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


                          U. S. SECURITIES AND EXCHANGE
                        COMMISSION Washington, D.C. 20549


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



                                   FORM 10-QSB


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



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

                  For the quarterly period ended March 31, 2007


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



                         Commission file number 0-13523

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP
             Organized pursuant to the Laws of the State of Maryland


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



        Internal Revenue Service - Employer Identification No. 52-1328767

                 11200 Rockville Pike, Rockville, Maryland 20852

                                 (301) 468-9200


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



Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the  registrant  was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes [X ] No [ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]





--------------------------------------------------------------------------------
<PAGE>

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                              INDEX TO FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2007


                                                                         Page

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheets
           - March 31, 2007 and December 31, 2006........................  1

         Consolidated Statements of Operations and Accumulated Losses
           - for the three months ended March 31, 2007 and 2006..........  2

         Consolidated Statements of Cash Flows
           - for the three months ended March 31, 2007 and 2006..........  3

         Notes to Consolidated Financial Statements
           - March 31, 2007 and 2006.....................................  4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations..................................... 14

Item 3.  Controls and Procedures......................................... 18


PART II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities................................. 19

Item 5.  Other Information............................................... 19

Item 6.  Exhibits........................................................ 19

Signature................................................................ 20


<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>
                                                                                        March 31,      December 31,
                                                                                          2007            2006
                                                                                      -------------   -------------
                                                                                       (Unaudited)
<S>                                                                                   <C>             <C>
Investments in partnerships .......................................................   $  2,465,552    $  2,434,786
Investment in partnerships held for sale or transfer ..............................      3,198,498       3,181,996
Cash and cash equivalents .........................................................      7,924,568       8,079,400
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $64,096 and $69,455, respectively ............         51,061          56,555
Property purchase costs,
  net of accumulated amortization of $77,531 and $80,249, respectively ............         54,332          57,934
Sale proceeds receivable ..........................................................           --            27,235
Other assets ......................................................................         33,806          35,309
                                                                                      ------------    ------------

      Total assets ................................................................   $ 13,727,817    $ 13,873,215
                                                                                      ============    ============



                        LIABILITIES AND PARTNERS' DEFICIT


Due on investments in partnerships ................................................   $ 11,101,081    $ 11,101,081
Accrued interest payable ..........................................................     55,460,184      54,197,877
Accounts payable and accrued expenses .............................................        134,365         189,474
                                                                                      ------------    ------------

      Total liabilities ...........................................................     66,695,630      65,488,432
                                                                                      ------------    ------------

Commitments and contingencies

Partners' deficit:

  Capital paid in:
    General Partners ..............................................................          2,000           2,000
    Limited Partners ..............................................................     73,501,500      73,501,500
                                                                                      ------------    ------------

                                                                                        73,503,500      73,503,500

  Less:
    Accumulated distributions to partners .........................................    (19,161,317)    (19,161,317)
    Offering costs ................................................................     (7,562,894)     (7,562,894)
    Accumulated losses ............................................................    (99,747,102)    (98,394,506)
                                                                                      ------------    ------------

      Total partners' deficit .....................................................    (52,967,813)    (51,615,217)
                                                                                      ------------    ------------

      Total liabilities and partners' deficit .....................................   $ 13,727,817    $ 13,873,215
                                                                                      ============    ============
</TABLE>

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

                                       -1-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                             AND ACCUMULATED LOSSES

                                   (Unaudited)

<TABLE>
<CAPTION>
                                            For the three months ended
                                                     March 31,
                                          ------------------------------
                                               2007            2006
                                          -------------    -------------
<S>                                       <C>              <C>
Share of income from partnerships .....   $      39,822    $      41,329
                                          -------------    -------------

Other revenue and  expenses:

  Revenue:
    Interest ..........................         102,111           78,865
                                          -------------    -------------

  Expenses:
    Interest ..........................       1,262,307        1,269,986
    Management fee ....................          93,750           93,750
    General and administrative ........          90,509           70,506
    Professional fees .................          46,313           40,300
    Amortization of deferred costs ....           1,650            2,880
                                          -------------    -------------

                                              1,494,529        1,477,422
                                          -------------    -------------

      Total other revenue and expenses       (1,392,418)      (1,398,557)
                                          -------------    -------------


Net loss ..............................      (1,352,596)      (1,357,228)

Accumulated losses, beginning of period     (98,394,506)    (105,127,245)
                                          -------------    -------------

Accumulated losses, end of period .....   $ (99,747,102)   $(106,484,473)
                                          =============    =============


Net loss allocated
  to General Partners (1.51%) .........   $     (20,424)   $     (20,494)
                                          =============    =============

Net loss allocated
  to Initial and Special
  Limited Partners (1.49%) ............   $     (20,154)   $     (20,223)
                                          =============    =============

Net loss allocated
  to Additional Limited Partners (97%)    $  (1,312,018)   $  (1,316,511)
                                          =============    =============

Net loss per unit of
  Additional Limited Partner Interest,
    based on 73,337 units outstanding .   $      (17.89)   $      (17.95)
                                          =============    =============
</TABLE>

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

                                       -2-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                For the three months ended
                                                                                         March 31,
                                                                                ---------------------------
                                                                                    2007           2006
                                                                                ------------   ------------
<S>                                                                             <C>            <C>
Cash flows from operating activities:
  Net loss ..................................................................   $(1,352,596)   $(1,357,228)

  Adjustments to reconcile net loss to net cash used in operating activities:
    Share of income from partnerships .......................................       (39,822)       (41,329)
    Amortization of deferred costs ..........................................         1,650          2,880

    Changes in assets and liabilities:
      Decrease in other assets ..............................................         1,503            521
      Increase in accrued interest payable ..................................     1,262,307      1,269,986
      Decrease in accounts payable and accrued expenses .....................       (55,109)       (57,227)
                                                                                -----------    -----------

        Net cash used in operating activities ...............................      (182,067)      (182,397)
                                                                                -----------    -----------

Cash flows from investing activities:
  Collection of sale proceeds receivable ....................................        27,235           --
                                                                                -----------    -----------

Net decrease in cash and cash equivalents ...................................      (154,832)      (182,397)

Cash and cash equivalents, beginning of period ..............................     8,079,400      7,995,351
                                                                                -----------    -----------

Cash and cash equivalents, end of period ....................................   $ 7,924,568    $ 7,812,954
                                                                                ===========    ===========
</TABLE>

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

                                       -3-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I.,  Inc. (CRI), the Managing  General  Partner,  the
accompanying   unaudited   consolidated   financial   statements   reflect   all
adjustments,  consisting  of normal  recurring  accruals,  necessary  for a fair
presentation of the financial  position of Capital Realty  Investors-IV  Limited
Partnership  (the  Partnership)  as of March 31,  2007,  and the  results of its
operations  and its cash flows for the three month  periods ended March 31, 2007
and 2006. The results of operations for the interim period ended March 31, 2007,
are not necessarily indicative of the results to be expected for the full year.

