SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 1997

                                       OR

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


                         Commission file number: 0-14207


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


                    California                        33-0061355
         (State or other jurisdiction of           (I.R.S. Employer
         incorporation or organization)          Identification  No.)

      400 South El Camino Real, Suite 1100
              San Mateo, California                      94402
              (Address of principal                   (Zip Code)
               executive offices)

                                 (415) 343-9300
              (Registrant's telephone number, including area code)

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 (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 ___


          Total number of units outstanding as of June 30, 1997: 79,846




                                  Page 1 of 16
<PAGE>



PART 1.  FINANCIAL INFORMATION


Item 1.  Financial Statements

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                         June 30,   December 31,
                                                           1997         1996
                                                        ---------    ---------
Assets
Investments in real estate:
   Rental property, net of accumulated depreciation
       of $13,824 and $13,077 at June 30, 1997
       and December 31, 1996, respectively              $  43,765    $  38,094
    Construction in progress                                   --        2,184
    Land held for development                               4,915        4,911
    Land held for sale                                      4,495        4,869
                                                        ---------    ---------

       Total real estate investments                       53,175       50,058

Cash and cash equivalents                                     663           97
Restricted cash                                               371          102
Accounts and interest receivable                               37          188
Note receivable                                                --          405
Deferred financing costs and other fees, net of
   accumulated amortization of $896 and $775
   at June 30, 1997 and December 31, 1996,
   respectively                                             1,496        1,223
Prepaid expenses and other assets                             544          622
                                                        ---------    ---------

       Total assets                                     $  56,286    $  52,695
                                                        =========    =========









                                   continued -


                                  Page 2 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                     Consolidated Balance Sheets - continued
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                         June 30,   December 31,
                                                          1997         1996
                                                        ---------    ---------
Liabilities and Partners' Equity (Deficit)
Liabilities:
    Notes payable                                       $  22,135    $  17,256
    Accounts payable and accrued expenses                     604          713
    Interest payable                                           85           67
                                                        ---------    ---------

       Total liabilities                                   22,824       18,036
                                                        ---------    ---------

Commitments and contingent liabilities (see Note 4)

Partners' equity (deficit):
    General partners                                         (891)        (891)
    Limited partners, 79,846 limited partnership units
      outstanding at June 30, 1997 and December 31, 1996   34,353       35,550
                                                        ---------    ---------

       Total partners' equity                              33,462       34,659
                                                        ---------    ---------

       Total liabilities and partners' equity           $  56,286    $  52,695
                                                        =========    =========

















                 See accompanying notes to financial statements.




                                  Page 3 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)


                                      Three months ended      Six months ended
                                            June 30,             June 30,
                                       -----------------     -----------------
                                         1997      1996       1997       1996
                                       -------   -------     -------   -------
Revenues:
  Rental income                        $ 1,748   $ 1,049     $ 3,287   $ 2,169
  Interest and other income                  3        26          11        54
                                       -------   -------     -------   -------

      Total revenues                     1,751     1,075       3,298     2,223
                                       -------   -------     -------   -------

Expenses:
  Operating                                758       527       1,470     1,052
  Interest expense                         468       356         861       617
Depreciation and amortization              429       386         820       689
  Provision for impairment of land
    held for sale                          378        --         378        --
  Expenses associated with
    undeveloped land                       148       219         325       402
  General and administrative expenses      325       330         641       655
                                       -------   -------     -------   -------

      Total expenses                     2,506     1,818       4,495     3,415
                                       -------   -------     -------   -------

Net loss                               $  (755)  $  (743)    $(1,197)  $(1,192)
                                       =======   =======     =======   =======

Net loss per limited partnership unit  $ (9.45)  $ (9.31)    $(14.99)  $(14.93)
                                       =======   =======     =======   =======

Weighted average number of limited
  partnership units outstanding during
  each period used to compute net loss
  per limited partnership unit          79,846    79,846      79,846    79,846
                                       =======   =======     =======   =======








                 See accompanying notes to financial statements.




