FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


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

                  For the quarterly period ended June 30, 1998
                            -------------------------

                                       OR

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

                       For the transition period from to


                             Commission file number
                                     0-23974


                            CNL Income Fund XIV, Ltd.
             (Exact name of registrant as specified in its charter)


          Florida                        59-3143096
(State or other jurisdiction            (I.R.S. Employer
of incorporation or organiza-           Identification No.)
tion)


400 E. South Street
Orlando, Florida                                32801
----------------------------                -----------------
(Address of principal                       (Zip Code)
executive offices)


Registrant's telephone number
(including area code)                         (407) 422-1574


Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 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


<PAGE>









                                    CONTENTS






Part I                                                            Page

  Item 1.  Financial Statements:

             Condensed Balance Sheets                             1

             Condensed Statements of Income                       2

             Condensed Statements of Partners' Capital            3

             Condensed Statements of Cash Flows                   4

             Notes to Condensed Financial Statements              5-7

  Item 2.  Management's Discussion and Analysis
             of Financial Condition and
             Results of Operations                                8-12


Part II

  Other Information                                               13


<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                            CONDENSED BALANCE SHEETS


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

Land and buildings on operating
  leases, less accumulated
  depreciation of $1,464,303
  and $1,295,713                        $24,445,092            $25,217,725
Net investment in direct
  financing leases                        8,516,276              9,041,485
Investment in joint ventures              3,569,058              3,271,739
Cash and cash equivalents                 2,021,634              1,285,777
Restricted cash                             516,707                318,592
Receivables, less allowance for
  doubtful accounts of $27,679
  in 1998                                     3,990                 19,912
Prepaid expenses                             16,631                  7,915
Organization costs, less
  accumulated amortization of
  $9,599 and $8,599                             401                  1,401
Accrued rental income, less
  allowance for doubtful accounts
  of $9,458 and $6,295                    1,730,571              1,820,078
                                        -----------            -----------

                                        $40,820,360            $40,984,624
                                        ===========            ===========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                        $     3,608            $    10,258
Accrued and escrowed real
  estate taxes payable                        6,847                 19,570
Distributions payable                       928,130                928,130
Due to related parties                        4,356                  7,853
Rents paid in advance                       109,501                 29,656
                                        -----------            -----------
    Total liabilities                     1,052,442                995,467

Commitment (Note 6)

Partners' capital                        39,767,918             39,989,157
                                        -----------            -----------

                                        $40,820,360            $40,984,624
                                        ===========            ===========


            See accompanying notes to condensed financial statements.

                                        1

<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                         CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>


                                                            Quarter Ended                       Six Months Ended
                                                              June 30,                             June 30,
                                                     1998             1997               1998              1997
                                                  ----------       ----------         ----------        -------
<S> <C>
Revenues:
  Rental income from
    operating leases                              $  444,632       $  723,510         $1,161,909        $1,447,278
  Earned income from direct
    financing leases                                 218,056          254,713            460,275           510,005
  Interest and other income                           25,483           16,560             46,462            30,602
                                                  ----------       ----------         ----------        ----------
                                                     688,171          994,783          1,668,646         1,987,885
                                                  ----------       ----------         ----------        ----------

Expenses:
  General operating and
    administrative                                    42,628           40,191             78,931            76,406
  Professional services                               10,695            5,796             16,877            11,584
  Bad debt expense                                        -                -                  -             14,000
  Management fees to
    related parties                                    9,280            9,736             18,786            19,290
  Real estate taxes                                    1,276            1,638              4,726             5,808
  State and other taxes                                   40               47             21,036            21,874
  Depreciation and
    amortization                                      85,053           85,033            170,106           170,055
                                                  ----------       ----------         ----------        ----------
                                                     148,972          142,441            310,462           319,017
                                                  ----------       ----------         ----------        ----------

Income Before Equity in
  Earnings of Joint
  Ventures and Gain on
  Sale of Land                                       539,199          852,342          1,358,184         1,668,868