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in conformity  with  accounting  principles  generally  accepted in the
United  States of America (US GAAP) and with the  instructions  to Form  10-QSB.
Certain  information and accounting policies and footnote  disclosures  normally
included in financial  statements  prepared in conformity with US GAAP have been
condensed or omitted pursuant to such instructions. These condensed consolidated
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial  statements  and notes thereto  included in the  Partnership's  annual
report on Form 10-KSB at December 31, 2006.


2.   NEW ACCOUNTING PRONOUNCEMENTS

     In September  2006, the Securities and Exchange  Commission  ("SEC") issued
Staff  Accounting  Bulletin  No.  108,  "Considering  the  Effects of Prior Year
Misstatements   when   Quantifying   Misstatements  in  Current  Year  Financial
Statements" ("SAB No. 108"). SAB No. 108 requires quantification of errors using
both  a  balance  sheet  approach  and  an  income  statement  approach  in  the
determination  of  materiality  in  relation to a  misstatement.  SAB No. 108 is
effective  the first  fiscal year ending after  November  15,  2006.  Management
believes SAB No. 108 will not have any impact on the Partnership.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under generally accepted  accounting
principles.  Although SFAS No. 157 applies  (amends) the  provisions of existing
FASB  and  AICPA  pronouncements,  it  does  not  require  any  new  fair  value
measurements,  nor  does it  establish  valuation  standards.  SFAS  No.  157 is
effective for fiscal years  beginning  after  November 15, 2007.  Management has
determined that SFAS No. 157 will have no material impact to the Partnership.


3.   INVESTMENTS IN PARTNERSHIPS

a.   Due on investments in partnerships and accrued interest payable
     ---------------------------------------------------------------

                              Purchase money notes
                              --------------------

     The  Partnership's  obligations  with respect to its  investments  in Local
Partnerships,  in the  form  of  nonrecourse  purchase  money  notes  having  an
aggregate  principal  balance of $11,101,081 plus aggregate  accrued interest of
$55,460,184  as of March 31, 2007, are payable in full upon the earliest of: (i)
sale or refinancing of the respective Local Partnership's rental property;  (ii)
payment in full of the respective Local  Partnership's  permanent loan; or (iii)
maturity.

                                       -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

     The  collateral  that  secured  the  purchase  money  note  related  to the
following property was transferred to the noteholders during 2006.

<TABLE>
<CAPTION>


     Property                            Principal            Date          Disposition
     --------                           ----------       --------------     -----------
     <S>                                <C>              <C>                <C>
     Harborview                         $3,000,000       September 2006     Transferred

</TABLE>

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of May 11, 2007.

<TABLE>
<CAPTION>
                                                         Accrued Interest
                                                              As of
     Property                            Principal        March 31, 2007      Maturity
     --------                           -----------      ----------------   -----------
     <S>                                <C>              <C>                <C>
     Crescent Gardens - Second Note     $  434,000          $ 1,671,858       07/31/99
     Westport Village (1)                  840,000            2,497,525       09/01/99
     Pilgrim Tower East                  1,450,000 (2)        4,309,283       11/30/03
     Cedar Point                         1,320,000            3,590,352       08/30/04
     Thornwood House                     1,775,000            4,648,522       08/30/04
     Jewish Federation                   1,350,000           13,658,483       10/31/04

</TABLE>

     (1)  In receivership.
     (2)  Remaining principal, after partial payment.

     The  purchase  money note secured by the  Partnership's  interest in Asbury
Tower Associates Limited  Partnership (Asbury Tower) was due to mature on August
31, 2004.  However,  the  noteholder has agreed to extend the maturity date on a
month to month basis until such time as the noteholder provides a 30 day advance
notice to the Partnership.  As of March 31, 2007, principal and accrued interest
due on the purchase money note were  $3,432,081 and  $22,362,811,  respectively.
The Local  Managing  General  Partner is currently  negotiating  the sale of the
property  related to Asbury Towers to an affiliate.  Proceeds from the sale will
be used to payoff the purchase  money note at a discount.  There is no assurance
that the sale of the property will occur.

     Due to the  impending  sale of the  property  owned by  Asbury  Tower,  the
Partnership's  basis in the Local  Partnership,  along with the net  unamortized
amount of acquisition fees and property purchase costs, which totaled $53,727 at
both March 31, 2007 and December 31, 2006, have been  reclassified to investment
in  partnerships  held for sale or  transfer  in the  accompanying  consolidated
balance sheets.

     The remaining  purchase  money note related to  Northridge  Park matures in
2025.  As of March 31,  2007,  principal  and  accrued  interest  balances  were
$500,000 and $2,721,350, respectively.

     As  of  March  31,  2007,   Westport  Village  is  in   receivership.   The
Partnership's  non-recourse  purchase money notes and accrued  interest  totaled
$840,000 and $2,497,525,  respectively at March 31, 2007. The Partnership is not
anticipating any loss resulting from the anticipated change in ownership.

     The purchase money notes,  which are  nonrecourse to the  Partnership,  are
generally  secured  by  the  Partnership's  interest  in  the  respective  Local
Partnerships.  There is no assurance  that the underlying  properties  will have


                                       -5-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

sufficient appreciation and equity to enable the Partnership to pay the purchase
money notes'  principal and accrued  interest when due. If a purchase money note
is not paid in accordance with its terms,  the  Partnership  will either have to
renegotiate  the terms of repayment or risk losing its  partnership  interest in
the  respective  Local  Partnership.  In the event  that a  purchase  money note
remains unpaid upon maturity,  the noteholder may have the right to foreclose on
the Partnership's interest in the related Local Partnership.

     The  Partnership's  inability  to pay  certain of the  purchase  money note
principal and accrued interest balances when due, and the resulting  uncertainty
regarding the Partnership's  continued  ownership  interest in the related Local
Partnerships,  does not adversely impact the Partnership's  financial  condition
because the  purchase  money  notes are  nonrecourse  and secured  solely by the
Partnership's interest in the related Local Partnerships.  Therefore, should the
investment in any of the Local  Partnerships  with matured or maturing  purchase
money notes not produce  sufficient  value to satisfy the related purchase money
notes, the  Partnership's  exposure to loss is limited because the amount of the
nonrecourse indebtedness of each of the matured or maturing purchase money notes
exceeds the  carrying  amount of the  investment  in each of the  related  Local
Partnerships.  Thus, even a complete loss of the Partnership's interest in these
Local  Partnerships  would not have a material  adverse  impact on the financial
condition of the Partnership.