                                  Page 4 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statements of Partners' Equity (Deficit)
                 For the six months ended June 30, 1997 and 1996
                                 (in thousands)
                                   (Unaudited)




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


Balance at December 31, 1996       $  (891)      $  35,550       $  34,659

Net loss                                --          (1,197)         (1,197)
                                   -------       ---------       ---------

Balance at June 30, 1997           $  (891)      $  34,353       $  33,462
                                   =======       =========       =========




Balance at December 31, 1995       $  (891)      $  37,060       $  36,169

Net loss                                --          (1,192)         (1,192)
                                   -------       ---------       ---------

Balance at June 30, 1996           $  (891)      $  35,868       $  34,977
                                   =======       =========       =========

















                 See accompanying notes to financial statements.




                                  Page 5 of 16
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)

                                                              Six months ended
                                                                  June 30,
                                                              1997       1996
                                                            --------   --------

Cash flows from operating activities:
  Net loss                                                  $ (1,197)  $ (1,192)
  Adjustments to reconcile net loss to net cash
   provided by (used for) operating activities:
     Depreciation and amortization                               820        689
     Amortization of loan fees, included in interest expense      48         39
     Provision for impairment of land held for sale              378         --
     Changes in certain assets and liabilities:
        Accounts and interest receivable                         151         (1)
        Prepaid expenses and other assets                         78       (284)
        Accounts payable and accrued expenses                   (109)     1,274
        Interest payable                                          18         47
        Deferred financing costs and other fees                 (272)       (38)
                                                            --------   --------

  Net cash provided by (used for) operating activities           (85)       534
                                                            --------   --------

Cash flows from investing activities:
  Net proceeds from sale of real estate                           --        248
  Additions to real estate and property development costs     (3,837)    (5,556)
                                                            --------   --------

  Net cash used for investing activities                      (3,837)    (5,308)
                                                            --------   --------

Cash flows from financing activities:
  Net loan proceeds                                            6,500      3,845
  Decrease (increase) in restricted cash, net                   (269)       826
  Payment of loan fees                                          (122)      (199)
  Notes payable principal payments                            (1,621)       (77)
                                                            --------   --------

  Net cash provided by financing activities                    4,488      4,395
                                                            --------   --------

Net increase (decrease) in cash and cash equivalents             566       (379)

Cash and cash equivalents at beginning of period                  97      1,296
                                                            --------   --------

Cash and cash equivalents at end of period                  $    663   $    917
                                                            ========   ========
                                  - continued -




                                  Page 6 of 16
<PAGE>




                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                Consolidated Statements of Cash Flows - continued
                                 (in thousands)
                                   (Unaudited)

                                                             Six months ended
                                                                June  30,
                                                              1997       1996
                                                            --------   --------



Supplemental disclosure of cash flow information:
     Cash paid for interest                                 $    795   $    528
                                                            ========   ========

Supplemental disclosure of additions to real estate
  and property development costs:
     Purchase price of real estate                          $(1,750)   $     --
     Reduction of note receivable                               405          --
     Additions to real estate and property development costs (2,492)     (5,556)
                                                            -------    --------

Net additions to real estate and property development costs $(3,837)   $ (5,556)
                                                            =======    ========

Supplemental disclosure of non-cash refinancing activity:
   New financing                                            $ 7,700    $  9,425
   Original financing paid off in escrow                     (1,200)     (5,580)
                                                            -------    --------

Net loan proceeds                                           $ 6,500    $  3,845
                                                            =======    ========

















                 See accompanying notes to financial statements.




                                  Page 7 of 16
<PAGE>




                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1997
                                   (Unaudited)



Note 1.  THE PARTNERSHIP AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors")  and  Glenborough   Corporation   (successor  by  merger  with
Glenborough Inland Realty  Corporation),  the accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  of  only  normal  accruals)
necessary to present  fairly the financial  position of Rancon Realty Fund IV, A
California  Limited  Partnership  (the  "Partnership")  as of June 30,  1997 and
December 31, 1996,  and the related  statements of operations  for the three and
six months  ended June 30, 1997 and 1996,  and the changes in  partners'  equity
(deficit) and cash flows for the six months ended June 30, 1997 and 1996.

