended the year at 75% leased which was down
              eighteen percentage points from the previous year.  This
              decrease was due to the departure of four financially
              troubled tenants totaling 9,400 square feet, including a
              4,200 square foot restaurant.   


              <PAGE>9

              This loss was only partially offset by the lease to a
              new tenant of one 1,200 square foot space.  Although
              each of the remaining vacancies is being aggressively
              marketed and have generated considerable activity, no
              likely prospects have been identified.   Leases
              representing 9% of the property's total leasable area
              expire in 1996.

              Goshen Plaza competes primarily with nine other
              neighborhood shopping centers located within a five mile
              radius, ranging in size from 11,000 square feet to
              165,000 square feet and totaling approximately 782,000












              square feet.  Vacancy in these projects is currently
              approximately 4% versus 6% for a slightly different
              group of nine competitive projects the previous year. 
              Retail activity in the Montgomery County submarket has
              improved slightly since the prior year as market rates
              have moved upward $1.00 to $2.00 per square foot from
              $12.00 to $15.00 per square foot NNN in the prior year. 
              Tenants signing new leases within this market are
              typically negotiating one to two months of free rent on
              a five-year term.  Overall, it is hoped that the more
              favorable market environment will translate into better
              operating results at Goshen in 1996.

              Burnham Building

              The Partnership owns a 100% interest in a warehouse
              facility in the South Congress Industrial Park in the
              northern section of Boca Raton, which is in south Palm
              Beach County.  It is leased to a single tenant, Burnham
              Services Corporation, under a long-term lease which
              expires February 28, 2000. Burnham subleases a portion
              of the property to other tenants.  This one-story
              industrial facility contains 71,000 rentable square feet
              and is situated on 4.4 acres of land.

              Burnham is a nationwide moving and storage company
              specializing in transportation, storage, warehouse
              management, and installation of high-tech electronic
              equipment.  The Burnham Building is their Southeast
              Florida regional headquarters.  

              The downsizing of IBM's 1.0 million square-foot personal
              computer manufacturing headquarters in Boca Raton in the
              late 1980's created a glut of space that prompted the
              deterioration of this flex office/industrial market.  In
              1995, IBM reduced their commitment  to space in the area
              by an additional 300,000 square feet, but most of IBM's
              downsizing was completed in 1993 and the Boca Raton
              industrial market appeared to stabilize as 1995
              progressed.  Market rates for this product type have
              started to rise, and available industrial space has
              become somewhat scarce.  No  new significant speculative
              projects are expected in the near future, due to high
              land costs and restrictive zoning regulations. Rental
              rates for low-finish industrial buildings remained at an
              average of between $2.75 to $4.00 per square foot  per
              year NNN.

              <PAGE>10


              At year end 1995, the Partnership received an
              unsolicited offer to purchase the property from a
              qualified buyer.  The Partnership is evaluating the












              offer and the possible alternatives, and anticipates
              determining its strategy during the second quarter of
              1996.

              Kent Sea Park

              The Partnership owns a 100% interest in Kent Sea Park
              which is located in the southern end of the Kent Valley
              industrial market, four miles southeast of the Seattle-
              Tacoma International Airport and about 15 miles south of
              downtown Seattle.  The property consists of two one-
              story warehouse buildings containing 138,000 square feet
              located on 3.7 acres. 

              The property's year-end occupancy decreased to 97% from
              100% in 1994.  Although two new tenants leasing a total
              of 10,500 square feet were signed in 1995, the
              Partnership was unable to release part of the space
              vacated by a 10,800 square foot tenant with financial
              difficulties.  Leases representing 21% of the project
              expire in 1996.     

              The property continues to compare favorably to the Kent
              Valley industrial market, which remains relatively
              strong overall.  In 1995 there was a modest improvement
              in the average occupancy level to 96% versus 95% the
              previous year, fueling a start in speculative
              construction. Approximately one million square feet of
              new speculative space should be available early in 1996,
              while another approximately three million square feet in
              speculative and/or build-to-suit properties are in the
              planning stages.  Total square footage in the submarket
              is approximately 70 million square feet.  Net absorption
              for the first three quarters of 1995 totaled
              approximately 1.6 million square feet.  Average market
              asking rates for comparable Class B buildings are up
              from 1994 levels by approximately 4%. 

              Employees

              The Partnership has no employees and, accordingly, the
              General Partner, the Partnership's investment adviser,
              LaSalle, and their affiliates and independent
              contractors perform services on behalf of the
              Partnership in connection with administering the affairs
              of the Partnership and operating properties for the
              Partnership.  The General Partner, LaSalle and their
              affiliates receive compensation in connection with such
              activities, as described above.  Compensation to the
              General Partner and its affiliates, and the terms of
              transactions between the Partnership and the 
















              <PAGE>11

              General Partner and its affiliates, are set forth in
              Items 11. and 13. below, to which reference is made for
              a description of those terms and the transactions
              involved.

              Item 2.  Properties

              The Partnership owns interests in the properties
              referred to under Item 1. above, to which reference is
              made for the name, location and description of each
              property.  All properties were acquired on an all-cash
              basis.

              Item 3.  Legal Proceedings

              The Partnership is not subject to any material pending
              legal proceedings.

              Item 4.  Submission of Matters to a Vote of Security
              Holders

              None.

                                      PART II

              Item 5. Market For The Partnership's Limited Partnership
              Interests and Related Security Holder Matters

              On February 15, 1996, there were 4,739 Limited Partners.
              There is no public market for the Units, and it is not
              anticipated that a public market for the Units will
              develop. T. Rowe Price Investment Services, Inc.
              ("Investment Services"), an affiliate of the General
              Partner, provides certain information to investors which
              may assist Limited Partners desiring to sell their
              Units, but provides only ministerial services in
              connection with such transactions. Since this
              arrangement does not constitute a market for the Units,
              it is possible that no prospective purchaser will be
              willing to pay the price specified by a prospective
              seller.

              The Partnership has a reinvestment plan, whereby the
              Limited Partners may elect to have their cash
              distributions automatically reinvested in additional
              Units of the Partnership, or fractions thereof, instead
              of receiving cash payments. The price of the Units sold
              under the plan was initially set at $50 per Unit. The
              Partnership Agreement provides that after the first year
              of the plan, the General Partner is to determine the
              fair market value of the Units to be sold pursuant to












              the plan; for 1994, the General Partner initially
              determined this value to be $39. After the proceeds of
              the Metropolitan Industrial sale were distributed in
              November, 1994, the price was reduced to $32. For 1995
              it was $31, after a $1 per Unit distribution from
              retained cash balances generated primarily from the
              reinvestment plan. As of February 15, 1996, 159,176
              Units had been purchased under the plan for a total
              investment of $6,677,000. Eleven thousand five hundred
              and fifteen additional Units are available for sale
              under the

              <PAGE>12

              Partnership's current registration statement. The
              Partnership will either file a registration statement
              later this year to enable it to continue to sell Units
              pursuant to the reinvestment plan, or terminate the
              plan.

              The Partnership also has a redemption plan, whereby
              Limited Partners have the opportunity to present some or
              all of their Units to the Partnership for redemption,
              and to have those Units redeemed provided the
              Partnership then has sufficient proceeds from the
              reinvestment plan available for this purpose. Under the
              redemption plan, the redemption price per Unit is 90% of
              the estimated fair market value of a Unit as determined
              from time to time. Completed redemption requests must be
              received in good order by the Partnership at least 60
              days prior to the end of a quarter for the Units to
              qualify for redemption at the end of that quarter. In
              addition, redemptions will only be permitted if at least
              one of the following conditions is satisfied: (i) total
              redemptions and transfers (other than Excluded
              Transfers, as defined below) during the Partnership's
              fiscal year do not exceed 5% of the Units outstanding;
              (ii) total redemptions and transfers (other than
              Excluded Transfers) during the Partnership's fiscal year
              do not exceed 10% of the Units outstanding and total
              transfers (other than redemptions and Excluded
              Transfers) do not exceed 2% of Units outstanding; or
              (iii) the General Partner has received an opinion of
              counsel satisfactory to the General Partner or a
              favorable Internal Revenue Service ("IRS") ruling that
              such transfer will not result in the Partnership being
              classified as a "publicly traded partnership" for such
              year. As of February 15, 1996, 79,752 Units had been
              redeemed for a total of $2,861,000. The plan may be
              terminated by the General Partner at any time. If the
              reinvestment plan is discontinued the redemption program
              may also be terminated.














              In 1987, the IRS adopted certain rules concerning
              "publicly traded partnerships." The effect of being
              classified as a publicly traded partnership would be
              that income produced by the Partnership would be
              classified as portfolio income rather than passive
              income. On November 29, 1995, the IRS adopted final
              regulations ("Final Regulations"), describing when
              interests in partnerships will be considered to be
              publicly traded. The Final Regulations do not take
              effect with respect to existing partnerships until the
              year 2006. Due to the nature of the Partnership's income
              and to the low volume of transfers of Units, it is not
              anticipated that the Partnership will be treated as a
              publicly traded partnership under currently applicable
              rules and interpretations or under the Final
              Regulations.






              <PAGE>13

              Distributions declared to the Limited Partners during
              the two most recent fiscal years are as follows:

                        Distribution                Amount of
                        for the                     Distributions 
                        Quarter Ended               per Unit

                        March 31, 1994                  $0.60
                        June 30, 1994                    0.60
                        September 30, 1994               8.45
                        December 31, 1994                1.60
                        March 31, 1995                   0.47
                        June 30, 1995                    0.47
                        September 30, 1995               0.47
                        December 31, 1995                0.47

              All of the foregoing distributions were paid from cash
              flows from operating activities, with the following
              exceptions. The distribution for the quarter ended
              September 30, 1994, included $7.85 per Unit consisting
              of the proceeds of the sale of the Metropolitan
              Industrial property. The distributions for 1994 included
              $0.31 from prior-years' operations, and the distribution
              for the quarter ended December 31, 1994, included $0.78
              from the proceeds of the reinvestment plan.