     The Managing General Partner continues to investigate possible alternatives
to reduce the Partnership's debt obligations.  These alternatives include, among
others, retaining the cash available for distribution to meet the purchase money
note  requirements,  paying off certain  purchase  money  notes at a  discounted
price, extending the due dates of certain purchase money notes,  refinancing the
respective  properties'  underlying  debt, or selling the underlying real estate
and using the  Partnership's  share of the  proceeds to pay or buy down  certain
purchase money note  obligations.  Although the Managing General Partner has had
some success applying these strategies in the past, the Managing General Partner
cannot assure that these  strategies  will be  successful in the future.  If the
Managing  General  Partner is unable to negotiate  an  extension  or  discounted
payoff,  in the event that the purchase money notes remain unpaid upon maturity,
the noteholders may have the right to foreclose on the Partnership's interest in
the related Local Partnerships.  In the event of a foreclosure or other transfer
of the Partnership's  interest, the excess of the nonrecourse  indebtedness over
the  carrying  amount  of the  Partnership's  investment  in the  related  Local
Partnership  will result in a taxable gain. This gain will be taxable to Limited
Partners at a federal  tax rate of up to 35.0%.  Additionally,  the  Partnership
would lose its investment in the Local Partnership and,  likewise,  its share of
any future cash  distributed by the Local  Partnership  from rental  operations,
mortgage  debt  refinancings,  or the sale of the real  estate.  Of the thirteen
Local  Partnerships  in which the  Partnership is invested as of March 31, 2007,
the six Local  Partnerships  with  associated  purchase  money  notes which have
matured,  or which mature  through  March 31, 2008,  and which remain  unpaid or
unextended  as of May 11, 2007,  represented  the following  percentages  of the
Partnership's total distributions  received from Local Partnerships and share of
income from Local Partnerships for the immediately preceding two calendar years.

                               Percentage of Total       Partnership's Share of
                              Distributions Received           Loss from
      For the Year Ending     from Local Partnerships      Local Partnerships
      -------------------     -----------------------    ----------------------

      December 31, 2005                0.0%                   $ (8,741)
      December 31, 2006                1.6%                   $547,048


                                       -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3. INVESTMENTS IN PARTNERSHIPS - Continued

     The  Managing  General  Partner  continues  to  address  the  maturity  and
impending  maturity of the Partnership's  debt obligations and to seek solutions
that will provide the most favorable outcome to the Limited  Partners.  However,
there can be no assurance that these strategies will be successful.

     Interest  expense on the  Partnership's  purchase money notes for the three
month  periods ended March 31, 2007 and 2006,  was  $1,262,307  and  $1,269,986,
respectively.  The  accrued  interest  payable on the  purchase  money  notes of
$55,460,184  and  $54,197,877  as of March  31,  2007  and  December  31,  2006,
respectively,  is due upon the  earliest  of:  (i)  sale or  refinancing  of the
respective  Local  Partnership's  rental  property;  (ii) payment in full of the
respective Local Partnership's permanent loan; or (iii) maturity.

                                   Cedar Point
                                   -----------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Southwest Development Company (Cedar Point) on August 30, 2004, when
the note matured and was not paid.  The default  amount  included  principal and
accrued interest of $1,320,000 and $3,122,592, respectively. As of May 11, 2007,
principal and accrued interest of $1,320,000 and $3,610,064,  respectively, were
due.  The  Partnership  has agreed in  principle to assign its interest in Cedar
Point  to  the  noteholders  in  satisfaction  of  the  nonrecourse   note.  The
noteholders  are  working to obtain  regulatory  consent to admit new  partners.
There is no  assurance  that a transfer of the  Partnership's  interest in Cedar
Point will occur.

     Due to the potential transfer of the Partnership's  interest in Cedar Point
to the noteholders, the Partnership's basis in the Local Partnership, along with
the net  unamortized  amount of acquisition  fees and property  purchase  costs,
which totaled $2,503,629 and $2,474,963 at March 31, 2007 and December 31, 2006,
respectively,  has been reclassified to investment in partnerships held for sale
or transfer in the accompanying consolidated balance sheets.

                                Crescent Gardens
                                ----------------

     The  Partnership  defaulted on its two purchase  money notes secured by its
interest in Crescent  Gardens  Associates  (Crescent  Gardens) on July 31, 1999,
when the notes matured and were not paid. The default amount included  aggregate
principal and accrued  interest of $868,000 and  $2,033,388,  respectively.  The
Partnership  successfully negotiated an agreement to extend the maturity date of
one of the purchase money notes (First Crescent Note) in the original  principal
amount of  $434,000,  effective  October 15,  1999.  Pursuant  to the  extension
agreement, the Partnership made payments to the noteholder to be applied against
accrued but unpaid  interest.  The agreement  extended the maturity date to July
31, 2004,  subject to semi-annual  interest  payments,  and reduced the interest
rate of the First Crescent Note. The  Partnership  did not make the  semi-annual
interest   payment  due  in  January  2004.  In  June  2005,   one-half  of  the
Partnership's  limited partner interest in the Local Partnership was transferred
to a designee  of its  current  noteholder  in  satisfaction  of that note.  The
transfer of one-half of the Partnership's  interest in Crescent Gardens resulted
in gain  from  extinguishment  of  debt  for  financial  statement  purposes  of
$1,348,879 in 2005,  and in total gain of $1,840,362 for federal tax purposes in
2005.  The  Partnership  is  currently  negotiating  the  sale of the  remaining
partnership interest to the owner of the other interest, subject to the security
agreement in favor of the noteholders. As of May 11, 2007, principal and accrued
interest  of  $434,000  and  $1,681,161,  respectively,  were due on the  Second
Crescent Note.  Crescent  Gardens  completed  mortgage  restructuring  under the

                                       -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

Mark-to-Market  program  during  2003,  and the  associated  loan  restructuring
requirements will likely inhibit the local managing general partner's ability to
sell this property.

     Due to the  impending  sale  of the  Partnership's  remaining  interest  in
Crescent Gardens,  the Partnership's basis in the Local Partnership,  along with
the net  unamortized  amount of acquisition  fees and property  purchase  costs,
which totaled $7,445 at March 31, 2007, has been  reclassified  to investment in
partnerships held for sale or transfer in the accompanying  consolidated balance
sheet at March 31, 2007.

                                 DeAngelis Manor
                                 ---------------

     On March 19,  2002,  DeAngelis  Manor was sold.  Proceeds  received  by the
Partnership  from the sale of the property  were used to pay off, at a discount,
the remaining  purchase money note related to DeAngelis Manor,  although,  as of
May  11,  2007,  the  note  has not  been  canceled  pending  final  receipt  of
accumulated cash from the property's  previous operations and payment thereof to
the purchase money noteholder.  The final  cancellation of the note will have no
financial impact to the Partnership.

                              Harborview Apartments
                              ---------------------

     The  Partnership  defaulted  on its  purchase  money  notes  secured by its
interest in Harborview Apartments Associates  (Harborview  Apartments) on August
1, 1999,  when the notes matured and were not paid. The default amount  included
aggregate   principal  and  accrued   interest  of  $3,000,000  and  $5,342,321,
respectively.  On October 31, 2000, the Partnership  and  noteholders  agreed to
extend the maturity date of the purchase  money notes to August 1, 2004, and the
Partnership  placed an assignment of its interest in Harborview  Apartments into
escrow. On September 28, 2006, the Partnership's interest was transferred to the
noteholders in satisfaction of the outstanding  principal and interest balances.
As of September  28, 2006,  the  principal  and accrued  interest  balances were
$3,000,000  and  $8,046,042,  respectively.  The  transfer of the  Partnership's
interest in Harborview  Apartments  resulted in gain from extinguishment of debt
for financial  statement  purposes of $10,169,272 in 2006, and in total gain for
federal tax purposes of $11,695,639.