Equity in Earnings of
  Joint Ventures                                      82,126           77,577            164,631           152,823

Gain on Sale of Land and
  Building                                            41,408               -             112,206                -
                                                  ----------       ----------         ----------        ---------

Net Income                                        $  662,733       $  929,919         $1,635,021        $1,821,691
                                                  ==========       ==========         ==========        ==========

Allocation of Net Income:
  General partners                                $    6,214       $    9,299         $   15,228        $   18,217
  Limited partners                                   656,519          920,620          1,619,793         1,803,474
                                                  ----------       ----------         ----------        ----------

                                                  $  662,733       $  929,919         $1,635,021        $1,821,691
                                                  ==========       ==========         ==========        ==========

Net Income Per Limited
  Partner Unit                                    $     0.15       $     0.20         $     0.36        $     0.40
                                                  ==========       ==========         ==========        ==========

Weighted Average Number
  of Limited Partner
  Units Outstanding                                4,500,000        4,500,000          4,500,000         4,500,000
                                                  ==========       ==========         ==========        ==========

</TABLE>


            See accompanying notes to condensed financial statements.

                                        2

<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                    CONDENSED STATEMENTS OF PARTNERS' CAPITAL


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

General partners:
  Beginning balance                 $   146,640                 $   109,981
  Net income                             15,228                      36,659
                                    -----------                 -----------
                                        161,868                     146,640
                                    -----------                 -----------

Limited partners:
  Beginning balance                  39,842,517                  39,925,756
  Net income                          1,619,793                   3,629,281
  Distributions ($0.41 and
    $0.83 per limited partner
    unit, respectively)              (1,856,260)                 (3,712,520)
                                    -----------                 -----------
                                     39,606,050                  39,842,517
                                    -----------                 -----------

Total partners' capital             $39,767,918                 $39,989,157
                                    ===========                 ===========


            See accompanying notes to condensed financial statements.

                                        3

<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                       CONDENSED STATEMENTS OF CASH FLOWS


                                                    Six Months Ended
                                                         June 30,
                                              1998                     1997
                                           ----------               ---------

Increase (Decrease) in Cash and
  Cash Equivalents:

    Net Cash Provided by Operating
      Activities                           $1,845,728               $1,807,883
                                           ----------               ----------

    Cash Flows from Investing
      Activities:
        Proceeds from sale of land
          and building                      1,250,140                       -
        Investment in joint venture          (310,097)                      -
        Return of capital from joint
          venture                                  -                    51,950
        Increase in restricted cash          (193,654)                      -
                                           ----------               ---------
            Net cash provided by
              investing activities            746,389                   51,950
                                           ----------               ----------

    Cash Flows from Financing
      Activities:
        Distributions to limited
          partners                         (1,856,260)              (1,856,260)
                                           ----------               ----------
            Net cash used in
              financing activities         (1,856,260)              (1,856,260)
                                           ----------               ----------

Net Increase in Cash and Cash
  Equivalents                                 735,857                    3,573

Cash and Cash Equivalents at
  Beginning of Period                       1,285,777                1,462,012
                                           ----------               ----------

Cash and Cash Equivalents at
  End of Period                            $2,021,634               $1,465,585
                                           ==========               ==========

Supplemental Schedule of Non-Cash
  Financing Activities:

    Distributions declared and
      unpaid at end of period              $  928,130               $  928,130
                                           ==========               ==========








            See accompanying notes to condensed financial statements.

                                        4

<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 1998 and 1997


1.       Basis of Presentation:

         The accompanying  unaudited  condensed  financial  statements have been
         prepared in accordance  with the  instructions  to Form 10-Q and do not
         include  all  of the  information  and  note  disclosures  required  by
         generally  accepted  accounting  principles.  The financial  statements
         reflect all adjustments,  consisting of normal  recurring  adjustments,
         which are, in the opinion of management,  necessary to a fair statement
         of the results for the interim periods presented. Operating results for
         the six  months  ended  June 30,  1998,  may not be  indicative  of the
         results  that may be expected  for the year ending  December  31, 1998.
         Amounts as of December 31, 1997, included in the financial  statements,
         have been derived from audited financial statements as of that date.