              There are no material legal restrictions on the
              Partnership's present or future ability to make
              distributions in accordance with the provisions of the
              Agreement of Limited Partnership. Reference is made to












              Management's Discussion and Analysis of Financial
              Condition and Results of Operations, below, for a
              discussion of the Partnership's ability to continue to
              make future distributions.

              At the end of 1995, the Partnership conducted its annual
              formal unit valuation. The valuation of the
              Partnership's properties was performed by the General
              Partner, and then reviewed by an independent
              professional appraiser to assess the analysis and
              assumptions utilized. The estimated investment value of
              limited partnership Units resulting from this process
              was $31 per Unit. Units cannot currently be sold at a
              price equal to this estimated value, and this valuation
              is not necessarily representative of the value of the
              Units when the Partnership ultimately liquidates its
              holdings.










              <PAGE>14

              Item 6.  Selected Financial Data

              The following sets forth a summary of the selected
              financial data for the Fund:

                   (Dollars in thousands except per-unit amounts)

                             YEARS ENDED DECEMBER 31, 

                                1995     1994      1993      1992      1991

              Total assets    $25,585  $26,206   $32,652   $33,129   $34,073 
              Total revenues   $3,706   $4,112    $4,230    $3,959    $3,525 
              Net income (loss)$1,044   $1,095    $1,358      $725     $(405)
              Net income (loss) 
                per Unit        $1.35    $1.45     $1.80     $0.97    $(0.54)
              Cash distributions 
              paid to:
                 Limited Partners $2,285   $7,700    $2,092    $1,944  $2,100 












                 General Partner  $24      $19       $21       $20     $21 
              Cash distributions 
                declared per Unit $1.88   $11.25     $2.57     $2.79   $2.65 


              Notes:  

              1.  The above financial data should be read in
              conjunction with the financial statements and the
              related notes appearing elsewhere in this report.

              2.  The figures above for Assets at year end and Net
              income (loss) include a  permanent value impairment of
              $733 in 1994 and valuation allowances (recoveries) of
              $(3) in 1994, $75 in 1993 and $510 in 1992, and a $1,737
              provision for loan loss  in 1991.  Also includes gain
              from the sale of the Metropolitan Industrial property of
              $577 in 1994.

              3.  The figures above for Net income (loss) per Limited
              Partner Unit include a permanent value impairment of
              $0.97 per Unit in 1994, and valuation allowances
              (recoveries) of $(.01) per Unit in 1994, $0.10 per Unit
              in 1993 and $0.68 per Unit in 1992, and a provision for
              loan loss of $2.33 per Unit in 1991.  Also includes gain
              from sale of the Metropolitan Industrial Building of
              $0.77 per Unit in 1994.









              <PAGE>15

              Item 7.  Management's Discussion and Analysis of
              Financial Conditions and Results of Operations 

              Liquidity and Capital Resources

              The Partnership originally sold 692,598 Units in
              connection with the public offering of Units, for a
              total of $34,630,000, including the contribution of
              $25,000 from the Initial Limited Partner. After
              deduction of organizational and offering costs of
              $2,078,000, the Partnership had $32,552,000 available
              for investment and cash reserves.

              The public offering of Units was terminated on September
              30, 1988, and additional Units will be sold only in












              connection with the Partnership's reinvestment plan. As
              of February 15, 1996, additional capital in the amount
              of $6,677,000 has been raised from cash distributions
              reinvested and 159,176 Units were issued in connection
              therewith. Of this amount $2,861,000 has been used to
              redeem Units. The amount of additional capital to be
              raised from this source in the future will depend on
              whether the General Partner elects to continue the
              reinvestment plan, as well as the size of the
              Partnership's cash distributions per Unit and the number
              of Units held by investors who elect to participate in
              the plan. There are no organizational or offering
              expenses associated with such proceeds. This capital
              will be used, to the extent necessary, to repurchase
              Units in connection with the Partnership's redemption
              plan; the balance will be available for investment in
              real estate or for cash reserves.

              The Partnership owns six properties or interests therein
              acquired on an all-cash basis (including one originally
              recorded as a loan). The Partnership has sold one
              property, the Metropolitan Industrial property, and on
              February 1, 1994, acquired an ownership interest in
              Fairchild Corporate Center (formerly known as Brinderson
              Plaza), which was previously classified as an
              in-substance foreclosed property that originated as a
              participating mortgage loan. The acquisition cost of the
              Partnership's real estate investments and subsequent
              improvements thereto was $34,693,000. The Partnership
              has sold one property, Metropolitan, with a cost basis,
              including capital improvements, of $5,532,000. The
              Partnership has also recorded provisions for loan loss,
              permanent value impairment, and net valuation allowances
              of $3,052,000. On the Partnership's balance sheet,
              investments in real estate also include an unaffiliated
              partner's minority interest in Goshen Plaza of $688,000.
              Therefore, the net investment in real estate before
              deduction for depreciation for financial reporting
              purposes is $26,797,000 as of December 31, 1995.





              <PAGE>16

              The Partnership expects to incur capital expenditures
              during 1996 totaling approximately $550,000, including
              $300,000 for tenant improvements and lease commissions,
              and $250,000 for other major repairs and improvements.
              With 19% of the square footage in the Partnership's
              portfolio expiring in 1996, the Partnership anticipates
              spending slightly more on leasing commissions and tenant
              improvements than in 1995. As of December 31, 1995, the












              Partnership maintained cash and cash equivalents
              aggregating $1,733,000, approximately $600,000 less than
              last year. Net cash provided by operating activities
              decreased, and expenditures for capital improvements
              increased due to increased leasing activity.
              The Partnership maintains cash balances to fund its
              operating and investing activities including the costs
              of tenant improvements and leasing commissions, costs
              which must be disbursed prior to the collection of any
              resultant revenues. The General Partner believes that
              1995 year-end cash balances and cash generated from
              operating activities in 1996 will be adequate to fund
              its current investing and operating needs. The
              Partnership's ability to continue to pay a quarterly
              distribution at recent historical levels will depend on
              results of operations and the General Partner's
              determination of the level of cash or cash equivalents
              which it is deemed appropriate for the Partnership to
              maintain. 

              Operations

              On January 1, 1996, the Partnership adopted Statement of
              Financial Accounting Standards (SFAS) No. 121,
              "Accounting for the Impairment of Long-Lived Assets and
              for Long-Lived Assets to Be Disposed Of," which changes
              the Partnership's current method of accounting for its
              real estate property investments when circumstances
              indicate that the carrying amount of a property may not
              be recoverable.  Measurement of an impairment loss on an
              operating property will now be based on the estimated
              fair value of the property rather than the sum of
              expected future cash flows.  Properties held for sale
              will continue to be reflected at the lower of historical
              cost or estimated fair value less anticipated selling
              costs.  No adjustment of the carrying values of the
              Partnership's real estate property investments was
              required at January 1, 1996 as a result of adopting SFAS
              No. 121.

              1995 v. 1994

              Net income from operations in 1995 was $1,044,000, an
              increase of $526,000 from 1994 (before gain on real
              estate sold). Properties held throughout both years
              contributed $675,000 over last year's operations.
              Metropolitan contributed $149,000 to net income before
              its sale in 1994 but nothing in 1995. The effect of
              increased bad debt expense in 1995 at Goshen Plaza, Kent
              Sea Park, and Tierrasanta was more than offset by not
              having any valuation adjustments this year compared with
              $730,000 in 1994. 














              <PAGE>17

              The absence of operations at Metropolitan accounted for
              a decline of $379,000 in revenues and $230,000 in
              expenses relative to 1994. Proceeds from the sale of
              Metropolitan in June 1994 contributed a gain of $577,000
              to net income in 1994.

              The leased status of the portfolio at the end of 1995
              was the same as it was in 1994, but the average for the
              year was lower, primarily driven by Goshen Plaza and
              Fairchild Corporate Center. Even so, revenue gains at
              other properties offset the effect of the declines at
              these two properties. 

              Within the expense categories, management fees
              experienced a sharp drop from 1994 primarily because
              there was less cash available for distribution in 1995.

              The cash position declined from the beginning of year
              level. Cash from operating activities declined by
              $325,000 during the year, and capital improvements
              increased $343,000. Proceeds from dividend reinvestments
              net of redemptions increased $540,000.

              The Partnership's net income of $1,044,000 for 1995
              equates to $1.35 per share compared with $1,095,000, or
              $1.45 per share, in 1994.

              Leases representing 19% of the portfolio's leasable
              square footage are scheduled to expire in 1996. These
              leases represent approximately 36% of the portfolio's
              rental income for 1995. This amount of potential lease
              turnover is normal for the types of properties in the
              portfolio, which typically leases to tenants under three
              to five year leases. The Burnham property is the only
              single-tenant property in the Partnership's portfolio.
              The tenant in this property accounted for less than 10%
              of the Partnership's revenue in 1995, and its lease does
              not expire until 2000. In addition, the Partnership has
              received an unsolicited offer to purchase the property,
              which is in the early stages of negotiation.

              Reconciliation of Financial and Tax Results

              For 1995, the Partnership's book net income was
              $1,044,000 and its taxable income was $1,414,000.
              Interest on the loan secured by Fairchild Corporate
              Center, which was recognized only for tax purposes, and
              bad debt expense, which was recognized only for book
              purposes, were the primary differences between the two.
              For 1994, the Partnership's book net income was
              $1,095,000, and its taxable income was $2,167,000. The
              allowance for permanent value impairment in connection












              with the Tierrasanta property was the primary difference
              between the two. For a complete reconciliation see Note
              8 to the Partnership's financial statements, which note
              is hereby incorporated by reference herein.



              <PAGE>18

              1994 v. 1993

              Excluding the effect of a permanent value impairment in
              connection with the Tierrasanta property and the sale of
              the Metropolitan Industrial property, the overall
              performance of the Partnership's portfolio improved in
              1994.  Rental revenues from the remaining properties
              were up $189,000 over their 1993 levels, and comparable
              operating expenses were only slightly higher, resulting
              in an increase in income from property operations,
              excluding valuation adjustments, of $98,000.