                                Jewish Federation
                                -----------------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Jewish  Federation  Apartments  Associates  (Jewish  Federation)  on
October 31,  2004,  when the note matured and was not paid.  The default  amount
included   principal  and  accrued   interest  of  $1,350,000  and  $10,185,885,
respectively.  As of May 11, 2007,  principal and accrued interest of $1,350,000
and  $13,841,196,  respectively,  were due.  In January  2006,  the  Partnership
delivered an assignment of its interest in Jewish  Federation to the  noteholder
in escrow in satisfaction of the nonrecourse note, pending regulatory  authority
approval of the transfer.  However, there is no assurance that a transfer of the
Partnership's   interest  in  Jewish  Federation  will  occur.   Recently,   the
Partnership  was  advised  that  the  noteholders  desire  to  re-structure  the
transaction  as a  sale  of  the  property  to a  non-profit  affiliate  of  the
noteholders,  with the Partnership's share of the sale proceeds to be applied to
pay off the  purchase  money note at a  discount.  This sale is expected to take
place in the second quarter of 2007.

                                       -8-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

     Due  to  the  impending  sale  of  the  Partnership's  interest  in  Jewish
Federation to the noteholder,  the Partnership's basis in the Local Partnership,
along with the net unamortized  amount of acquisition fees and property purchase
costs,  which totaled  $31,907 at both March 31, 2007 and December 31, 2006, has
been reclassified to investment in partnerships held for sale or transfer in the
accompanying consolidated balance sheets.

                               Pilgrim Tower East
                               ------------------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Pilgrim Tower East  Associates  (Pilgrim  Tower East) on December 1,
1999,  when the note  matured  and was not paid.  The  default  amount  included
principal and accrued interest of $1,650,000 and $2,719,372, respectively. As of
May 11, 2007,  principal  and accrued  interest of  $1,450,000  and  $4,333,166,
respectively, were due. The Partnership and the noteholders signed a contract to
sell the  Partnership's  interest  in Pilgrim  Tower East to the  noteholder  in
exchange  for the  outstanding  principal  and accrued  interest on the purchase
money note and two $100,000  payments on the purchase  money note,  one of which
was paid in  February  2002,  and one of which  was paid in  January  2003.  The
noteholders failed to obtain required  regulatory consent to the sale within the
required time frame and the contract for the sale of the Partnership's  interest
expired in  November  2003.Under  the terms of the note and the  Assignment  and
Security  Agreement,  the  noteholders  have the right to enforce  its  security
interests  in the local  partnership  subject to  approval by CHFA and all other
government  agencies with  jurisdiction  over the property.  The Partnership has
been  informed by the  noteholders  that they are  working to obtain  regulatory
consent to the  transfer of the  Partnership's  interest.  There is no assurance
that a transfer of the Partnership's interest in Pilgrim Tower East will occur.

     Due to the  impending  transfer  of the  Partnership's  interest in Pilgrim
Tower East, the Partnership's basis in the Local Partnership, along with the net
unamortized  amount of  acquisition  fees and  property  purchase  costs,  which
totaled  $39,732  at both  March  31,  2007  and  December  31,  2006,  has been
reclassified  to  investment  in  partnerships  held for sale or transfer in the
accompanying consolidated balance sheets.

                               Pilgrim Tower North
                               -------------------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Pilgrim Tower North  Associates  (Pilgrim  Tower North) on April 30,
2000,  when the note  matured  and was not paid.  The  default  amount  included
principal and accrued interest of $2,165,000 and $18,922,763,  respectively.  On
December 15, 2005, principal and accrued interest of $2,065,000 and $27,580,538,
respectively,  were due. On December  15, 2005,  the  noteholder  purchased  the
property in exchange for the principal and accrued  interest  outstanding on the
purchase money note and  assumption of the mortgage  note, the flexible  subsidy
note and all related debt associated with the property. The sale of the property
related to the Partnership's investment in Pilgrim Towers North resulted in gain
from  extinguishment of debt for financial statement purposes of $26,066,904 and
in total gain of  $31,209,805  for federal tax purposes in 2005.  In April 2006,
the Partnership  received a cash distribution  which is recorded as other income
for  financial  statement  purposes of $32,964  and other  income of $32,964 for
federal tax purposes.

                                       -9-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

                                 Thornwood House
                                 ---------------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Thornwood  House  Associates  (Thornwood  House) on August 30, 2004,
when the note matured and was not paid.  The default amount  included  principal
and accrued interest of $1,775,000 and $4,025,568,  respectively.  As of May 11,
2007, principal and accrued interest of $1,775,000 and $4,674,774, respectively,
were due. The  Partnership has agreed in principle to assign its interest to the
noteholder in satisfaction of the nonrecourse note. The noteholder is working to
obtain  regulatory  consent to admit new partners.  There is no assurance that a
transfer of the Partnership's interest in Thornwood House will occur.

     Due to the potential  transfer of the  Partnership's  interest in Thornwood
House to the  noteholders,  the  Partnership's  basis in the Local  Partnership,
along with the net unamortized  amount of acquisition fees and property purchase
costs,  which  totaled  $562,058 and $581,667 at March 31, 2007 and December 31,
2006, respectively, has been reclassified to investment in partnerships held for
sale or transfer in the accompanying consolidated balance sheets.

                                Westport Village
                                ----------------

     The  Partnership  defaulted  on its  purchase  money  notes  secured by its
interest in Westport  Village on September 1, 1999,  when the notes  matured and
were not paid. The default  amount  included  principal and accrued  interest of
$840,000 and $1,615,644, respectively. As of May 11, 2007, principal and accrued
interest of $840,000 and $2,510,193, respectively, were due. The Partnership was
sued by the  noteholders but there has not been any legal action since 2000. The
Partnership  and the  noteholders  had agreed in principle that the  Partnership
would  deposit  assignments  of its  interests  in  Westport  Village in escrow,
together  with an  option  agreement  pursuant  to which the  noteholders  could
purchase the  interests for the  outstanding  debt if the property were not sold
and/or  the  notes  were not  repaid by  January  8,  2001.  At that  time,  the
Partnership's  basis in the Local  Partnership,  along with the net  unamortized
amount of acquisition fees and property  purchase costs,  which totaled $46,989,
was reclassified to investment in partnerships  held in escrow.  However,  there
has been no response from the noteholders concerning implementing the settlement
since 2000.  Therefore,  effective  December 31, 2003, the acquisition  fees and
property   purchase  costs  which  had  been   reclassified   to  investment  in
partnerships held in escrow were returned to their respective accounts. The loan
encumbering  the  property  associated  with  the  Partnership's  investment  in
Westport  Village  is in  default.  The  managing  general  partner of the Local
Partnership  was  unable  to  reach  an  agreement  with  the  Illinois  Housing
Development  Authority  to a  mortgage  restructuring.  As of  March  31,  2007,
Westport Village is in receivership and the Partnership has been informed that a
foreclosure  sale is being  considered by the lender.  The principal and accrued
interest on the Partnership's non-recourse purchase money notes relating to this
property totaled $840,000 and $2,497,525,  respectively,  at March 31, 2007. The
Partnership is not anticipating  any loss resulting from the anticipated  change
in ownership.