In December,  1994, RFC entered into an agreement with  Glenborough  Corporation
("Glenborough")  whereby  RFC sold to  Glenborough  the  contract to perform the
rights and responsibilities under RFC's agreement with the Partnership and other
related  Partnerships  (collectively,  the "Rancon  Partnerships") to perform or
contract  on  the  Partnership's   behalf,  for  financial,   accounting,   data
processing,   marketing,   legal,  investor  relations,  asset  and  development
management and consulting services for the Partnership for a period of ten years
or until the liquidation of the Partnership,  whichever comes first. Pursuant to
the contract,  the Partnership will pay Glenborough for its services as follows:
(i) a specified asset  administration fee, which is fixed for five years subject
to reduction in the year  following the sale of assets,  currently  $989,000 per
year;  (ii) sales fees of 2% for improved  properties  and 4% for land;  (iii) a
refinancing fee of 1% and (iv) a management fee of 5% of gross rental  receipts.
As part of this  agreement,  Glenborough  will  perform  certain  tasks  for the
General  Partner of the Rancon  Partnerships  and RFC agreed to  cooperate  with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners  to   substitute   itself  as  the  General   Partner  for  the  Rancon
Partnerships.  This agreement became effective  January 1, 1995.  Glenborough is
not an affiliate of RFC or the Partnership.

Consolidation  - In  order  to  satisfy  certain  lender  requirements  for  the
Partnership's  1996 loan secured by Service  Retail Center,  Promotional  Retail
Center,  and Carnegie  Business Center I, Rancon Realty Fund IV Tri-City Limited
Partnership,  a Delaware limited  partnership  ("RRF IV Tri-City") was formed in
April 1996. The three  properties  securing the loan were  contributed to RRF IV
Tri-City  by the  Partnership.  The  limited  partner of RRF IV  Tri-City is the
Partnership  and  the  general  partner  is  Rancon  Realty  Fund  IV,  Inc.,  a
corporation  wholly owned by the Partnership.  Since the Partnership  indirectly
owns 100% of RRF IV Tri-City,  the financial  statements of RRF IV Tri-City have
been consolidated with those of the Partnership.  All intercompany  transactions
and account balances have been eliminated in consolidation.




                                  Page 8 of 16
<PAGE>

                           RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1997
                                   (Unaudited)


Reclassification  - Certain 1996 balances have been  reclassified  to conform to
the current period presentation.


Note 2.  REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
Notes  to  Financial  Statements  included  in the  December  31,  1996  audited
financial statements.

Note 3.  INVESTMENTS IN REAL ESTATE

On February 28,  1997,  the  Partnership  purchased  the  property  known as TGI
Friday's  for  $1,750,000.  The  Partnership  paid  $1,345,000  in cash  and the
existing $405,000 note receivable secured by a deed of trust on the TGI Friday's
property was retired as part of this transaction.

In May 1997,  construction  of the Circuit City site in the  Tri-City  Corporate
Center  was  completed  for a total  cost of  approximately  $3,840,000  and was
classified as rental property.

In the second  quarter of 1997,  due to the sales  price of pending  land sales,
management concluded that the carrying value of the Partnership's  investment in
the land held for sale in Temecula,  California  was in excess of its fair value
and a  provision  for  impairment  of the land  held for sale in the  amount  of
$378,000 was recorded.

Note 4.  RESTRICTED CASH

On March 12, 1997,  pursuant to the Inland  Regional  Center  ("IRC")  lease,  a
$269,000  certificate  of deposit ("DC") was opened.  The $269,000  represents a
security  deposit which the Partnership will retain in the event of a default by
IRC.  Provisions  in the  lease  allow for the  security  deposit  plus  accrued
interest to be  converted  to prepaid  rent after the 60th month of the lease if
the tenant is not in default of the provisions of the lease.