              The major reason for the decline in net income relative
              to 1993 was the $733,000 permanent value impairment
              recorded in connection with the Tierrasanta property. 
              The other non-operating event which influenced the year-
              over-year change in net income was the $577,000 gain on
              the sale of the Metropolitan Industrial property in June
              of 1994.  Unfortunately, the gain was not enough to
              offset the effects of the valuation adjustment and the
              loss of $284,000 of operating income from the
              Metropolitan Industrial property versus the prior year,
              so net income declined from $1,358,000 in 1993 to
              $1,095,000 in 1994.

              The absence of Metropolitan in the portfolio for half of
              the year resulted in a $416,000 decline in  rental
              income and a $132,000 decline in expenses.  In addition,
              because the proceeds of the sale were held by the Fund
              for approximately half of 1994, interest income was up
              by over $100,000.   Rental income from the remaining
              properties benefited from higher rental rates at
              Westbrook Commons and an increase in the average
              occupancy at Goshen Plaza.  The tenant reimbursement
              component of rental revenues was also up at both
              locations, although the overall effect on net income was
              offset by corresponding expenses at the properties.  

              Cash available for distribution was higher in 1994 and
              resulted in an increase in the management fee to the
              General Partner as well as in the distributions to the
              Limited Partners from the Partnership's operations.

              Item 8.  Financial Statements and Supplementary Data













              The financial statements appearing on pages 6 through 13
              of the Partnership s 1995 Annual Report to Limited
              Partners are incorporated by reference in this Form 10-K
              Annual Report.  The report on such financial statements
              of KPMG Peat Marwick LLP dated January 17, 1996, is
              filed as Exhibit 99(c) to this form 10-K Annual Report
              and is hereby incorporated by reference herein. 
              Financial Statement Schedule III, Consolidated Real
              Estate and Accumulated Depreciation, is filed as Exhibit
              99(b) to this Form 10-K Annual Report, and is reference
              herein.   



              <PAGE>19

              All other schedules are omitted either because the
              required information is not applicable or because the
              information is shown in the financial statements or
              notes thereto.

              Item 9.  Changes in and Disagreements with Accountants
              on Accounting and Financial Disclosure

              None.
                                      PART III

              Item 10.  Directors and Executive Officers of the
              Partnership

              The General Partner of the Partnership is T. Rowe Price
              Realty Income Fund IV Management, Inc. ("RIF IV
              Management"), 100 East Pratt Street, Baltimore, Maryland
              21202.  The General Partner has the primary
              responsibility for overseeing the selection, evaluation,
              structuring, negotiation, management, and liquidation of
              the Partnership's investments as well as the cash
              management of the Partnership's liquid assets and the
              administration of investor services of the Partnership,
              including general communications, periodic reports and
              distributions to Limited Partners, and filings with the
              Securities and Exchange Commission.  RIF IV Management
              is a wholly-owned subsidiary of T. Rowe Price Real
              Estate Group, Inc. ("Real Estate Group"), which is, in
              turn, a wholly-owned subsidiary of T. Rowe Price
              Associates, Inc. ("Associates").  Affiliates of the
              General Partner, T. Rowe Price Realty Income Fund I
              Management, Inc., T. Rowe Price Realty Income Fund II
              Management, Inc., and T. Rowe Price Realty Income Fund
              III Management, Inc. are the General Partners of other
              real estate limited partnerships sponsored by
              Associates.  Real Estate Group is investment manager to
              T. Rowe Price Renaissance Fund, Ltd., a Sales-
              Commission-Free Real Estate Investment ("Renaissance












              Fund"), a real investment trust sponsored by Associates. 
              Associates was founded in 1937 and as of December 31,
              1995 managed over $75 billion in assets. 

              As more fully discussed in Item 1, above, LaSalle is
              providing certain real estate advisory and other
              services to the Partnership. Upon execution of the
              formal contract between the Partnership and LaSalle,
              Gary C. Younker, Senior Vice President of LaSalle
              Partners Asset Management Limited, (an Affiliate of
              LaSalle) became the Chief Accounting Officer for the
              Partnership.  Born in 1948, Mr. Younker has been
              associated with LaSalle since 1976, and has served in
              his current position since 1988.








              <PAGE>20

              The directors and executive officers of Fund IV
              Management are as follows:

                                         Position with T. Rowe Price Realty
                    Name                 Income Fund IV Management, Inc.

                 James S. Riepe          Chairman of the Board,
                                         President, also Principal
                                         Executive Officer for the
                                         Partnership
                 Charles E. Vieth        Vice President, Director
                 Douglas O. Hickman      Vice President and Director
                 Henry H. Hopkins        Vice President and Director
                 Mark E. Rayford         Vice President
                 Lucy B. Robins          Vice President and Secretary
                 Mark B. Ruhe            Vice President
                 Alvin M. Younger, Jr.   Treasurer and Director
                 Kenneth J. Rutherford   Vice President
                 Joseph P. Croteau       Controller, also Principal
                                         Financial Officer for the
                                         Partnership

              Mr. Riepe was elected President in 1991.   Mr. Ruhe was
              first elected Vice President in 1988.  Mr. Vieth was
              first elected an officer and director in 1993.  Mr.
              Croteau was first elected as Controller in 1988, and
              designated as Principal Financial Officer in 1992.  Mr.
              Rutherford was first elected Vice President in 1994.  In
              all other cases these individuals have served in these
              capacities since the inception of Fund IV Management in












              November, 1987.  There is no family relationship among
              the foregoing directors or officers.

              The background and business experience of the foregoing
              individuals is as follows:

                 James S. Riepe (Born 1943) is Managing Director and
              Director, T. Rowe Price Associates, Inc. ("Associates")
              and Director of its Investment Services Division;
              President and Chairman of Real Estate Group, and each of
              the general partners of T. Rowe Price Realty Income Fund
              I, A No-Load Limited Partnership, T. Rowe Price Realty
              Income Fund II, America's Sales-Commission-Free Real
              Estate Limited Partnership, T. Rowe Price Realty Income
              Fund III, America's Sales-Commission-Free Real Estate
              Limited Partnership, and T. Rowe Price Realty Income
              Fund IV, America's Sales-Commission-Free Real Estate
              Limited Partnership (the "Realty Income Funds");
              Chairman of four of the 41 mutual funds sponsored by
              Associates on which he serves as a director or trustee;
              Chairman of New Age Media Fund; Director, Rh ne-Poulenc
              Rorer, Inc., a pharmaceuticals company.  Mr. Riepe
              joined Associates in 1982.




              <PAGE>21

                 Charles E. Vieth (Born 1956) is a Managing Director
              of Associates, and President of T. Rowe Price Retirement
              Plan Services, Inc., Director, Vice President and
              Manager of Real Estate Group, and Director and Vice
              President of each of the general partners of the Realty
              Income Funds.  Mr. Vieth joined Associates in 1982.

                 Douglas O. Hickman  (Born 1949) is President of T.
              Rowe Price Threshold Fund Associates, Inc. and a Vice
              President of Associates.  He is also a Vice President
              and Director of each of the general partners of the
              Realty Income Funds and serves as a member of the
              investment committees for the T. Rowe Price Threshold
              Funds.  Mr. Hickman joined Associates in 1985.

                 Henry H. Hopkins  (Born 1942) is a Managing
              Director, Director, and Legal Counsel of Associates.  In
              addition, Mr. Hopkins is Vice President and Director of
              each of the general partners of the Realty Income Funds. 
              He is also a Vice President certain of the mutual funds
              managed by Associates.  Mr. Hopkins joined Associates in
              1972.

                 Mark E. Rayford  (Born 1951) is a Managing Director
              of Associates and Manager of Retail Operations.  In












              addition, Mr. Rayford is President of T. Rowe Price
              Services, Inc., and Vice President each of the general
              partners of the Realty Income Funds.  Mr. Rayford joined
              Associates in 1982.

                 Lucy B. Robins  (Born 1952) is Vice President and
              Associate Legal Counsel of Associates and Vice President
              of Real Estate Group and each of the general partners of
              the Realty Income Funds.  Ms. Robins joined Associates
              in 1986.

                 Mark B. Ruhe  (Born 1954) is an Asset Manager for
              Real Estate Group, and Vice President of the Investment
              Manager and each of the general partners of the Realty
              Income Funds.  Mr. Ruhe joined Associates in 1987.

                 Alvin M. Younger, Jr.  (Born 1949) is Treasurer and
              Director of each of the general partners of the Realty
              Income Funds and a Managing Director, Secretary and
              Treasurer of Associates, and Secretary and Treasurer of
              Real Estate Group.  Mr. Younger joined Associates in
              1973.

                 Kenneth J. Rutherford  (Born 1963) is Assistant to
              the Director of Associates' Investment Services
              Division, and Assistant Vice President of each of the
              general partners of the Realty Income Funds.  Mr.
              Rutherford joined Associates in 1992.  From 1990 to 1992
              he was a student at the Stanford Graduate School of
              Business.




              <PAGE>22

                 Joseph P. Croteau  (Born 1954) is a Vice President
              and Controller of Associates, and Controller of each of
              the general partners of the Realty Income Funds.  Mr.
              Croteau joined Associates in 1987.

              No Forms 3, Forms 4, Forms 5, or amendments to any of
              them, were furnished to the Partnership during its most
              recent fiscal year. Based on a review of and written
              representations pursuant to  Item 405(b)(2)(i) of
              Regulation S-K, none of the directors, officers, or
              beneficial owners of more than 10% of the Units, if any,
              nor the General Partner failed to file on a timely basis
              reports required by Section 16(a) of the Exchange Act
              during the most recent fiscal or prior fiscal years.

              Item 11.  Executive Compensation














              The directors and executive officers of the General
              Partner receive no current or proposed remuneration from
              the Partnership.