     As Westport  Village is in  receivership,  the  Partnership's  basis in the
Local Partnership, along with the net unamortized amount of acquisition fees and
property  purchased costs,  which totaled $0 at both March 31, 2007 and December
31, 2006, has been  reclassified to investment in partnerships  held for sale or
transfer in the accompanying consolidated balance sheets.


                                      -10-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

b.   Completed sales
     ---------------

                                 Chippewa County
                                 ---------------

     On  September  25,  2006,  the property  owned by Chippewa  County  Housing
Partnership  (Chippewa  County) was sold.  Gross cash  proceeds  received by the
Partnership in 2006 totaled $1,110,630. The sale resulted in gain on disposition
of investments in partnerships of $570,373 for financial  statement  purposes in
2006 and gain of $840,220 for federal  income tax purposes.  In accordance  with
the terms of the Partnership Agreement,  in September 2006, the Managing General
Partner was paid a disposition  fee of $47,000  related to the sale. The fee was
netted against the related gain on disposition of investment in  partnerships at
September 30, 2006. The Partnership  accrued $27,235,  which is included in gain
on disposition of investment in  partnerships  in 2006, for additional  proceeds
received in January 2007.

                                 Riverview Manor
                                 ---------------

     On September 25, 2006,  the property  owned by Riverview  Manor Co. Limited
Partnership  (Riverview  Manor) was sold.  Gross cash  proceeds  received by the
Partnership in 2006 totaled $1,272,499. The sale resulted in gain on disposition
of investments in partnerships of $56,013 for financial  statements  purposes in
2006 and gain of $389,586 for federal  income tax purposes.  In accordance  with
the terms of the Partnership Agreement,  in September 2006, the Managing General
Partner was paid a disposition  fee of $43,000  related to the sale. The fee was
netted against the related gain on disposition of investment in  partnerships at
September 30, 2006.

c.   Summarized financial information
     --------------------------------

     Combined  statements  of  operations  for the  thirteen  and sixteen  Local
Partnerships  in which the  Partnership  was  invested  as of March 31, 2007 and
2006,  respectively,  follow.  The combined  statements  have been compiled from
information  supplied  by the  management  agents  of  the  properties  and  are
unaudited.  The information for each of the periods is presented  separately for
those Local  Partnerships  which have investment basis (equity method),  and for
those Local Partnerships which have cumulative losses in excess of the amount of
the  Partnership's  investments  in  those  Local  Partnerships  (equity  method
suspended). Appended after the combined statements is information concerning the
Partnership's  share of income from partnerships  related to cash  distributions
recorded as income, and related to the Partnership's  share of income from Local
Partnerships.

                                      -11-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


3. INVESTMENTS IN PARTNERSHIPS - Continued

<TABLE>
<CAPTION>
                                         COMBINED STATEMENTS OF OPERATIONS
                                                    (Unaudited)

                                                                 For the three months ended
                                                                          March 31,
                                                  -------------------------------------------------------------
                                                             2007                             2006
                                                  -------------------------       -----------------------------
                                                    Equity                           Equity
                                                    Method        Suspended          Method         Suspended
                                                  ----------      ----------       ----------       ----------
         <S>                                      <C>             <C>              <C>              <C>
         Number of Local Partnerships                  4              9                7                9
                                                       =              =                =                =

         Revenue:
           Rental                                 $  854,695      $2,785,103       $1,920,158       $2,747,187
           Other                                      81,722         166,831           94,987          141,023
                                                  ----------      ----------       ----------       ----------

             Total revenue                           936,417       2,951,934        2,015,145        2,888,210
                                                  ----------      ----------       ----------       ----------

         Expenses:
           Operating                                 731,975       2,066,201        1,551,812        2,009,299
           Interest                                     (186)        515,042          112,448          555,805
           Depreciation and amortization             164,399         633,979          309,134          575,287
                                                  ----------      ----------       ----------       ----------

             Total expenses                          896,188       3,215,222        1,973,394        3,140,391
                                                  ----------      ----------       ----------       ----------

         Net income (loss)                        $   40,229      $ (263,288)      $   41,751       $ (252,181)
                                                  ==========      ==========       ==========       ==========

         Partnership's share of Local
           Partnership net income                     39,822              --           41,329               --
                                                  --------------------------       ---------------------------

         Share of income from
           partnerships                                   $39,822                              $41,329
                                                          =======                              =======

</TABLE>

     Cash  distributions  received from Local Partnerships which have investment
basis (equity method) are recorded as a reduction of investments in partnerships
and as  cash  receipts  on the  respective  consolidated  balance  sheets.  Cash
distributions  received from Local  Partnerships which have cumulative losses in
excess  of  the  amount  of  the   Partnership's   investments  in  those  Local
Partnerships  (equity  method  suspended)  are  recorded as share of income from
partnerships on the respective consolidated statements of operations and as cash
receipts on the respective consolidated balance sheets. As of March 31, 2007 and
2006,  the  Partnership's  share of  cumulative  losses  to date for nine of the
thirteen and nine of the sixteen Local Partnerships,  respectively, exceeded the
amount  of  the  Partnership's   investments  in  those  Local  Partnerships  by
$11,873,844  and  $10,813,567,  respectively.  As the Partnership has no further
obligation  to advance funds or provide  financing to these Local  Partnerships,
the excess  losses  have not been  reflected  in the  accompanying  consolidated
financial statements.

                                      -12-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


4.   RELATED PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to reimburse the Managing  General  Partner for its direct expenses
in connection with managing the  Partnership.  The Partnership  paid $62,599 and
$53,065 for the three month periods ended March 31, 2007 and 2006, respectively,
to the Managing General Partner as direct  reimbursement of expenses incurred on
behalf  of  the   Partnership.   Such  expenses  are  included  in  general  and
administrative   expenses  in  the  accompanying   consolidated   statements  of
operations.

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to pay the Managing General Partner an annual incentive  management
fee  (Management  Fee) after all other expenses of the Partnership are paid. The
Partnership  paid the Managing  General  Partner a Management Fee of $93,750 for
each of the three month periods ended March 31, 2007 and 2006.

     In accordance  with the terms of the  Partnership  Agreement,  the Managing
General  Partner  and/or its  affiliates  may receive a fee of not more than two
percent  of the  sale  price  of an  investment  in a Local  Partnership  or the
property  it  owns,  payable  under  certain  conditions  upon  the  sale  of an
investment in a Local  Partnership  or the property it owns.  The payment of the
fee is subject to certain  restrictions,  including the achievement of a certain
level of sale  proceeds  and making  certain  minimum  distributions  to limited
partners.  In September 2006, the Managing  General Partner was paid disposition
fees  totaling  $90,000,  related to the sales of Chippewa  County and Riverview
Manor, which were netted against the related gains on disposition of investments
in partnerships.