         These unaudited financial statements should be read in conjunction with
         the financial statements and notes thereto included in Form 10-K of CNL
         Income Fund XIV, Ltd. (the  "Partnership")  for the year ended December
         31, 1997.

2.       Land and Buildings on Operating Leases:

         During the six months ended June 30,  1998,  the  Partnership  sold its
         properties  in  Madison,  Alabama  and  Richmond,  Virginia,  to  third
         parties,  for a total of $1,252,462  and received net sales proceeds of
         $1,208,732,  resulting  in  a  total  gain  of  $70,798  for  financial
         reporting  purposes.  These properties were originally  acquired by the
         Partnership  in 1993  and 1994 and had  costs  totalling  approximately
         $1,041,400,  excluding  acquisition fees and miscellaneous  acquisition
         expenses;  therefore, the Partnership sold these properties for a total
         of approximately $167,300 in excess of their original purchase prices.

         In addition,  in April 1998,  the  Partnership  reached an agreement to
         accept $360,000 for the property in Riviera Beach,  Florida,  which was
         taken through a right of way taking in December 1997.  The  Partnership
         had received  preliminary sales proceeds of $318,592 as of December 31,
         1997.  Upon agreement and receipt of the final sales price of $360,000,
         the  Partnership  recognized a gain of $41,408 for financial  reporting
         purposes.  This property was originally  acquired by the Partnership in
         1994 and had a cost of approximately  $276,400,  excluding  acquisition
         fees and miscellaneous acquisition expenses; therefore, the Partnership
         sold this  property for a total of  approximately  $83,600 in excess of
         its original  purchase price.  The Partnership  intends to reinvest the
         net sales  proceeds  from the sale of this  property  in an  additional
         property.

                                        5

<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 1998 and 1997


3.       Net Investment in Direct Financing Leases:

         In January 1998, the Partnership sold its property in Madison, Alabama,
         for  which  the  building  portion  had  been  classified  as a  direct
         financing lease. In connection therewith, the gross investment (minimum
         lease  payments  receivable  and  the  estimated  residual  value)  and
         unearned income relating to the building were removed from the accounts
         (see Note 2).

4.       Investment in Joint Ventures:

         In  April  1998,   the   Partnership   entered  into  a  joint  venture
         arrangement,   Melbourne  Joint  Venture,  with  an  affiliate  of  the
         Partnership which has the same general partners,  to construct and hold
         one restaurant property, at a total cost of $1,052,552.  As of June 30,
         1998, the Partnership and its co-venture  partner had each  contributed
         $236,535  to  purchase  land  relating  to  the  joint   venture.   The
         Partnership agreed to contribute  approximately  $289,700 in additional
         construction  costs to the joint venture.  The  Partnership  expects to
         have a 50  percent  interest  in the  profits  and  losses of the joint
         venture.  The  Partnership  accounts for its  investment  in this joint
         venture under the equity method since the  Partnership  shares  control
         with an affiliate.

         As of June 30,  1998,  Attalla  Joint  Venture,  Salem  Joint  Venture,
         Kingston  Joint  Venture and  Melbourne  Joint  Venture  each owned and
         leased one property, and Wood-Ridge Real Estate Joint Venture owned and
         leased six  properties,  to  operators  of  fast-food  or  family-style
         restaurants.  The following presents the combined,  condensed financial
         information for the joint ventures at:

                                                June 30,       December 31,
                                                  1998             1997

                  Land and buildings on
                    operating leases,
                    less accumulated
                    depreciation               $6,398,783       $6,008,240
                  Net investment in direct
                    financing lease               362,702          364,479
                  Cash                              7,037           13,842
                  Receivables                       4,760            2,571
                  Accrued rental income           195,534          150,621
                  Other assets                      1,555            1,257
                  Liabilities                      22,587          231,061
                  Partners' capital             6,947,784        6,309,949
                  Revenues                        387,801          712,004
                  Net income                      319,053          588,835

                                        6

<PAGE>



                            CNL INCOME FUND XIV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 1998 and 1997


4.       Investment in Joint Ventures - Continued:

         The Partnership  recognized income totalling  $164,631 and $152,823 for
         the six months ended June 30, 1998 and 1997,  respectively,  from these
         joint  ventures,  $82,126  and  $77,577  of which  was  earned  for the
         quarters ended June 30, 1998 and 1997, respectively.