              The General Partner is entitled to receive a share of
              cash distributions and a share of profits or losses as
              described under the captions "Compensation and Fees,"
              and "Income and Losses and Cash Distributions" of the
              Prospectus, on pages 6-7 and 31-34 respectively, which
              pages are incorporated herein by reference.

              For a discussion of compensation and fees to which the
              General Partner is entitled, see Item 13., which is
              incorporated herein by reference.

              As discussed in Item 1, above, LaSalle receives
              reimbursement from the Partnership for certain expenses
              incurred in performance of its responsibilities under
              the advisory contract.  In addition, under the contract,
              LaSalle receives from the General Partner a portion of
              the compensation and distributions received by the
              General Partner from the Partnership.  Mr. Younker is a
              limited partner of LaSalle and therefore indirectly
              receives compensation with respect to payments made to
              LaSalle by the Partnership or the General Partner. 
              However, the amount of this compensation attributable to
              services he performs for the Partnership is not
              material.

              In addition to the foregoing, certain officers and
              directors of the General Partner receive compensation
              from Associates and/or its affiliates (but not from the
              Partnership) for services performed for various
              affiliated entities, which may include services
              performed for the Partnership. Such compensation may be
              based, in part, on the performance of the Partnership. 
              Any portion of such compensation which may be
              attributable to such performance is not material.




              <PAGE>23

              Item 12.  Security Ownership of Certain Beneficial
              Owners and Management

              The Partnership is a limited partnership which issues
              units of limited partnership interest.  No limited
              partner is known by the Partnership to own beneficially
              more than 5% of the outstanding interests of the
              Partnership.














              The percentage of outstanding interests of the
              Partnership held by all directors and officers of the
              General Partner is less than 1%.  Certain officers
              and/or directors of the General Partner presently own
              securities in Associates.  As of February 1, 1996, the
              directors and officers of the General Partner, as a
              group, beneficially owned 5.76% of the common stock of
              Associates, including options to purchase 282,870 shares
              exercisable within 60 days of February 1, 1996, and
              shares as to which voting power is shared with others. 
              Of this amount, Mr. Riepe owned 2.36% of such stock
              (550,939 shares, including 42,400 shares which may be
              acquired by Mr. Riepe upon the exercise of stock
              options, 70,000 shares held in trusts for members of Mr.
              Riepe's family and 20,000 shares held by a member of
              Riepe's family, as to which Mr. Riepe disclaims
              beneficial ownership, and 41,000 shares held in a
              charitable foundation of which Mr. Riepe is a trustee
              and as to which Mr. Riepe has shared voting and
              disposition power). Mr. Hopkins owned 1.10% (317,484
              shares, including 54,000 shares which may be acquired by
              Mr. Hopkins upon the exercise of stock options).  No
              other director or officer owns 1% or more of the common
              stock of Associates.

              There exists no arrangement, known to the Partnership,
              the operation of which may at any subsequent date result
              in a change in control of the Partnership.

              Item 13.  Certain Relationships and Related Transactions

              The General Partner and its affiliates are permitted to
              engage in transactions with the Partnership as described
              under the captions "Compensation and Fees," and
              "Conflicts of Interest" of the Prospectus, on pages 6-
              11, which pages are hereby incorporated by reference
              herein.

              In 1995, the General Partner has been reimbursed for
              expenses incurred by it in the administration of the
              Partnership and the operation of the Partnership's
              investments in the amount of $58,000. The General
              Partner's management fee in 1995 was $85,000 and its
              share of cash distributions totaled $15,000.  An
              affiliate of the General Partner received a fee of
              $6,000 from the money market mutual funds in which the
              Partnership made its interim cash investments.




              <PAGE>24

                                      PART IV












              Item 14.  Exhibits, Financial Statement Schedules, and
              Reports on Form 8-K

              (a) The following documents are filed as part of this
              report:

                 (1)   Financial Statements:

              Incorporated by reference from the indicated pages of
              the Partnership's 1995 Annual Report to Limited
              Partners:

                                                           Page

               Consolidated Balance Sheets at              6
                    December 31, 1995 and 1994
               Consolidated Statements of Operations       7
                    for each of the three years in 
                    the period ended December 31, 1995
               Consolidated Statements of Partners' Capital 8
                    for each of the three years in the 
                    period ended December 31, 1995
               Consolidated Statements of Cash Flows for   9
                    each of the three years in the period 
                    ended December 31, 1995
               Notes to Consolidated Financial Statements        10-13

              Independent Auditors' Report - Incorporated by reference
              from Exhibit 99(c) hereof.

               (2)  Financial Statement Schedules:

                  III - Consolidated Real Estate and Accumulated
                  Depreciation, incorporated by reference to Exhibit
                  99(b) hereof.

                  All other schedules are omitted because they are not
                  applicable or the required information is presented
                  in the financial statements and notes hereto.

               (3)  Exhibits

               3, 4.    (a)  Agreement of Limited Partnership of the
                             Partnership dated November 17, 1987, as
                             amended and restated as of February 23,
                             1988, included as Exhibit A to the
                             Prospectus of the Partnership, dated
                             February 26, 1988, File Number 33-18965,
                             as filed with the Commission pursuant to
                             Rule 424(b) ("the Prospectus"),
                             incorporated by reference herein.















              <PAGE>25

                        (b)  Certificate of Limited Partnership,
                             incorporated by reference to Exhibit
                             3,4(b) to the Partnership's Registration
                             Statement, File No. 33-19865, as filed on
                             December 9, 1987.

                        (c)  Amendment No. 5 to Amended and Restated
                             Limited Partnership Agreement,
                             incorporated by reference to Exhibit
                             3,4(g) to Post-Effective Amendment No. 1
                             to the Partnership's Registration
                             Statement, File No. 33-18965, filed on
                             February 25, 1988 ("Post-Effective
                             Amendment No. 1").

                    10.     (a)         Advisory Agreement dated as of
                                        July 15, 1991 by and between
                                        the Partnership, the General
                                        Partner, and LaSalle Advisors
                                        Limited Partnership,
                                        incorporated by reference to
                                        Exhibit 10(c) of the
                                        registrant's report on Form
                                        10-K for the year ended
                                        December 31, 1991.

                         (b)            Agreement of Purchase and Sale
                                        dated May 11, 1994, by and
                                        between the Partnership as 
                                        Seller and TA Realty
                                        Corporation as Purchaser for
                                        the sale of the Metropolitan
                                        Industrial property,
                                        incorporated by reference to
                                        Exhibit 10(d) of the
                                        registrant's report on Form
                                        10-K for the year ended
                                        December 31, 1994 ("the 1994
                                        10-K").
               
                         (c)            Amendment to Agreement of
                                        Purchase and Sale, dated June
                                        17, 1994, by and between the
                                        Partnership and TA Realty
                                        Corporation, incorporated by
                                        reference to Exhibit 10(e) of
                                        the 1994 10-K.

                         (d)            Assignment of Agreement of
                                        Purchase and Sale, dated June
                                        16, 1994, from TA Realty
                                        Corporation to The Realty












                                        Associates Fund III, L.P,
                                        incorporated by reference to
                                        Exhibit 10(f) of the 1994 10-
                                        K.

                    13.  Annual Report for the year ended December
                         31, 1995, distributed to limited partners on
                         or about March 1, 1995. 

                    24.  Consent of Independent Auditors, KPMG Peat
                         Marwick LLP

                    27.  Financial Data Schedule




              <PAGE>26

                    99.     (a)         Pages 6-11, 17-24 and 31-34 of
                                        the Prospectus of the
                                        Partnership dated July 15,
                                        1991, incorporated by
                                        reference to Exhibit 99(a) of
                                        the registrant's report on
                                        Form 10-K for the year ended
                                        December 31, 1994, File Number

                                        0-17636  

                         (b)            Financial Statement Schedule
                                        III -  Consolidated Real
                                        Estate and Accumulated
                                        Depreciation.

                         (c)            Report of KPMG Peat Marwick
                                        LLP dated 
                                        January 17, 1995 regarding the
                                        financial statements of the
                                        Partnership.

              (b)   Reports on Form 8-K

                       The following reports on Form 8-K were filed
                       for the last quarter of the period covered by
                       this report - None.












































              <PAGE>27

                                     SIGNATURES

              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:

              Dated:              March 27, 1996           T. ROWE
                                                           PRICE
                                                           REALTY
                                                           INCOME FUND
                                                           IV,
                                                           AMERICA'S
                                                           SALES-
                                                           COMMISSION-
                                                           FREE REAL
                                                           ESTATE
                                                           LIMITED PARTNERSHIP

                                  By:   T. Rowe Price Realty Income
                                        Fund IV Management, Inc.,
                                        General Partner


                                        By:    /s/James S. Riepe       
                                           
                                               James S. Riepe,
                                               President












              Pursuant to the requirements of the Securities Exchange
              Act of 1934, this report has been signed below by the
              following persons on behalf of the Registrant and in the
              capacities (with respect to the General Partner) and on
              the dates indicated:



              /s/James S. Riepe                Date:March 27, 1996
              James S. Riepe, 
              Director and Chairman of 
              the Board, President
              T. Rowe Price Realty Income 
              Fund IV Management, Inc., 
              Principal Executive Officer
              for the Partnership



              /s/Henry H. Hopkins          Date: March 27, 1996
              Henry H. Hopkins,
              Director and Vice President,
              T. Rowe Price Realty Income Fund IV
              Management, Inc.










              <PAGE>28


              /s/Douglas O. Hickman        Date: March 20, 1996
              Douglas O. Hickman,
              Director and Vice President,
              T. Rowe Price Realty Income Fund IV
              Management, Inc.




              /s/Alvin M. Younger, Jr.     Date: March 27, 1996
              Alvin M. Younger, Jr.,
              Director and Treasurer,
              T Rowe Price Realty Income Fund IV
              Management, Inc.















              /s/Charles E. Vieth          Date: March 27, 1996
              Charles E. Vieth,
              Vice President and Director,
              T. Rowe Price Realty Income Fund IV
              Management, Inc.