5.   CASH DISTRIBUTION

     On November 10, 2006, the Managing General Partner made cash  distributions
of  $2,273,447  ($31 per Unit) to holders of record as of November 1, 2006.  The
distributions  consisted of proceeds  received  from the sale of the  properties
owned by Chippewa County and Riverview Manor.

                                      # # #

                                      -13-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations


     Capital  Realty  Investors-IV   Limited   Partnership's  (the  Partnership)
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  section  is  based on the  consolidated  financial  statements,  and
contains   information  that  may  be  considered  forward  looking,   including
statements regarding the effect of governmental regulations.  Actual results may
differ  materially from those  described in the forward  looking  statements and
will be affected by a variety of factors  including  national and local economic
conditions,  the  general  level of  interest  rates,  governmental  regulations
affecting  the  Partnership  and  interpretations  of  those  regulations,   the
competitive  environment in which the Partnership operates, and the availability
of working capital.

                          Critical Accounting Policies
                          ----------------------------

     The  Partnership has disclosed its selection and application of significant
accounting policies in Note 1 of the notes to consolidated  financial statements
included in the Partnership's annual report on Form 10-KSB at December 31, 2006.
The   Partnership   accounts  for  its   investments  in   partnerships   (Local
Partnerships)  by the equity method because the Partnership is a limited partner
in the Local  Partnerships.  As such the  Partnership  has no  control  over the
selection and application of accounting  policies,  or the use of estimates,  by
the  Local  Partnerships.  Environmental  and  operational  trends,  events  and
uncertainties  that might affect the properties owned by the Local  Partnerships
would not necessarily have a significant impact on the Partnership's application
of the equity method of  accounting,  since the equity method has been suspended
for nine Local Partnerships which have cumulative losses in excess of the amount
of the Partnership's investments in those Local Partnerships.

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

     In September  2006, the Securities and Exchange  Commission  ("SEC") issued
Staff  Accounting  Bulletin  No.  108,  "Considering  the  Effects of Prior Year
Misstatements   when   Quantifying   Misstatements  in  Current  Year  Financial
Statements" ("SAB No. 108"). SAB No. 108 requires quantification of errors using
both  a  balance  sheet  approach  and  an  income  statement  approach  in  the
determination  of  materiality  in  relation to a  misstatement.  SAB No. 108 is
effective  the first  fiscal year ending after  November  15,  2006.  Management
believes SAB No. 108 will not have any impact on the Partnership.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under generally accepted  accounting
principles.  Although SFAS No. 157 applies  (amends) the  provisions of existing
FASB  and  AICPA  pronouncements,  it  does  not  require  any  new  fair  value
measurements,  nor  does it  establish  valuation  standards.  SFAS  No.  157 is
effective for fiscal years  beginning  after  November 15, 2007.  Management has
determined that SFAS No. 157 will have no material impact to the Partnership.

                                     General
                                     -------

     Some of the rental properties owned by the Local  Partnerships are financed
by state and federal housing agencies.  The Managing General Partner has sold or
refinanced, and will continue to sell or refinance,  certain properties pursuant
to  programs   developed  by  these   agencies.   These   programs  may  include
opportunities  to sell a property to a qualifying  purchaser  who would agree to
maintain  the  property as low to moderate  income  housing,  or to  refinance a
property,  or to obtain  supplemental  financing.  The Managing  General Partner
continues to monitor  certain state housing  agency  programs,  and/or  programs
provided by certain lenders,  to ascertain  whether the properties would qualify
within the  parameters  of a given  program and  whether  these  programs  would
provide  an  appropriate  economic  benefit  to  the  Limited  Partners  of  the
Partnership.

                                      -14-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued


     The U. S. Department of Housing and Urban  Development  (HUD) subsidies are
provided  principally under Section 8 and 236 of the National Housing Act. Under
Section 8, the  government  pays to the  applicable  apartment  partnership  the
difference between market rental rates (determined in accordance with government
procedures)  and the rate the  government  deems  residents  can  afford.  Under
Section  236,  the  government  provides  interest  subsidies  directly  to  the
applicable apartment  partnership through a reduction in the property's mortgage
interest rate. In turn, the partnership  provides a  corresponding  reduction in
resident  rental rates.  In compliance  with the  requirements of Section 8, and
Section  236,  residents  are  screened for  eligibility  under HUD  guidelines.
Subsidies are provided under  contracts  between the federal  government and the
apartment partnerships that are renewed annually.

     Subsidy contracts for the investment  apartment properties are scheduled to
expire between 2007 and 2019. The Managing  General  Partner intends to seek the
renewal of expiring subsidy contracts, when appropriate, for its properties. HUD
has in the past  approved  new subsidy  contracts  on an annual  basis.  The HUD
contract  renewal  process  currently  provides  owners six options for renewing
their  section  8  contract  depending  upon  whether  the  owner  can  meet the
eligibility  criteria.   Historically,  the  Local  Partnerships  in  which  the
Partnership  is  invested  have  met  the  criteria  necessary  to  renew  their
respective Section 8 contracts.

     Crescent Gardens Associates (Crescent Gardens) has a Section 8 HAP contract
which  expires  July 8,  2007.  The  Section 8 HAP  contract  covers  all of the
apartment  units  in  Crescent  Gardens.   It  is  anticipated  that  the  Local
Partnership  will extend its Section 8 HAP contract for a one-year period at its
expiration.

     As of March 31, 2007, the carrying amount of the  Partnership's  investment
in the Local  Partnership  with Section 8 HAP contracts  expiring in the next 12
months and which was not sold on or before May 11, 2007, was $0.

     The Managing  General  Partner  continues to seek  strategies  to deal with
affordable housing policy. While the Managing General Partner cannot predict the
outcome for any particular  property at this time, the Managing  General Partner
will continue to work with the Local  Partnerships  to develop  strategies  that
maximize the benefits to investors.

                          Financial Condition/Liquidity
                          -----------------------------

     The Partnership's liquidity, with unrestricted cash resources of $7,924,568
as of March 31, 2007,  along with  anticipated  future cash  distributions  from
Local  Partnerships,  is  expected  to be  adequate  to  meet  its  current  and
anticipated  operating  cash needs.  As of May 11, 2007,  there were no material
commitments for capital  expenditures.  The Managing  General Partner  currently
intends to retain all of the Partnership's  remaining undistributed cash pending
resolution of the  Partnership's  outstanding  purchase  money notes and related
accrued interest, and for operating cash reserves.