Note 5.  COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsor in the amount of $643,000 at June 30, 1997 for sales that
transpired in previous  years.  The  subordinated  real estate  commissions  are
payable only after the Limited  Partners  have received  distributions  equal to
their original invested capital plus a cumulative  non-compounded  return of six
percent per annum on their adjusted invested capital.




                                  Page 9 of 16
<PAGE>

                           RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1997
                                   (Unaudited)

Note 6.  NOTES PAYABLE

On January 31, 1997, the Partnership obtained an unsecured promissory note for a
$1,500,000 revolving line of credit from Glenborough at a rate of eleven percent
(11%) per annum to fund capital  expenditures  and other  partnership  costs. By
April 1997, the Partnership had drawn the total $1,500,000 available on the line
of credit and the loan was paid off in May 1997,  from new  permanent  financing
proceeds (see below).

On February 28, 1997, the Partnership obtained a $1,200,000 unsecured loan at an
interest  rate of one percent (1%) per annum in excess of the bank "Prime Rate."
The loan was used to finance the acquisition of the TGI Friday's property.  This
loan was also paid off in May 1997,  from the new permanent  financing  proceeds
(see below).

On May 8, 1997, the Partnership  obtained new permanent  financing of $5,000,000
from Wells Fargo Bank,  secured by real estate  referred to as Circuit  City and
TGI  Friday's.  The  Partnership  used the  proceeds  to pay off the  $1,500,000
Glenborough  line of credit and $1,221,000 to pay off the unsecured  Wells Fargo
Bank loan (including accrued interest).  In addition,  the Partnership  incurred
approximately  $193,000 in loan fees and closing  costs and  $1,956,000  for the
Circuit City tenant improvement  allowance,  of which $35,000 remains to be paid
as of June 30, 1997,  pending final completion of all tenant  improvements.  The
remaining net proceeds of approximately $130,000 were added to the Partnership's
cash reserves.

The new loan  bears  interest  at one  percent  (1%) per  annum in excess of the
lender's "Prime Rate," requires  monthly  payments of interest only, and matures
on May 31, 1999 with an option for a one-year extension.

Note 7.  SUBSEQUENT EVENT

On July 1,  1997  and  August  7,  1997,  the  Partnership  sold  four of the 11
remaining available lots of Rancon Towne Village for an aggregate sales price of
$936,000.






                                 Page 10 of 16
<PAGE>






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

LIQUIDITY  AND CAPITAL RESOURCES

At June 30, 1997,  the  Partnership  had cash of $932,000.  The remainder of the
Partnership's  assets  consist  primarily  of its  investments  in real  estate,
totaling approximately $53,553,000.

The  Partnership's  primary  source of funds  consist of cash provided by rental
activities,  permanent  financing,  construction  financing,  property sales and
interest  income on certificates of deposit and other deposits of funds invested
temporarily, pending their use in the development of properties.

The  Partnership's  improved cash position at June 30, 1997 compared to December
31,  1996 is largely due to the  placement  of the Inland  Regional  Center into
service in June 1996, the  acquisition of TGI Friday's in February 1997, and the
net proceeds from various financing obtained in 1997.

On May 8, 1997, the Partnership  obtained new permanent  financing of $5,000,000
from Wells Fargo Bank,  secured by real estate  referred to as Circuit  City and
TGI Friday's.  The Partnership used the proceeds to pay off a $1,500,000 line of
credit and  $1,221,000  to pay off the  unsecured  Wells  Fargo  Bank  loan.  In
addition,  the  Partnership  incurred  approximately  $193,000  in loan fees and
closing costs and $1,956,000 for the Circuit City tenant improvement  allowance.
The  remaining  net  proceeds  of  approximately  $130,000  were  added  to  the
Partnership's cash reserves.

A majority of the  Partnership's  assets are located within the Inland Empire, a
submarket  of  Southern  California,  and have  been  directly  affected  by the
economic weakness of the region. Management believes, however, that while prices
have not increased  significantly,  the Southern  California  real estate market
appears to be  improving.  Management  continues  to  evaluate  the real  estate
markets in which the Partnership's  assets are located in an effort to determine
the optimal time to dispose of them and realize their maximum value.