              /s/Joseph P. Croteau         Date: March 27, 1996
              Joseph P. Croteau, Controller,
              Principal Financial Officer for 
              the Partnership






















































              The Annual Report to Limited Partners for the Year ended
              December 31, 1995 should be inserted here.

              
ANNUAL REPORT
FOR THE PERIOD ENDED
DECEMBER 31, 1995

FELLOW PARTNERS:

Net income from operations in 1995 was $1,044,000, an increase of $526,000
from 1994. Properties held throughout both years contributed $675,000 over
last year's operations. Metropolitan contributed $149,000 to net income before
its sale in 1994 but nothing this year. The effect of increased bad debt
expense in 1995 at Goshen Plaza, Kent Sea Park, and Tierrasanta was more than
offset by not having any valuation adjustments this year compared with
$730,000 in 1994. 

      The absence of operations at Metropolitan accounted for a decline of
$379,000 in revenues and $230,000 in expenses relative to 1994. Proceeds from
the sale of Metropolitan in June 1994 contributed a gain of $577,000 to net
income in 1994.

      The leased status of the portfolio at the end of 1995 was the same as it
was in 1994, but the average for the year was lower, primarily driven by
Goshen Plaza and Fairchild Corporate Center. Even so, revenue gains at other
properties offset the effect of the declines at these two properties. 

      Within the expense categories, management fees experienced a sharp drop
from 1994 primarily because there was less cash available for distribution in
1995

      The cash position declined from the beginning of year level. Cash from
operating activities declined by $325,000 during the year, and capital
improvements increased $343,000. Proceeds from dividend reinvestments net of
redemptions increased $540,000.

Distributions 

The Fund declared a fourth-quarter distribution from operations of $0.47 per
unit, bringing the total for the year to $1.88.  

      We plan to distribute $0.40 per unit from operations in the first
quarter of 1996. While we hope to maintain this rate throughout the year, we
will evaluate it in each subsequent quarter based on operations, the cash
needs of the Fund, and/or any dispositions.

Unit Valuation

As we do at each year-end, we employed a third-party appraiser to review and
assess the analysis and assumptions used in determining an estimated current
unit value. These interim valuations are not necessarily representative of the
value of your units when the Fund ultimately liquidates its holdings, nor
could you sell your units today at a price equal to the current estimated
value. 

      At the end of 1995, the estimated value was $31.00 per unit, unchanged
from last year's amount after deducting the February 1995 payment from cash
reserves. Basically, the estimated fair values of the properties were up
slightly, but no one property changed, either up or down, to any meaningful
extent.

Outlook

With the exception of Goshen Plaza, we are optimistic about the prospects for
the portfolio in 1996. We have received an attractive unsolicited offer to
purchase the Burnham Building, and we are in the process of evaluating whether
to accept it. Renovations undertaken at Fairchild appear to be contributing to
increased interest in the property, and the modernization project at Westbrook
Commons has made a real difference in the center's appearance. In addition,
most of the markets in which the properties operate seem to be improving, and
we hope the more favorable environment will have an impact on your portfolio.

      Sincerely,




      James S. Riepe
      Chairman

February 15, 1996

INVESTMENT ADVISOR'S REPORT

As discussed in recent reports, the real estate market is slowly improving,
with some segments such as industrial recovering more rapidly than others such
as office properties. The absence of meaningful new construction combined with
continued net positive absorption in all segments has begun to attract not
only opportunistic capital but also some institutional capital into the real
estate sector, which is a favorable development.

      The results of Russell-NCREIF Index, which measures income returns and
changes in values for real estate investments, reflect the general state of
the market. From 1991 through 1993 property values experienced average annual
declines of approximately 10%. This rate slowed as values decreased by 4% and
1% for the 12 months ended September 30, 1994 and 1995, respectively. Income
returns of 9% during each of those two years more than offset the value
declines, resulting in positive total returns for the index for the first time
since September 1990.

      The index also identifies returns by product type and by geographical
region. As anticipated, because of the weak operating environment, office
buildings have not performed as well as other product types, with value
declines of approximately 3% for the 12 months ended September 30, 1995. This
is an improvement, however, over the average 14% per year drop over the last
four years. Industrial properties, on the other hand, appreciated in value by
3% for the 12 months ended September 30, 1995. In that same period, other real
estate product types, such as retail and multi-family, performed better than
they had in prior years.

      Property values in geographic regions depend significantly on the local
economy. The South, where values in general depreciated less than 1% for the
12 months ended September 30, 1995, continues to outperform other regions, but
even its recovery has been prolonged due to the depressed energy business.
Value declines in the East and Midwest have moderated, and the Western region
has experienced a dramatic improvement recently. In 1994, property values in
the West were down significantly but, for the 12 months ended September 30,
1995, declined only around 1%. In analyzing this information, it is clear that
the multi-family and industrial segments are heavily influencing the results,
since the office segment in the West declined approximately 5%. We continue to
see increased leasing activity and improved economics for owners.

      We are encouraged by the positive annual total returns of the
Russell-NCREIF Index for the past two years. We are also heartened by the
performance of Realty Income Fund IV's portfolio, which experienced a slight
increase in value compared to a modest decline in the Russell-NCREIF Index. 

Property Highlights

The primary improvement at the property level occurred at Tierrasanta where
occupancy was 23 percentage points over the previous year. However, this gain
was offset primarily by declines at Goshen Plaza and Fairchild Corporate
Center. In general, occupancy and rental rates in the markets where your
properties operate are stable to rising.

Real Estate Investments
_____________________________________________________________________________

                       Gross         % Leased
                       Leasable      ___________________
                       Area          Prior       Current    1996 Lease
Property               (Sq. Ft.)     Year-End    Year-End   Expirations
________               ________      ________    ________   __________

Tierrasanta             104,200          77%        100%         38%
Goshen Plaza             45,500          93          75           9
Westbrook Commons       121,600          97          96           6
Burnham Building         71,200         100         100           0
Kent Sea Park           138,200         100          97          21
Fairchild Corporate 
  Center                104,800          85          73          31
                      _________       _____       _____       _____
Fund Total              585,500          92%         92%         19%

      Tierrasanta: Although we lost one financially troubled tenant during the
year, we were able to re-lease its space, bringing the leased status to 100%
by year-end. In total, three new leases for 31,000 square feet and one
renewal/expansion were signed at this San Diego property. One lease with a
tenant who occupies 38% of the space expires in 1996, and we are actively
working with this tenant on renewal terms. It is too early to predict an
outcome of the negotiations.

      Goshen Plaza: One new and one renewal lease representing 2,600 square
feet, or 6% of the total space, was signed during the year at this Montgomery
Village, Maryland, retail center. Four financially troubled tenants who
occupied 9,400 square feet left, however, causing occupancy to decline
substantially. The lost tenants included the restaurant which occupied 4,200
square feet. We are aggressively marketing these spaces, and have generated
considerable activity, but do not foresee any imminent lease signings.
Occupancy in the market rose approximately two percentage points during the
year, while average rental rates have increased almost 15%. We hope some of
this favorable market environment will translate into better results at Goshen
in 1996.

      Westbrook Commons: One new and six renewal leases were signed during the
year, generally at higher rates than on the prior leases, at this suburban
Chicago retail center. However, one tenant did not renew, and two tenants left
because of credit issues, causing occupancy to decline slightly. During the
year, we initiated a strategy to update the appearance of the center in order
to make it more attractive to prospective tenants. The property's face lift
has made a substantial difference. 

      Burnham Building: This South Florida industrial property remains fully
occupied by a single tenant (and its sub-tenants) under a long-term lease.
IBM, which has been a dominant factor in this market, continued to reduce its
commitment to space in the area. Even so, the market appeared to stabilize as
the year progressed, and available industrial space has become somewhat
scarce.

      Kent Sea Park: We signed two new tenants during the year at this Seattle
area industrial project, but overall occupancy dropped slightly because we
were unable to re-lease all of the space vacated by a tenant with financial
difficulties. Occupancy in the submarket improved modestly - from 95% to 96% -
during the year, fueling a start in speculative construction. Approximately
one million square feet of speculative space should be available early in
1996, while another three million square feet in speculative and/or
build-to-suit properties are in the planning stages. Market rental rates have
increased around 5% for typical industrial space during the past 12 months.

      Fairchild Corporate Center: The leased status declined at this Orange
County, California, office property primarily due to the loss on the last day
of the year of a tenant representing 9% of the space. Additionally, over the
course of the year, two tenants who leased a total of 6% of the property left
for financial reasons and three other tenants vacated upon their lease
expirations. On the positive side, we completed the first phase of renovating
the two buildings, renamed the property, and overall activity has picked up.
Three new tenants were signed for 16% of the site, and six existing tenants
renewed and/or expanded for another 8% of the property. 

Outlook

The year 1996 looks fairly promising except for Goshen Plaza. All of the
markets in which the properties compete are showing signs of improving
occupancy and/or rental rates. In addition, renovations were started and/or
completed at two of the properties, and we believe these expenditures will
make each property more attractive to potential tenants as well as to those
who are considering renewal. Thus, we face the coming year with optimism that
operating results can improve over 1995.

LaSalle Advisors
February 15, 1996

REAL ESTATE HOLDINGS
December 31, 1995
(In thousands)

                                                 Accumu-      Current 
Property       Type and      Date       Total    lated De-    Carrying
Name           Location      Acquired   Cost*    preciation   Amount
_____________  _____________ _________  _______  __________   ________
Tierrasanta    Business Park   5/88     $ 4,592    $(1,142)   $ 3,450
               San Diego,
               California

Fairchild
Corporate      Office          7/88       1,451       (166)     1,285
Center         Irvine,
               California

Goshen Plaza   Retail          11/90      7,138       (896)     6,242
               Gaithersburg,
               Maryland


Westbrook      Retail          12/90      5,645       (688)     4,957
Commons        Westchester,
               Illinois

Burnham
Building       Warehouse       1/91       2,589       (304)     2,285
               Boca Raton,
               Florida

Kent Sea Park  Business Park   8/91       5,382       (652)     4,730
               Kent, Washington

                                        _______    _______    _______
                                        $26,797    $(3,848)   $22,949
                                        _______    _______    _______
                                        _______    _______    _______

*Includes original purchase price, subsequent improvements, and, in the case
of Tierrasanta and Fairchild Corporate Center, reductions for permanent
impairments.