     The  Partnership's  obligations  with respect to its  investments  in Local
Partnerships,  in the  form  of  nonrecourse  purchase  money  notes  having  an
aggregate  principal  balance of $11,101,081 plus aggregate  accrued interest of
$55,460,184  as of March 31, 2007, are payable in full upon the earliest of: (i)
sale or refinancing of the respective Local Partnership's rental property;  (ii)
payment in full of the respective Local  Partnership's  permanent loan; or (iii)
maturity.

                                      -15-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued


     The  collateral  that  secured  the  purchase  money  note  related  to the
following property was transferred to the noteholders during 2006.

         Property               Principal        Date           Disposition
         ----------            -----------   --------------     -----------

         Harborview            $3,000,000    September 2006     Transferred

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of May 11, 2007.

<TABLE>
<CAPTION>
                                                               Accrued Interest
                                                                    As of
         Property                              Principal        March 31, 2007       Maturity
         --------                             -----------      ----------------    -----------
         <C>                                  <C>              <C>                 <C>
         Crescent Gardens - Second Note       $  434,000          $ 1,671,858        07/31/99
         Westport Village (1)                    840,000            2,497,525        09/01/99
         Pilgrim Tower East                    1,450,000 (2)        4,309,283        11/30/03
         Cedar Point                           1,320,000            3,590,352        08/30/04
         Thornwood House                       1,775,000            4,648,522        08/30/04
         Jewish Federation                     1,350,000           13,658,483        10/31/04

</TABLE>

     (1)  In receivership.
     (2)  Remaining principal, after partial payment.

     The  purchase  money note secured by the  Partnership's  interest in Asbury
Tower was due to mature on August 31, 2004.  However,  the noteholder has agreed
to extend the  maturity  date on a month to month  basis  until such time as the
noteholder provides a 30 day advance notice to the Partnership.  As of March 31,
2007,  principal  and  accrued  interest  due on the  purchase  money  note were
$3,432,081 and $22,362,811,  respectively. The Local Managing General Partner is
currently  negotiating  the sale of the property  related to Asbury Towers to an
affiliate. Proceeds from the sale will be used to payoff the purchase money note
at a discount. There is no assurance that the sale of the property will occur.

     Due to the  impending  sale of the  property  owned by  Asbury  Tower,  the
Partnership's  basis in the Local  Partnership,  along with the net  unamortized
amount of acquisition fees and property purchase costs, which totaled $53,727 at
both March 31, 2007 and December 31, 2006, have been  reclassified to investment
in  partnerships  held for sale or  transfer  in the  accompanying  consolidated
balance sheets.

     The remaining  purchase  money note related to  Northridge  Park matures in
2025.  As of March 31,  2007,  principal  and  accrued  interest  balances  were
$500,000 and $2,721,350, respectively.

     As  of  March  31,  2007,   Westport  Village  is  in   receivership.   The
Partnership's  non-recourse  purchase money notes and accrued  interest  totaled
$840,000 and $2,497,525,  respectively at March 31, 2007. The Partnership is not
anticipating any loss resulting from the anticipated change in ownership.

     See the notes to  consolidated  financial  statements  contained in Part I,
Item 1, hereof, for additional information concerning purchase money notes.

     The purchase money notes,  which are  nonrecourse to the  Partnership,  are
generally  secured  by  the  Partnership's  interest  in  the  respective  Local
Partnerships.  There is no assurance  that the underlying  properties  will have
sufficient appreciation and equity to enable the Partnership to pay the purchase
money notes'  principal and accrued  interest when due. If a purchase money note
is not paid in accordance with its terms,  the  Partnership  will either have to
renegotiate  the terms of repayment or risk losing its  partnership  interest in
the  respective  Local  Partnership.  In the event  that a  purchase  money note
remains unpaid upon maturity,  the noteholder may have the right to foreclose on
the Partnership's interest in the related Local Partnership.

                                      -16-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued


     The  Partnership's  inability  to pay  certain of the  purchase  money note
principal and accrued interest balances when due, and the resulting  uncertainty
regarding the Partnership's  continued  ownership  interest in the related Local
Partnerships,  does not adversely impact the Partnership's  financial  condition
because the  purchase  money  notes are  nonrecourse  and secured  solely by the
Partnership's interest in the related Local Partnerships.  Therefore, should the
investment in any of the Local  Partnerships  with matured or maturing  purchase
money notes not produce  sufficient  value to satisfy the related purchase money
notes, the  Partnership's  exposure to loss is limited because the amount of the
nonrecourse indebtedness of each of the matured or maturing purchase money notes
exceeds the  carrying  amount of the  investment  in each of the  related  Local
Partnerships.  Thus, even a complete loss of the Partnership's interest in these
Local  Partnerships  would not have a material  adverse  impact on the financial
condition of the Partnership.

     The Managing General Partner continues to investigate possible alternatives
to reduce the Partnership's debt obligations.  These alternatives include, among
others, retaining the cash available for distribution to meet the purchase money
note  requirements,  paying off certain  purchase  money  notes at a  discounted
price, extending the due dates of certain purchase money notes,  refinancing the
respective  properties'  underlying  debt, or selling the underlying real estate
and using the  Partnership's  share of the  proceeds to pay or buy down  certain
purchase money note  obligations.  Although the Managing General Partner has had
some success applying these strategies in the past, the Managing General Partner
cannot assure that these  strategies  will be  successful in the future.  If the
Managing  General  Partner is unable to negotiate  an  extension  or  discounted
payoff,  in the event that the purchase money notes remain unpaid upon maturity,
the noteholders may have the right to foreclose on the Partnership's interest in
the related Local Partnerships.  In the event of a foreclosure or other transfer
of the Partnership's  interest, the excess of the nonrecourse  indebtedness over
the  carrying  amount  of the  Partnership's  investment  in the  related  Local
Partnership  will result in a taxable gain. This gain will be taxable to Limited
Partners at a federal  tax rate of up to 35.0%.  Additionally,  the  Partnership
would lose its investment in the Local Partnership and,  likewise,  its share of
any future cash  distributed by the Local  Partnership  from rental  operations,
mortgage  debt  refinancings,  or the sale of the real  estate.  Of the thirteen
Local  Partnerships  in which the  Partnership is invested as of March 31, 2007,
the six Local  Partnerships  with  associated  purchase  money  notes which have
matured,  or which mature  through  March 31, 2008,  and which remain  unpaid or
unextended  as of May 11, 2007,  represented  the following  percentages  of the
Partnership's total distributions  received from Local Partnerships and share of
income from Local Partnerships for the immediately preceding two calendar years.

                              Percentage of Total       Partnership's Share of
                             Distributions Received          Loss from
      For the Year Ended     from Local Partnerships      Local Partnerships
      ------------------     -----------------------    ----------------------

      December 31, 2005                0.0%                   $ (8,741)
      December 31, 2006                1.6%                   $547,048


     The  Managing  General  Partner  continues  to  address  the  maturity  and
impending  maturity of the Partnership's  debt obligations and to seek solutions
that will provide the most favorable outcome to the Limited  Partners.  However,
there can be no assurance that these strategies will be successful.