5.       Restricted Cash:

         As of June 30, 1998,  $512,246 in net sales  proceeds  from the sale of
         the Property in Richmond,  Virginia,  plus accrued  interest of $4,461,
         were being  held in an  interest-bearing  escrow  account  pending  the
         release of funds by an escrow agent to acquire an additional property.

6.       Subsequent Event:

         In July 1998, the Partnership sold its property in Richmond,  Virginia,
         to a third  party for  $415,000  and  received  net sales  proceeds  of
         $397,970.  Due to the fact that at June 30, 1998, the Partnership wrote
         off $12,829 of accrued rental income (non-cash  accounting  adjustments
         relating to the straight-lining of future scheduled rent increases over
         the  lease  term  in  accordance  with  generally  accepted  accounting
         principles),  no gain or loss will be recorded for financial  reporting
         purposes relating to the sale.



                                        7

<PAGE>



ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS

         CNL Income Fund XIV,  Ltd.  (the  "Partnership")  is a Florida  limited
partnership  that was  organized  on September  25,  1992,  to acquire for cash,
either directly or through joint venture  arrangements,  both newly  constructed
and existing  restaurants,  as well as properties upon which restaurants were to
be constructed  (the  "Properties"),  which are leased primarily to operators of
national and regional  fast-food and family-style  restaurant chains. The leases
are  triple-net  leases,  with  the  lessee  responsible  for  all  repairs  and
maintenance,  property taxes, insurance and utilities.  As of June 30, 1998, the
Partnership owned 56 Properties, including interests in nine Properties owned by
joint ventures in which the Partnership is a co-venturer.

Liquidity and Capital Resources

         The  Partnership's  primary  source of capital for the six months ended
June 30, 1998 and 1997, was cash from  operations  (which includes cash received
from tenants,  distributions from joint ventures,  and interest and other income
received, less cash paid for expenses).  Cash from operations was $1,845,728 and
$1,807,883  for the six months ended June 30, 1998 and 1997,  respectively.  The
increase in cash from  operations  for the six months  ended June 30,  1998,  as
compared to the six months ended June 30, 1997, is primarily a result of changes
in the Partnership's working capital.

         Other sources and uses of capital included the following during the six
months ended June 30, 1998.

         In January 1998, the Partnership sold its Property in Madison, Alabama,
to a third party for $740,000 and received net sales  proceeds of $696,486.  Due
to the fact that during 1997 the Partnership wrote off $13,314 in accrued rental
income  (non-cash  accounting  adjustments  relating to the  straight-lining  of
future scheduled rent increases over the lease term in accordance with generally
accepted  accounting  principles),  no gain or loss was incurred  for  financial
reporting  purposes in January  1998  relating to this sale.  This  Property was
originally  acquired  by the  Partnership  in  December  1993  and had a cost of
approximately $659,000, excluding acquisition fees and miscellaneous acquisition
expenses; therefore, the Partnership sold the Property for approximately $37,500
in excess  of its  original  purchase  price.  In April  1998,  the  Partnership
reinvested a portion of the net sales  proceeds from the sale of the Property in
Madison,  Alabama  in a  joint  venture  arrangement  as  described  below.  The
Partnership  intends to use the  remaining  proceeds to invest in an  additional
Property or for other  Partnership  purposes.  The  Partnership  will distribute
amounts  sufficient  to enable the  limited  partners  to pay  federal and state
income taxes, if any (at a level  reasonably  assumed by the general  partners),
resulting from the sale.