CONSOLIDATED BALANCE SHEETS
(In thousands)

                                             December 31,  December 31,
                                                 1995          1994
                                              ___________  ____________
Assets
Real Estate Property Investments
   Land. . . . . . . . . . . . . . . . . . . .   $  8,502     $ 8,502
   Buildings and Improvements. . . . . . . . .     18,295      17,771
                                                 ________    ________
                                                   26,797      26,273
 Less:  Accumulated Depreciation
 and Amortization. . . . . . . . . . . . . . .     (3,848)     (3,171)
                                                 ________    ________
                                                   22,949      23,102
Cash and Cash Equivalents. . . . . . . . . . .      1,733       2,327
Accounts Receivable (less allowances of
$367 and $123) . . . . . . . . . . . . . . . .        623         622
Other Assets . . . . . . . . . . . . . . . . .        280         155
                                                 ________    ________
                                                 $ 25,585     $26,206
                                                 ________    ________
                                                 ________    ________

Liabilities and Partners' Capital
Security Deposits and Prepaid Rents. . . . . .   $    200     $   197
Accrued Real Estate Taxes. . . . . . . . . . .        353         326
Accounts Payable and
Other Accrued Expenses . . . . . . . . . . . .        234         320
Minority Interest. . . . . . . . . . . . . . .        688         688
                                                 ________    ________
Total Liabilities. . . . . . . . . . . . . . .      1,475       1,531
Partners' Capital. . . . . . . . . . . . . . .     24,110      24,675
                                                 ________    ________
                                                 $ 25,585     $26,206
                                                 ________    ________
                                                 ________    ________

The accompanying notes are an integral part of the consolidated financial
statements. 

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per-unit amounts)

                                            Years Ended December 31,
                                             1995     1994     1993
                                            _______  _______  _______

Revenues
Rental Income. . . . . . . . . . . . . . .  $3,616   $ 3,950  $ 4,177
Interest Income. . . . . . . . . . . . . .      90       162       53
                                           _______   _______  _______
                                             3,706     4,112    4,230
                                           _______   _______  _______

Expenses
Property Operating Expenses. . . . . . . .     940       823      837
Real Estate Taxes. . . . . . . . . . . . .     589       635      642
Depreciation and Amortization. . . . . . .     786       873      819
Decline of Property Values . . . . . . . .      -        730       75
Management Fee to General Partner. . . . .      85       267      192
Partnership Management Expenses. . . . . .     262       266      273
Amortization of Organization Costs . . . .      -         -        34
                                           _______   _______  _______
                                             2,662     3,594    2,872
                                           _______   _______  _______

Net Income from Operations before
   Real Estate Sold. . . . . . . . . . . .   1,044       518    1,358
Gain on Real Estate Sold . . . . . . . . .      -        577       - 
                                           _______   _______  _______
Net Income . . . . . . . . . . . . . . . .  $1,044   $ 1,095  $ 1,358
                                           _______   _______  _______
                                           _______   _______  _______

Activity per Limited Partnership Unit
Net Income . . . . . . . . . . . . . . . .  $ 1.35   $  1.45  $  1.80
                                           _______   _______  _______
                                           _______   _______  _______
Cash Distributions Declared
  from Operations. . . . . . . . . . . . .  $ 1.88   $  2.62  $  2.57
  as Return of Capital . . . . . . . . . .      -       0.78       - 
  from Sale Proceeds . . . . . . . . . . .      -       7.85       - 
                                           _______   _______  _______
Total Distributions Declared . . . . . . .  $ 1.88   $ 11.25  $  2.57
                                           _______   _______  _______
                                           _______   _______  _______
Weighted Average Number of
Units Outstanding. . . . . . . . . . . . . 766,443   747,028  747,595
                                           _______   _______  _______
                                           _______   _______  _______

The accompanying notes are an integral part of the consolidated financial
statements. 

CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
(In thousands)

                                            General   Limited
                                            Partner  Partners   Total
                                           ________  ________ ________


Balance, December 31, 1992 . . . . . . . .  $  (40)  $31,700  $31,660
Net Income . . . . . . . . . . . . . . . .      14     1,344    1,358
Reinvestments in Units . . . . . . . . . .      -        887      887
Redemptions of Units . . . . . . . . . . .      -       (653)    (653)
Cash Distributions . . . . . . . . . . . .     (21)   (2,092)  (2,113)
                                           _______   _______  _______
Balance, December 31, 1993 . . . . . . . .     (47)   31,186   31,139
Net Income . . . . . . . . . . . . . . . .       8     1,087    1,095
Reinvestments in Units . . . . . . . . . .      -        792      792
Redemptions of Units . . . . . . . . . . .      -       (632)    (632)
Cash Distributions . . . . . . . . . . . .     (19)   (7,700)  (7,719)
                                           _______   _______  _______
Balance, December 31, 1994 . . . . . . . .     (58)   24,733   24,675
Net Income . . . . . . . . . . . . . . . .      10     1,034    1,044
Reinvestments in Units . . . . . . . . . .      -        999      999
Redemptions of Units . . . . . . . . . . .      -       (299)    (299)
Cash Distributions . . . . . . . . . . . .     (24)   (2,285)  (2,309)
                                           _______   _______  _______
Balance, December 31, 1995 . . . . . . . .  $  (72)  $24,182  $24,110
                                           _______   _______  _______
                                           _______   _______  _______

The accompanying notes are an integral part of the consolidated financial
statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

                                             Years Ended December 31,
                                             1995      1994     1993
                                            _______   _______  _______

Cash Flows from Operating Activities
Net Income . . . . . . . . . . . . . . . .  $1,044   $ 1,095  $ 1,358
Adjustments to Reconcile
Net Income to Net Cash
 Provided by Operating Activities
   Depreciation and Amortization . . . . .     786       873      819
   Decline of Property Values. . . . . . .      -        730       75
   Gain on Real Estate Sold. . . . . . . .      -       (577)      - 
   Change in Accounts Receivable,
  Net of Allowances. . . . . . . . . . . .      (1)     (139)      55
   Increase in Other Assets. . . . . . . .    (125)      (27)     (37)
   Other Changes in
  Assets and Liabilities . . . . . . . . .     (56)       18       78   
                                           _______   _______  _______
Net Cash Provided by
Operating Activities . . . . . . . . . . .   1,648     1,973    2,348
                                           _______   _______  _______

Cash Flows from Investing Activities
Proceeds from Property Disposition . . . .      -      5,870       - 
Investments in Real Estate . . . . . . . .    (633)     (290)    (339)
                                           _______   _______  _______
Net Cash Provided by (Used in)
Investing Activities . . . . . . . . . . .    (633)    5,580     (339)
                                           _______   _______  _______
Cash Flows from Financing Activities
Cash Distributions . . . . . . . . . . . .  (2,309)   (7,719)  (2,113)
Reinvestments in Units . . . . . . . . . .     999       792      887
Redemptions of Units . . . . . . . . . . .    (299)     (632)    (653)
                                           _______   _______  _______
Net Cash Used in Financing Activities. . .  (1,609)   (7,559)  (1,879)
                                           _______   _______  _______

Cash and Cash Equivalents
Net Increase (Decrease) during Year. . . .    (594)       (6)     130
At Beginning of Year . . . . . . . . . . .   2,327     2,333    2,203
                                           _______   _______  _______
At End of Year . . . . . . . . . . . . . .  $1,733   $ 2,327  $ 2,333
                                           _______   _______  _______
                                           _______   _______  _______

The accompanying notes are an integral part of the consolidated financial
statements. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION

T. Rowe Price Realty Income Fund IV, America's Sales-Commission-Free Real
Estate Limited Partnership (the "Partnership"), was formed on November 17,
1987, under the Delaware Revised Uniform Limited Partnership Act for the
purpose of acquiring, operating, and disposing of existing income-producing
commercial and industrial real estate properties. T. Rowe Price Realty Income
Fund IV Management, Inc., is the sole General Partner. The initial offering
resulted in the sale of 692,598 limited partnership units at $50 per unit.

      The Partnership has a reinvestment plan whereby the Limited Partners may
elect to have their cash distributions automatically reinvested in additional
units of the Partnership, or fractions thereof, instead of receiving cash
payments. The reinvestment price per unit is the estimated fair market value
of the unit as determined by the General Partner in accordance with the
partnership agreement. As of December 31, 1995, 154,299 units had been
purchased under this plan for total reinvestment of $6,526,000.

      The Partnership also has a redemption plan whereby Limited Partners may
request that the Partnership redeem their units. Since September 30, 1992, the
redemption price of a unit has been equal to 90% of the estimated fair market
value of a unit as determined by the General Partner in accordance with the
partnership agreement. As of December 31, 1995, 74,691 units had been redeemed
under this plan for a total of $2,724,000.

      In accordance with provisions of the partnership agreement, income from
operations is allocated and related cash distributions are generally paid to
the General and Limited Partners at the rates of 1% and 99%, respectively.
Sale or refinancing proceeds are generally allocated first to the Limited
Partners in an amount equal to their capital contributions, next to the
Limited Partners to provide specified returns on their adjusted capital
contributions, next 3% to the General Partner, with any remaining proceeds
allocated 85% to the Limited Partners and 15% to the General Partner. Gain on
property sold is generally allocated first between the General Partner and
Limited Partners in an amount equal to the depreciation previously allocated
from the property and then in the same ratio as the distribution of sale
proceeds. Cash distributions, if any, are made quarterly based upon cash
available for distribution, as defined in the partnership agreement. Cash
available for distribution will fluctuate as changes in cash flows and
adequacy of cash balances warrant.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Partnership's financial statements are prepared in accordance with
generally accepted accounting principles which requires the use of estimates
and assumptions by the General Partner.