                                      -17-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued


     The Partnership closely monitors its cash flow and liquidity position in an
effort to ensure that sufficient  cash is available for operating  requirements.
For the three month period ended March 31, 2007,  existing cash  resources  were
adequate  to support  operating  cash  requirements.  Cash and cash  equivalents
decreased  $154,832  during the three month period ended March 31, 2007,  due to
operating expenses paid in cash

     On November 10, 2006, the Managing General Partner made cash  distributions
of  $2,273,447  ($31 per Unit) to holders of record as of November 1, 2006.  The
distributions  consisted of proceeds  received  from the sale of the  properties
owned by Chippewa County and Riverview Manor.

                              Results of Operations
                              ---------------------

     The Partnership's net loss for the three month period ended March 31, 2007,
decreased from the corresponding period in 2006, primarily due to an increase in
interest  revenue and decreases in interest expense and amortization of deferred
cost,  partially  offset by a decrease in share of income from  partnerships and
increases in general and administrative expenses and professional fees. Interest
revenue increased due to higher rates in 2007. Interest expense decreased due to
a lower  purchase  money  note  balance.  General  and  administrative  expenses
increased  primarily due to higher reimbursed  payroll costs.  Professional fees
increased due to higher audit costs.

     For financial reporting purposes, the Partnership,  as a limited partner in
the Local  Partnerships,  does not record losses from the Local  Partnerships in
excess of its  investment  to the  extent  that the  Partnership  has no further
obligation to advance funds or provide financing to the Local Partnerships. As a
result, the Partnership's  share of income from partnerships for the three month
periods  ended March 31, 2007 and 2006 did not  include  losses of $298,900  and
$282,440, respectively.

     No other  significant  changes in the  Partnership's  operations have taken
place during the three month period ended March 31, 2007.


Item 3. Controls and Procedures
        -----------------------

     In  May  2007,  representatives  of the  Managing  General  Partner  of the
Partnership  carried out an  evaluation of the  effectiveness  of the design and
operation of the Partnership's  disclosure controls and procedures,  pursuant to
Exchange Act Rules  13a-15 and 15d-15.  The  Managing  General  Partner does not
expect that the  Partnership's  disclosure  controls and procedures will prevent
all error and all fraud.  A control  system,  no matter how well  conceived  and
operated,  can provide only  reasonable  assurance  that the  objectives  of the
control system are met. Further, the design of a control system must reflect the
fact that there are resource  constraints,  and the benefits of controls must be
considered relative to their costs.  Because of the inherent  limitations in all
control systems,  no evaluation of controls can provide absolute  assurance that
all control issues have been detected.  These inherent  limitations  include the
realities that judgments in  decision-making  can be faulty, and that breakdowns
can occur  because  of simple  error or  mistake.  The  design of any  system of
controls also is based in part upon certain  assumptions about the likelihood of
future  events,  and there can be no  assurance  that any design will succeed in
achieving its stated goals under all  potential  future  conditions.  Over time,
controls may become inadequate  because of changes in conditions,  or the degree
of compliance  with the policies or procedures may  deteriorate.  Because of the
inherent  limitations in a cost-effective  control system,  misstatements due to
error or fraud may occur and not be detected.  Based on the May 2007 evaluation,
and subject to the  foregoing,  the  Principal  Executive  Officer and Principal
Financial  Officer  concluded  that the  Partnership's  disclosure  controls and
procedures  are effective as of the end of the period  covered by this report to
alert  them in a timely  manner  to any  material  information  relating  to the


                                      -18-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 3. Controls and Procedures - Continued


Partnership that must be included in the Partnership's periodic SEC filings, and
particularly  during  the  period in which  this  report is being  prepared.  In
addition,  there have been no significant changes in the Partnership's  internal
control over financial  reporting that occurred  during the  Partnership's  most
recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect, the Partnership's internal control over financial reporting.


Part II. OTHER INFORMATION
Item 3. Defaults upon Senior Securities

     See Note 2.a. of the notes to consolidated  financial  statements contained
in Part I, Item 1, hereof, for information concerning the Partnership's defaults
on certain purchase money notes.


Item 5. Other Information
        -----------------

     There has not been any information  required to be disclosed in a report on
Form 8-K during the quarter ended March 31, 2007,  but not reported,  whether or
not otherwise required by this Form 10-QSB at March 31, 2007.

     There  is no  established  market  for the  purchase  and  sale of units of
additional limited partner interest (Units) in the Partnership, although various
informal  secondary market services exist. Due to the limited markets,  however,
investors may be unable to sell or otherwise dispose of their Units.

     A number of  investors  have sold their Units to other  investors.  If more
than two percent of the total  outstanding  Units are transferred due to sale in
any one calendar year (not counting certain exempt  transfers),  the Partnership
could be taxed as a "publicly traded  partnership,"  with potentially severe tax
implications   for  the  Partnership  and  its  investors.   Specifically,   the
Partnership  could be taxed as a  corporation  and, if so, the income and losses
from the  Partnership  would no longer be  considered a passive  activity.  From
January 1, 2007 through April 29, 2007, the  Partnership  received sale transfer
requests for approximately 1.9% of the outstanding Units. Accordingly, to remain
within the two percent  safe  harbor,  effective  April 30,  2007,  the Managing
General  Partner halted  recognition of any transfers that would exceed the safe
harbor limit through  December 31, 2007. As a result,  transfers of Units due to
sale  transactions  will not be recognized by the Partnership  between April 30,
2007 and December 31, 2007. The halt will be lifted effective January 1, 2008.

     On November 10, 2006, the Managing General Partner made cash  distributions
of  $2,273,447  ($31 per Unit) to holders of record as of November 1, 2006.  The
distributions  consisted of proceeds  received  from the sale of the  properties
owned by Chippewa County and Riverview Manor.


Item 6. Exhibits

Exhibit No.    Description
-----------    -----------

   31.1        Certification of Principal Executive Officer, pursuant to
               18 U.S.C. Section 1350, as adopted pursuant to Section 302
               of the Sarbanes-Oxley Act of 2002.

   31.2        Certification of Principal Financial Officer, pursuant to
               18 U.S.C. Section 1350, as adopted pursuant to Section 302
               of the Sarbanes-Oxley Act of 2002.

   32          Certification of Principal Executive Officer and
               Principal Financial Officer, pursuant to 18 U.S.C.
               Section 1350, as adopted pursuant to Section 906
               of the Sarbanes-Oxley Act of 2002.

All other Items are not applicable.

                                      -19-

<PAGE>
                                    SIGNATURE

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                  CAPITAL REALTY INVESTORS-IV LIMITED
                                    PARTNERSHIP
                                  ----------------------------------------------
                                  (Registrant)

                                   by:  C.R.I., Inc.
                                        ----------------------------------------
                                        Managing General Partner




May 11, 2007                            by:  /s/ H. William Willoughby
------------                                 -----------------------------------
DATE                                         H. William Willoughby,
                                             Director, President, Secretary,
                                               Principal Financial Officer and
                                               Principal Accounting Officer


                                      -20-

<PAGE>