Tri-City

The  Partnership  currently  owns  the  following  properties  in  the  Tri-City
Corporate  Center  area  within  the Inland  Empire  submarket  of the  Southern
California region:

          Property                           Type                   Square Feet
 ---------------------------   ----------------------------------   -----------
 One Vanderbilt                Four story office building              73,809
 Two Vanderbilt                Four story office building              69,094
 Carnegie Business Center I    Two light industrial buildings          62,605
 Service Retail Center         Two retail buildings                    20,780
 Promotional Retail Center     Four strip center retail buildings     104,865
 Inland Regional Center        Two story office building               81,079
 TGI Friday's                  Restaurant                               9,386
 Circuit City                  Build-to-suit retail building           39,123




                                 Page 11 of 16
<PAGE>



The  Partnership  also owns  approximately  26 acres of  unimproved  land in the
Tri-City area.

Additionally,  the  Partnership  owns the  Shadowridge  Woodbend  Apartments  (a
240-unit  apartment  complex)  in  Vista,  California  plus  unimproved  land in
Riverside County, California as described below.

Lake Elsinore

Lake  Elsinore is 24.8 acres of  undeveloped  land,  commercially  zoned in Lake
Elsinore,  Riverside County, California.  Offsite improvements remain on hold at
the Lake Elsinore property and there is no development  activity planned for the
near future.

Perris

Perris is 17.14 acres of unimproved  land near Perris Lake in Perris,  Riverside
County,  California.  There has been no  development  of the Perris  property to
date.  The property is being  marketed  for sale to retail users and  interested
developers.

Temecula

The  subdivision of the 12.4 gross acre property in Temecula,  California,  also
known as Rancon Towne Village,  into 12 lots was approved  January 2, 1996. From
February  1996 through  August 1997,  the  Partnership  sold five lots  totaling
approximately  3.7  acres  for a  cumulative  sales  price  of  $1,211,000.  The
Partnership has executed a sales contract on one lot consisting of approximately
1.06  acres for a sales  price of  $270,000.  The sale is  expected  to close by
January 1998. Negotiations are currently underway for the sale of one additional
 .76 acre lot while the remaining lots continue to be marketed for sale.

The Partnership has a $100,000  certificate of deposit ("CD") held as collateral
for subdivision  improvements and monument bonds related to the land for sale in
Temecula,  California.  It is anticipated  that this CD will be released  during
1997.

General Matters

The  $5,671,000  increase in rental  property at June 30, 1997 from December 31,
1996 is  primarily  due to the  acquisition  of the TGI Friday's  property,  the
reclassification  of  Circuit  City  from  construction  in  progress  to rental
property,  and the tenant  improvement  allowance paid for the completion of the
Circuit City property.

The  General  Partners  continue  to assess the real  estate  market in Southern
California  in an effort to  determine  an  appropriate  time to  liquidate  the
Partnership  and realize the maximum value for its assets.  Cash  generated from
property  sales  may be  utilized  in the  development  of other  properties  or
distributed to the partners.




                                 Page 12 of 16
<PAGE>



RESULTS OF OPERATIONS

Revenues

Rental  income  for the six and  three  months  ended  June 30,  1997  increased
$1,118,000  or 52% and  $699,000 or 67% over the six and three months ended June
30,  1996,  respectively,  primarily  as a result  of: (i) the  commencement  of
operations of the Inland Regional Center in June 1996; (ii) ground lease revenue
earned from Circuit City as the project was under  construction  from  September
1996 through May 1997;  (iii) the  commencement  of the Circuit  City  operating
lease in May 1997; (iv) the acquisition of the TGI Friday's property in February
1997; and (v) the increased occupancy at One Vanderbilt, Two Vanderbilt, Service
Retail Center,  and  Shadowridge  Woodbend  Apartments  during the six and three
months ended June 30, 1997 over the six and three months ended June 30, 1996.