                                        8

<PAGE>



Liquidity and Capital Resources - Continued

         In  addition,  in  January  1998,  the  Partnership  sold  one  of  its
Properties in Richmond, Virginia for $512,462 and received net sales proceeds of
$512,246,  resulting in a gain of $70,798 for financial reporting purposes. This
Property was originally acquired by the Partnership in March 1994 and had a cost
of  approximately   $382,400,   excluding  acquisition  fees  and  miscellaneous
acquisition  expenses;   therefore,   the  Partnership  sold  the  Property  for
approximately  $129,800 in excess of its original purchase price. As of June 30,
1998, the net sales proceeds of $512,246 plus accrued  interest of $4,461,  were
being held in an interest-bearing escrow account pending the release of funds by
the escrow agent to acquire an additional  Property.  The Partnership intends to
reinvest  the net sales  proceeds  from the sale of the  Property  in  Richmond,
Virginia in an  additional  Property.  The  general  partners  believe  that the
transaction,  or a portion  thereof,  relating  to the sale of the  Property  in
Richmond,  Virginia, and the reinvestment of the net sales proceeds will qualify
as a like-kind  exchange  transaction for federal income tax purposes.  However,
the  Partnership  will  distribute  amounts  sufficient  to enable  the  limited
partners to pay federal and state income  taxes,  if any (at a level  reasonably
assumed by the general partners), resulting from the sale.

         In addition,  in April 1998,  the  Partnership  reached an agreement to
accept  $360,000 for the  Property in Riviera  Beach,  Florida,  which was taken
through a right of way taking in December  1997.  The  Partnership  had received
preliminary  sales proceeds of $318,592 as of December 31, 1997.  Upon agreement
and receipt of the final sales price of $360,000,  the Partnership  recognized a
gain of $41,408 for financial reporting  purposes.  This Property was originally
acquired by the  Partnership in 1994 and had a cost of  approximately  $276,400,
excluding acquisition fees and miscellaneous  acquisition  expenses;  therefore,
the  Partnership  sold this  Property  for a total of  approximately  $83,600 in
excess of its original  purchase price. The Partnership  intends to reinvest the
net sales proceeds from the sale of this Property in an additional Property.

         In April 1998,  the  Partnership  reinvested a portion of the net sales
proceeds  from the sale of the Property in Madison,  Alabama to Melbourne  Joint
Venture,  with an  affiliate  of the  Partnership  which  has the  same  general
partners,  to construct  and hold one  restaurant  Property,  at a total cost of
$1,052,552.  As of June 30, 1998, the Partnership and its co-venture partner had
each  contributed  $236,535 to purchase land relating to the joint venture.  The
Partnership   agreed  to   contribute   approximately   $289,700  in  additional
construction  costs to the joint venture.  The Partnership  expects to have a 50
percent interest in the profits and losses of the joint venture.




                                        9

<PAGE>



Liquidity and Capital Resources - Continued

         In addition,  in September 1997, the  Partnership  entered into a joint
venture  arrangement,  CNL  Kingston  Joint  Venture,  with an  affiliate of the
Partnership  which has the same  general  partners,  to  construct  and hold one
restaurant  Property.  Construction  of the  restaurant was completed in January
1998. As of June 30, 1998, the Partnership had contributed $206,848 to the joint
venture  and owned a 39.94%  interest  in the  profits  and  losses of the joint
venture.

         Currently,  cash  reserves  and rental  income  from the  Partnership's
Properties  is invested in money  market  accounts or other  short-term,  highly
liquid investments pending the use of such funds to pay Partnership  expenses or
to make  distributions  to  partners.  At June 30,  1998,  the  Partnership  had
$2,021,634 invested in such short-term investments, as compared to $1,285,777 at
December 31, 1997. The increase in cash is primarily attributable to the receipt
of net sales proceeds relating to the sale of the Property in Madison,  Alabama,
net of the amount reinvested in Melbourne Joint Venture,  as described above. In
addition, the increase in cash is partially attributable to the release of funds
held in escrow at December  31, 1997  relating to the right of way taking of the
Property in Riviera Beach,  Florida,  as described above. The funds remaining at
June 30, 1998, after payment of  distributions  and other  liabilities,  will be
used to meet the  Partnership's  working  capital and other needs and to acquire
additional Properties.