      The accompanying consolidated financial statements include the accounts
of the Partnership and its pro-rata share of the accounts of Tierrasanta 234,
Fairchild 234, and Penasquitos 34 (Westbrook Commons), all of which are
California general partnerships, in which the Partnership has 40%, 20%, and
50% interests, respectively. The other partners in these ventures are
affiliates of the Partnership. Additionally, the accounts of Goshen Road
Limited Partnership, a Maryland limited partnership in which the Partnership
has a 90% controlling general partnership interest have been consolidated. All
intercompany accounts and transactions have been eliminated in consolidation.

      The Partnership will review its real estate property investments for
impairment whenever events or changes in circumstances indicate that the
property carrying amounts may not be recoverable. Such a review results in the
Partnership recording a provision for impairment of the carrying value of its
real estate investments whenever the estimated future cash flows from a
property's operations and projected sale are less than the property's net
carrying value. The General Partner believes that the estimates and
assumptions used in evaluating the carrying value of the Partnership's
properties are appropriate; however, changes in market conditions and
circumstances could occur in the near term which would cause these estimates
to change.

      Depreciation is calculated primarily on the straight-line method over
the estimated useful lives of buildings and improvements, which range from
five to 40 years. Lease commissions and tenant improvements are capitalized
and amortized over the life of the lease using the straight-line method.

      Organization costs were amortized over a five-year period.

      Cash equivalents consist of money market mutual funds, the cost of which
approximates fair value.

      The Partnership uses the allowance method of accounting for doubtful
accounts. Provisions for uncollectible tenant receivables in the amounts of
$269,000, $102,000, and $65,000 were recorded in 1995, 1994, and 1993,
respectively. Bad debt expense is included in Property Operating Expenses.

      Rental income is recognized by the Partnership on a straight-line basis
over the term of each lease. Rental income accrued, but not yet billed, is
included in Other Assets and aggregates $192,000 and $106,000 at December 31, 
1995 and 1994, respectively.

      Under provisions of the Internal Revenue Code and applicable state
taxation codes, partnerships are generally not subject to income taxes;
therefore, no provision has been made for such taxes in the accompanying
consolidated financial statements.

NOTE 3 - TRANSACTIONS WITH RELATED PARTIES AND OTHER ENTITIES

As compensation for services rendered in managing the affairs of the
Partnership, the General Partner earns a partnership management fee equal to
9% of net operating proceeds. The General Partner earned partnership
management fees of $85,000, $267,000, and $192,000 in 1995, 1994, and 1993,
respectively. In addition, the General Partner's share of cash available for
distribution from operations, as discussed in Note 1, totaled $15,000,
$20,000, and $21,000 in 1995, 1994, and 1993, respectively.

      In accordance with the partnership agreement, certain operating expenses
are reimbursable to the General Partner. The General Partner's reimbursement
of such expenses totaled $58,000, $55,000, and $57,000 for communications and
administrative services performed on behalf of the Partnership during 1995,
1994, and 1993, respectively.

      An affiliate of the General Partner earned a normal and customary fee of
$6,000, $17,000, and $5,000 from the money market mutual funds in which the
Partnership made its interim cash investments during 1995, 1994, and 1993,
respectively.

      LaSalle Advisors Limited Partnership ("LaSalle") is the Partnership's
advisor and is compensated for its advisory services directly by the General
Partner. LaSalle is reimbursed by the Partnership for certain operating
expenses pursuant to its contract with the Partnership to provide real estate
advisory, accounting, and other related services to the Partnership. LaSalle's
reimbursement for such expenses during each of the last three years totaled
$80,000.

      An affiliate of LaSalle earned $71,000, $61,000, and $31,000 in 1995,
1994, and 1993, respectively, as property manager for several of the
Partnership's properties.

      The General Partner and LaSalle are entitled to an acquisition fee for
services rendered in connection with the purchase of properties and the
investment in participating mortgage loans. Such fee represents 2% of the
Limited Partners' capital contributions and is paid separately, with respect
to each investment on a pro-rata basis. In 1993, the General Partner and
LaSalle each earned $43,000 for the Metropolitan Industrial acquisition after
certain economic contingencies arising at the time of acquisition in 1992 were
satisfied.

NOTE 4 - PROPERTY DISPOSITION

In June 1994, the Partnership sold Metropolitan Industrial and received net
proceeds of $5,870,000. The net book value of this property at the time of
disposition was $5,293,000, after accumulated depreciation expense. Results of
operations at the property were $149,000 in 1994 and $417,000 in 1993.

NOTE 5 - FAIRCHILD CORPORATE CENTER

Fairchild Corporate Center, formerly known as Brinderson Plaza, was acquired
outright on February 1, 1994 by a corporation, the stockholders of which are
the Partnership and certain other affiliated partnerships. The previously
established valuation allowance for this property was reduced $3,000 and the
remaining allowance of $582,000 (including $75,000 arising in 1993) was
reclassified as a reduction in the carrying value of the property. Prior to
February 1, 1994, the Partnership's underlying investment in Fairchild, in the
form of a mortgage loan and minority equity interest, was accounted for as an
in-substance foreclosed property in the Partnership's financial statements.

NOTE 6 - PROPERTY VALUATIONS

Based upon a review of current market conditions, estimated holding period,
and future performance expectations of each property, the General Partner
determined that the net carrying value of Tierrasanta may not be fully
recoverable from future operations and disposition and recognized an
impairment charge of $733,000 in 1994.

      On January 1, 1996, the Partnership adopted Statement of Financial
Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," which changes
the Partnership's current method of accounting for its real estate property
investments when circumstances indicate that the carrying amount of a property
may not be recoverable. Measurement of an impairment loss on an operating
property will now be based on the estimated fair value of the property rather
than the sum of expected future cash flows. Properties held for sale will
continue to be reflected at the lower of historical cost or estimated fair
value less anticipated selling costs. No adjustment of the carrying values of
the Partnership's real estate property investments was required at January 1,
1996 as a result of adopting SFAS No. 121.

NOTE 7 - LEASES

Future minimum rentals to be received by the Partnership under noncancelable
operating leases in effect as of December 31, 1995, are:

       Fiscal Year     (in thousands)
       __________
          1996            $ 2,332
          1997              1,871
          1998              1,485
          1999                998
          2000                693
       Thereafter           3,878
                          _______
         Total            $11,257
                          _______
                          _______

NOTE 8 - RECONCILIATION OF FINANCIAL STATEMENT TO TAXABLE INCOME

As described in Note 2, the Partnership has not provided for an income tax
liability; however, certain timing differences exist between amounts reported
for financial reporting and federal income tax purposes. These differences are
summarized below for years ended December 31:


                                             1995      1994      1993
                                           ________  ________  ________
                                                  (in thousands)

Book net income. . . . . . . . . . . . .   $ 1,044  $ 1,095   $ 1,358
Allowances for:
  Uncollectible accounts
    receivable . . . . . . . . . . . . .       246       74        43
  Property valuations. . . . . . . . . .        -       730        75
Normalized and
   prepaid rents . . . . . . . . . . . .       (93)     (65)       (3)
Interest income. . . . . . . . . . . . .       252      254       206
Depreciation . . . . . . . . . . . . . .         7       85      (42)
Accrued expenses . . . . . . . . . . . .       (42)      (6)        7
                                          ________ ________  ________
Taxable income . . . . . . . . . . . . .   $ 1,414  $ 2,167   $ 1,644
                                          ________ ________  ________
                                          ________ ________  ________

NOTE 9 - SUBSEQUENT EVENT

The Partnership declared a quarterly cash distribution of $.47 per unit to
Limited Partners of the Partnership as of the close of business on December
31, 1995. The Limited Partners will receive $363,000, and the General Partner
will receive $4,000.

INDEPENDENT AUDITORS' REPORT

To the Partners
T. Rowe Price Realty Income Fund IV,
America's Sales-Commission-Free Real Estate Limited Partnership:

We have audited the accompanying consolidated balance sheets of T. Rowe Price
Realty Income Fund IV, America's Sales-Commission-Free Real Estate Limited
Partnership and its consolidated ventures as of December 31, 1995 and 1994,
and the related consolidated statements of operations, partners' capital and
cash flows for each of the years in the three-year period ended December 31,
1995. These consolidated financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

      We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall consolidated financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

      In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of T. Rowe
Price Realty Income Fund IV, America's Sales-Commission-Free Real Estate
Limited Partnership and its consolidated ventures as of December 31, 1995 and
1994, and the results of their operations and their cash flows for each of the
years in the three-year period ended December 31, 1995, in conformity with
generally accepted accounting principles.

      KPMG Peat Marwick LLP

Chicago, Illinois
January 17, 1996

The Fund is currently considering whether to continue or terminate the
Reinvestment Plan. The following information is provided in order to enable
the Fund to register additional Units later this year should management decide
to continue the plan.

MARKET FOR THE FUND'S LIMITED PARTNERSHIP INTERESTS AND RELATED SECURITY
HOLDER MATTERS

On February 15, 1996, there were 4,739 Limited Partners. There is no public
market for the Units, and it is not anticipated that a public market for the
Units will develop. T. Rowe Price Investment Services, Inc. ("Investment
Services"), an affiliate of the General Partner, provides certain information
to investors which may assist Limited Partners desiring to sell their Units,
but provides only ministerial services in connection with such transactions.
Since this arrangement does not constitute a market for the Units, it is
possible that no prospective purchaser will be willing to pay the price
specified by a prospective seller.

The Fund has a reinvestment plan, whereby the Limited Partners may elect to
have their cash distributions automatically reinvested in additional Units of
the Fund, or fractions thereof, instead of receiving cash payments. The price
of the Units sold under the plan was initially set at $50 per Unit. The Fund's
Partnership Agreement provides that after the first year of the plan, the
General Partner is to determine the fair market value of the Units to be sold
pursuant to the plan; for 1994, the General Partner initially determined this
value to be $39. After the proceeds of the Metropolitan Industrial sale were
distributed in November, 1994, the price was reduced to $32. For 1995 it was
$31, after a $1 per Unit distribution from retained cash balances generated
primarily from the reinvestment plan. As of February 15, 1996, 159,176 Units
had been purchased under the plan for a total investment of $6,677,000. Eleven
thousand five hundred and fifteen additional Units are available for sale
under the Fund's current registration statement. The Fund will either file a
registration statement later this year to enable it to continue to sell Units
pursuant to the reinvestment plan, or terminate the plan.