Occupancy rates at the Partnership's Tri-City properties as of June 30, 1997 and
1996 were as follows:
                                                             June 30,
                                                          1997       1996
                                                        --------   -------

      One Vanderbilt                                      90%         59%
      Two Vanderbilt                                      90%         25%
      Service Retail Center                              100%         97%
      Carnegie Business Center I                          81%         87%
      Promotional Retail Center-Phase I                   97%         97%
      Inland Regional Center (commenced operations
         June, 1996)                                     100%        100%
      TGI Friday's (acquired February 28, 1997)          100%        n/a
      Circuit City (commenced operations May, 1997)      100%        n/a

As of June 30,  1997,  tenants at  Tri-City  occupying  substantial  portions of
leased rental space included:  (i) ITT  Educational  Services with a lease which
expires in December 2004;  (ii) Inland Regional Center with a lease through July
2009; (iii) CompUSA with a lease through August 2003; (iv) PetsMart with a lease
through  January 2009;  (v) Circuit City with a lease through  January 2018; and
(vi)  Fidelity  National  Title  with a lease  through  August  2003.  These six
tenants,  in the aggregate,  occupied  approximately  219,000 square feet of the
412,000 total  leasable  square feet at Tri-City as of June 30, 1997 and account
for 52% of the rental  income  generated at Tri-City and 38% of the total rental
income for the Partnership during the first half of 1997.

Interest income  decreased  $43,000 or 80% and $23,000 or 88% during the six and
three months ended June 30, 1997 compared to the six and three months ended June
30, 1996, respectively,  due to a lower average cash balance in 1997 as a result
of additions to real estate and property development costs in the second half of
calendar year 1996 and the  elimination  of the interest  income on the $405,000
note  receivable  that was retired as part of the acquisition of TGI Friday's on
February 28, 1997.





                                 Page 13 of 16
<PAGE>



Expenses:

Operating  expenses increased $418,000 or 40% and $231,000 or 44% during the six
and three  months  ended June 30, 1997 over the six and three  months ended June
30, 1996,  respectively,  due to: (i) the addition of the Inland Regional Center
as an operating  property in June 1996;  (ii) increased  utility and operational
expenses  related to  increased  occupancy  at  selected  properties;  and (iii)
property tax refunds received in the first half of 1996.

Interest  expense  increased  $244,000 or 40% and $112,000 or 31% during the six
and three  months  ended June 30,  1997  compared  to the same  periods in 1996,
respectively,  due  to  the  increased  debt  to  finance  the  acquisition  and
construction of properties over the past year.

Depreciation  and  amortization for the six and three months ended June 30, 1997
increased $131,000 or 19% and $43,000 or 11% from the six and three months ended
June 30, 1996, respectively, primarily as a result of the acquisition/operations
of the Inland Regional Center, TGI Friday's and Circuit City properties over the
past year.

Expenses  associated with undeveloped land decreased  $77,000 or 19% and $71,000
or 32% during the six and three months  ended June 30, 1997  compared to the six
and three  months  ended June 30, 1996,  respectively,  due to the  reduction of
property taxes  resulting from a reduction by the Assessor's  office of assessed
values of selected parcels of land.






                                 Page 14 of 16
<PAGE>



Part II. OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

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

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:

              #27 - Financial Data Schedule

         (b)  Reports on Form 8-K:

              None.




                                 Page 15 of 16
<PAGE>



                                   SIGNATURES



Pursuant  to the  requirements  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.


                                 RANCON REALTY FUND IV,
                                 a California Limited Partnership
                                 (Registrant)





Date: August 13, 1997            By: /s/ Daniel L. Stephenson
                                     ------------------------
                                     Daniel L. Stephenson
                                     Chief Executive Officer and
                                     Chief Financial Officer of
                                     Rancon Financial Corporation,
                                     General Partner of
                                     Rancon Realty Fund IV,
                                     a California Limited Partnership















                                 Page 16 of 16
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