         Total liabilities of the Partnership,  including distributions payable,
increased to  $1,052,442  at June 30, 1998,  from $995,467 at December 31, 1997,
primarily  as the  result of an  increase  in rents  paid in advance at June 30,
1998, as compared to December 31, 1997.  The general  partners  believe that the
Partnership  has  sufficient  cash on hand to meet its current  working  capital
needs.

         In July 1998, the Partnership  sold its Property in Richmond,  Virginia
to a third party for $415,000 and received net sales  proceeds of $397,970.  Due
to the fact that at June 30, 1998, the Partnership  wrote off $12,829 of accrued
rental income (non-cash  accounting  adjustments relating to the straight-lining
of future  scheduled  rent  increases  over the lease  term in  accordance  with
generally accepted accounting principles),  no gain or loss will be recorded for
financial  reporting  purposes relating to the sale. The Partnership  intends to
reinvest the net sales proceeds in an additional Property.  The general partners
believe that the transaction or a portion thereof,  relating to the sale of this
Property and the reinvestment of the proceeds will be structured to qualify as a
like-kind exchange transaction for federal income tax purposes.

         Based on current  and  anticipated  future  cash from  operations,  the
Partnership  declared  distributions  to the limited  partners of $1,856,260 for
each of the six months  ended June 30, 1998 and 1997  ($928,130  for each of the
quarters ended June 30, 1998 and 1997).

                                       10

<PAGE>



Liquidity and Capital Resources - Continued

This represents  distributions  for each applicable six months of $0.41 per unit
($0.21 per unit for each applicable quarter).  No distributions were made to the
general  partners  for the quarters and six months ended June 30, 1998 and 1997.
No amounts distributed to the limited partners for the six months ended June 30,
1998 and 1997,  are required to be or have been treated by the  Partnership as a
return of capital for purposes of calculating  the limited  partners'  return on
their adjusted capital contribution. The Partnership intends to continue to make
distributions  of cash available for  distribution to the limited  partners on a
quarterly basis.

         The Partnership's  investment strategy of acquiring Properties for cash
and  leasing  them  under  triple-net  leases to  operators  who meet  specified
financial standards minimizes the Partnership's  operating expenses. The general
partners  believe that the leases will  continue to generate cash flow in excess
of operating expenses.

         The general  partners have the right,  but not the obligation,  to make
additional capital  contributions if they deem it appropriate in connection with
the operations of the Partnership.

Results of Operations

         During the six months ended June 30, 1997,  the  Partnership  owned and
leased 50 wholly owned  Properties  (including  one  Property in Riviera  Beach,
Florida, sold through a right of way taking in December 1997) and during the six
months ended June 30,  1998,  the  Partnership  owned and leased 49 wholly owned
Properties (including two Properties in Madison, Alabama and Richmond, Virginia,
which were sold in January  1998) to  operators of  fast-food  and  family-style
restaurant chains. In connection therewith, during the six months ended June 30,
1998 and 1997, the Partnership  earned $1,622,184 and $1,957,283,  respectively,
in rental income from operating  leases and earned income from direct  financing
leases from these  Properties,  $662,688 and $978,223 of which was earned during
the quarters ended June 30, 1998 and 1997, respectively.  The decrease in rental
and earned  income  during the quarter and six months  ended June 30,  1998,  as
compared  to the  quarter  and six months  ended  June 30,  1997,  is  primarily
attributable  to the fact that in June  1998,  the tenant of the  Properties  in
Albemarle and Shelby, North Carolina; Las Vegas, Nevada and Stockbridge, Georgia
filed  bankruptcy  and rejected the leases  relating to these  Properties.  As a
result,  the  Partnership  wrote off  approximately  $263,000 of accrued  rental
income  (non-cash  accounting  adjustments  relating to the  straight-lining  of
future scheduled rent increases over the lease term in accordance with generally
accepted accounting  principles).  The Partnership also established an allowance
for doubtful  accounts during the quarter and six months ended June 30, 1998, of
approximately $27,700 for rental and earned




                                       11

<PAGE>



Results of Operations - Continued

income amounts due from these tenants,  due to the fact that  collection of such
amounts is questionable. The Partnership is currently seeking either replacement
tenants or purchasers for these Properties.