The Fund also has a redemption plan, whereby Limited Partners have the
opportunity to present some or all of their Units to the Fund for redemption,
and to have those Units redeemed provided the Fund then has sufficient
proceeds from the reinvestment plan available for this purpose. Under the
redemption plan, the redemption price per Unit is 90% of the estimated fair
market value of a Unit as determined from time to time. Completed redemption
requests must be received in good order by the Fund at least 60 days prior to
the end of a quarter for the Units to qualify for redemption at the end of
that quarter. In addition, redemptions will only be permitted if at least one
of the following conditions is satisfied: (i) total redemptions and transfers
(other than Excluded Transfers, as defined below) during the Fund's fiscal
year do not exceed 5% of the Units outstanding; (ii) total redemptions and
transfers (other than Excluded Transfers) during the Fund's fiscal year do not
exceed 10% of the Units outstanding and total transfers (other than
redemptions and Excluded Transfers) do not exceed 2% of Units outstanding; or
(iii) the General Partner has received an opinion of counsel satisfactory to
the General Partner or a favorable Internal Revenue Service ("IRS") ruling
that such transfer will not result in the Fund being classified as a "publicly
traded partnership" for such year. As of February 15, 1996, 79,752 Units had
been redeemed for a total of $2,861,000. The plan may be terminated by the
General Partner at any time. If the reinvestment plan is discontinued the
redemption program may also be terminated.

In 1987, the IRS adopted certain rules concerning "publicly traded
partnerships." The effect of being classified as a publicly traded partnership
would be that income produced by the Fund would be classified as portfolio
income rather than passive income. On November 29, 1995, the IRS adopted final
regulations ("Final Regulations"), describing when interests in partnerships
will be considered to be publicly traded. The Final Regulations do not take
effect with respect to existing partnerships until the year 2006. Due to the
nature of the Partnership's income and to the low volume of transfers of
Units, it is not anticipated that the Partnership will be treated as a
publicly traded partnership under currently applicable rules and
interpretations or under the Final Regulations.

Distributions declared to the Limited Partners during the two most recent
fiscal years are as follows:

        Distribution for the            Amount of
            Quarter Ended        Distributions per Unit
          _________________       ____________________

           March 31, 1994                $0.60
           June 30, 1994                  0.60
           September 30, 1994             8.45
           December 31, 1994              1.60
           March 31, 1995                 0.47
           June 30, 1995                  0.47
           September 30, 1995             0.47
           December 31, 1995              0.47

All of the foregoing distributions were paid from cash flows from operating
activities, with the following exceptions. The distribution for the quarter
ended September 30, 1994, included $7.85 per Unit consisting of the proceeds
of the sale of the Metropolitan Industrial property. The distributions for
1994 included $0.31 from prior-years' operations, and the distribution for the
quarter ended December 31, 1994, included $0.78 from the proceeds of the
reinvestment plan.

There are no material legal restrictions on the Fund's present or future
ability to make distributions in accordance with the provisions of the
Agreement of Limited Partnership. Reference is made to Management's Discussion
and Analysis of Financial Condition and Results of Operations, below, for a
discussion of the Fund's ability to continue to make future distributions.

At the end of 1995, the Fund conducted its annual formal unit valuation. The
valuation of the Fund's properties was performed by the General Partner, and
then reviewed by an independent professional appraiser to assess the analysis
and assumptions utilized. The estimated investment value of limited
partnership Units resulting from this process was $31 per Unit. Units cannot
currently be sold at a price equal to this estimated value, and this valuation
is not necessarily representative of the value of the Units when the Fund
ultimately liquidates its holdings.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Liquidity and Capital Resources

The Fund originally sold 692,598 Units in connection with the public offering
of Units, for a total of $34,630,000, including the contribution of $25,000
from the Initial Limited Partner. After deduction of organizational and
offering costs of $2,078,000, the Fund had $32,552,000 available for
investment and cash reserves.

The public offering of Units was terminated on September 30, 1988, and
additional Units will be sold only in connection with the Fund's reinvestment
plan. As of February 15, 1996, additional capital in the amount of $6,677,000
has been raised from cash distributions reinvested and 159,176 Units were
issued in connection therewith. Of this amount $2,861,000 has been used to
redeem Units. The amount of additional capital to be raised from this source
in the future will depend on whether the General Partner elects to continue
the reinvestment plan, as well as the size of the Fund's cash distributions
per Unit and the number of Units held by investors who elect to participate in
the plan. There are no organizational or offering expenses associated with
such proceeds. This capital will be used, to the extent necessary, to
repurchase Units in connection with the Fund's redemption plan; the balance
will be available for investment in real estate or for cash reserves.

The Fund owns six properties or interests therein acquired on an all-cash
basis (including one originally recorded as a loan). The Fund has sold one
property, the Metropolitan Industrial property, and on February 1, 1994,
acquired an ownership interest in Fairchild Corporate Center (formerly known
as Brinderson Plaza), which was previously classified as an in-substance
foreclosed property that originated as a participating mortgage loan. The
acquisition cost of the Fund's real estate investments and subsequent
improvements thereto was $34,693,000. The Fund has sold one property,
Metropolitan, with a cost basis, including capital improvements, of
$5,532,000. The Fund has also recorded provisions for loan loss, permanent
value impairment, and valuation allowances of $3,052,000. On the Fund's
balance sheet, investments in real estate also include an unaffiliated
partner's minority interest in Goshen Plaza of $688,000. Therefore, the net
investment in real estate before deduction for depreciation for financial
reporting purposes is $26,797,000 as of December 31, 1995.

The Fund expects to incur capital expenditures during 1996 totaling
approximately $550,000, including $300,000 for tenant improvements and lease
commissions, and $250,000 for other major repairs and improvements. With 19%
of the square footage in the Fund's portfolio expiring in 1996, the Fund
anticipates spending slightly more on leasing commissions and tenant
improvements than in 1995. As of December 31, 1995, the Fund maintained cash
and cash equivalents aggregating $1,733,000, approximately $600,000 less than
last year. Net cash provided by operating activities decreased, and
expenditures for capital improvements increased due to increased leasing
activity.

The Fund maintains cash balances to fund its operating and investing
activities including the costs of tenant improvements and leasing commissions,
costs which must be disbursed prior to the collection of any resultant
revenues. The General Partner believes that 1995 year-end cash balances and
cash generated from operating activities in 1996 will be adequate to fund its
current investing and operating needs. The Fund's ability to continue to pay a
quarterly distribution at recent historical levels will depend on results of
operations and the General Partner's determination of the level of cash or
cash equivalents which it is deemed appropriate for the Fund to maintain. 

OPERATIONS

1995 v. 1994

A discussion of the Fund's 1995 results of operations and distributions paid
appears in the Chairman's Letter on page 1 of this Annual Report. The Fund's
net income of $1,044,000 for 1995 equates to $1.35 per share compared with
$1,095,000, or $1.45 per share, in 1994.

Leases representing 19% of the portfolio's leasable square footage are
scheduled to expire in 1996. These leases represent approximately 36% of the
portfolio's rental income for 1995. This amount of potential lease turnover is
normal for the types of properties in the portfolio, which typically leases to
tenants under three to five year leases. The Burnham property is the only
single-tenant property in the Fund's portfolio. The tenant in this property
accounted for less than 10% of the Fund's revenue in 1995, and its lease does
not expire until 2000. In addition, the Fund has received an unsolicited offer
to purchase the property, which is in the early stages of negotiation.

1994 v. 1993

Excluding the effect of a permanent value impairment in connection with the
Tierrasanta property and the sale of the Metropolitan Industrial property, the
overall performance of the Fund's portfolio improved in 1994. Rental revenues
from the remaining properties were up $189,000 over their 1993 levels, and
comparable operating expenses were only slightly higher, resulting in an
increase in income from property operations, excluding valuation adjustments,
of $98,000.

The major reason for the decline in net income relative to 1993 was the
$733,000 permanent value impairment recorded in connection with the
Tierrasanta property. The other non-operating event which influenced the
year-over-year change in net income was the $577,000 gain on the sale of the
Metropolitan Industrial property in June of 1994. Unfortunately, the gain was
not enough to offset the effects of the valuation adjustment and the loss of
$284,000 of operating income from the Metropolitan Industrial property versus
the prior year, so net income declined from $1,358,000 in 1993 to $1,095,000
in 1994.

The absence of Metropolitan in the portfolio for half of the year resulted in
a $416,000 decline in rental income and a $148,000 decline in expenses. In
addition, because the proceeds of the sale were held by the Fund for
approximately half of 1994, interest income was up by over $100,000. Rental
income from the remaining properties benefited from higher rental rates at
Westbrook Commons and an increase in the average occupancy at Goshen Plaza.
The tenant reimbursement component of rental revenues was also up at both
locations, although the overall effect on net income was offset by
corresponding expenses at the properties. 

Cash available for distribution was higher in 1994 and resulted in an increase
in the management fee to the General Partner as well as in the distributions
to the Limited Partners from the Fund's operations.

Reconciliation of Financial and Tax Results 

For 1995, the Fund's book net income was $985,000 and its taxable income was
$1,414,000. Interest on the loan secured by Fairchild Corporate Center, which
was recognized only for tax purposes, and bad debt expense, which was
recognized only for book purposes, were the primary differences between the
two. For 1994, the Fund's book net income was $1,095,000, and its taxable
income was $2,167,000. The allowance for permanent value impairment in
connection with the Tierrasanta property was the primary difference between
the two. For a complete reconciliation see Note 8 to the Fund's financial
statements, which note is hereby incorporated by reference herein.