         In  addition,  the  decrease  in rental  and earned  income  during the
quarter and six months  ended June 30,  1998,  is  partially  attributable  to a
decrease  in rental  and  earned  income  as a result  of the 1998  sales of the
Properties in Madison, Alabama and Richmond,  Virginia and the 1997 right of way
taking of the Property in Riviera Beach, Florida.

         In addition, during the six months ended June 30, 1997, the Partnership
owned and leased eight Properties and during the six months ended June 30, 1998,
the  Partnership  owned and leased  nine  Properties  indirectly  through  joint
venture arrangements.  In connection therewith, during the six months ended June
30, 1998 and 1997, the Partnership  earned $164,631 and $152,823,  respectively,
attributable to net income earned by these joint  ventures,  $82,126 and $77,577
of  which  was  earned  during  the  quarters  ended  June 30,  1998  and  1997,
respectively.  The increase in net income  earned by joint  ventures  during the
quarter and six months ended June 30,  1998,  as compared to the quarter and six
months  ended  June 30,  1997,  is  primarily  attributable  to the  Partnership
investing in Kingston Joint Venture in September 1997.

         Operating expenses,  including  depreciation and amortization  expense,
were  $310,462  and  $319,017  for the six months  ended June 30, 1998 and 1997,
respectively,  of which  $148,972  and $142,441  were  incurred for the quarters
ended June 30, 1998 and 1997,  respectively.  The decrease in operating expenses
during the six months ended June 30,  1998,  as compared to the six months ended
June 30,  1997,  is  primarily  attributable  to the fact that  during  1997 the
Partnership  recorded  bad debt  expense of $14,000  relating to the Property in
Akron,  Ohio due to the tenant  ceasing  restaurant  operations and vacating the
Property.  This  Property was  re-leased to a new tenant in September  1997 with
rental income  commencing in December 1997. No such expense was recorded  during
the six months ended June 30, 1998.

         As a result of the sale of the  Property in Richmond,  Virginia  during
the six months ended June 30, 1998,  and the receipt of proceeds  from the right
of way taking of the Property in Riviera Beach, Florida,  during the quarter and
six months ended June 30, 1998,  as described  above in  "Liquidity  and Capital
Resources,"  the  Partnership  recognized  gains of  $41,408  and  $112,206  for
financial  reporting  purposes  during the quarter and six months ended June 30,
1998,  respectively.  No Properties  were sold during the quarter and six months
ended June 30, 1997.

                                       12

<PAGE>



                           PART II. OTHER INFORMATION


Item 1.           Legal Proceedings.  Inapplicable.

Item 2.           Changes in Securities.  Inapplicable.

Item 3.           Defaults upon Senior Securities.  Inapplicable.

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

                  Inapplicable.

Item 5.           Other Information.  Inapplicable.

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

                  (a)      Exhibits - None.

                  (b)      No reports on Form 8-K were filed  during the quarter
                           ended June 30, 1998.

                                       13

<PAGE>


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

         DATED this 4th day of August, 1998.


                            CNL INCOME FUND XIV, LTD.

                             By:      CNL REALTY CORPORATION
                                      General Partner


                                      By:      /s/ James M. Seneff, Jr.
                                               ----------------------------
                                               JAMES M. SENEFF, JR.
                                               Chief Executive Officer
                                               (Principal Executive Officer)


                                      By:      /s/ Robert A. Bourne
                                               ----------------------------
                                               ROBERT A. BOURNE
                                               President and Treasurer
                                               (Principal Financial and
                                               Accounting Officer)