UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, DC  20549
                                   
                               FORM 10-K

(Mark One)
[X]  ANNUAL  REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE  SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]

For the fiscal year ended             December 31, 1998
                          --------------------------------------------
[   ]  TRANSITION  REPORT  PURSUANT TO SECTION  13  OR  15(D)  OF  THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the transition period from                      to
                               --------------------    ---------------
Commission file number                     33-11907
                       -----------------------------------------------
                    DIVERSIFIED HISTORIC INVESTORS IV
----------------------------------------------------------------------
        (Exact name of registrant as specified in its charter)

           Pennsylvania                                  23-2440837
------------------------------                     -------------------
incorporation or organization                         (I.R.S. Employer
(State or other jurisdiction of                    Identification No.)

              1609  WALNUT  STREET,  PHILADELPHIA, PA  19103
----------------------------------------------------------------------
(Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code  (215) 557-9800

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

Securities registered pursuant to Section 12(g) of the Act: 8,285.7 Units

                  UNITS OF LIMITED PARTNERSHIP INTEREST
----------------------------------------------------------------------
                           (Title of Class)

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

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

Aggregate  market  value  of  Units  held  by  non-affiliates  of  the
Registrant: Not Applicable*

*  Securities  not  quoted  in  any  trading  market  to  Registrant's
knowledge.
<PAGE>

                                PART I

Item 1.        Business

               a.   General Development of Business

                     Diversified  Historic Investors IV ("Registrant")
is a limited partnership formed in 1987 under Pennsylvania Law.  As of
December 31, 1998, Registrant had outstanding 8,285.7 units of limited
partnership interest (the "Units").

                     Registrant  is presently in its operating  stage.
It  originally  owned  three  properties or  interests  therein.   One
property  has  been sold.  See Item 2. Properties, for  a  description
thereof.   It currently owns two properties. For a discussion  of  the
operations  of  the  Registrant, See Part  II,  Item  7.  Management's
Discussion  and  Analysis  of  Financial  Conditions  and  Results  of
Operations.

                      The   following  is  a  summary  of  significant
transactions involving the Registrant's interests:

                    During 1994, the Registrant converted the property
(Henderson  Riverfront Apartments) owned by 700 Commerce Mall  General
Partnership  ("CMGP"), a Louisiana general partnership  in  which  the
Registrant  owns a 95% interest, into condominiums ("the  Units")  and
began  offering the Units for sale.  The Units were marketed and  sold
by  an affiliate of the Registrant's co-general partner ("HRI").   The
asking  prices of the units ranged from $72,000 to $135,000, depending
on  size, configuration and location within the building.  Funds  were
necessary  during the selling period for improvements and  repairs  to
common areas, individual unit upgrades, marketing, selling costs,  and
fees.   During  1996  and  1995,  these  expenses  were  approximately
$146,000  and $416,000, respectively, and were funded from  the  sales
proceeds.   One  of the difficulties in selling condominium  units  in
today's  market is the buyers' frequent inability to obtain financing.
Most  banks  offering residential financing require that  their  loans
meet Federal National Mortgage Association ("FNMA") requirements.  One
such requirement is that the unit being financed cannot be a part of a
project in which 30% or more of the units are owned by investors.   At
conversion,  the Henderson Apartments were owned 100%  by  CMGP,  and,
therefore,  did  not  meet FNMA requirements.   Because  of  this  and
similar market conditions, the seller, CMGP, provided financing for  a
large percentage of the units sold.  All loans required a minimum  10%
down  payment,  and  all purchasers were qualified by  an  independent
mortgage  brokerage company, using FNMA guidelines.   The  loans  were
collateralized  by  the condominium units and bore interest  at  rates
ranging from 6 1/2% to 8 1/4%.  The loans consisted of two types, a 30-
year  fixed rate mortgage and a 7/23 loan.  The interest rate  on  the
7/23 loan during the initial 7-year term is fixed.  Interest after the
7th anniversary of the loan is reset at 250 basis points in excess  of
the  10-year Treasury Note as reported in the Wall Street Journal  for
the  next  business  day immediately preceding such  7th  anniversary,
rounded  upward to the next highest 1/8% of 1%, with a cap  of  13.5%.
Interest and principal are due monthly and all principal payments  are
based  on  a 30-year amortization schedule.  As of December 31,  1996,
all  61  Units  had  been sold for an aggregate amount  of  $6,009,745
($4,055,459   net  of  selling  expenses  and  capital   expenditures,
including those described above).  The Units sold ranged in price from
$71,250  to $148,200.  Of the Units sold, 46 of the buyers  opted  for
the  seller  provided  financing with loans ranging  from  $62,700  to
$181,900.

                On  December 30, 1997, the mortgage loans  were  sold.
These mortgages were "nonconforming", which means that they could  not
be  sold  on  the  standard  secondary  market.   Moreover,  even  for
"conforming"  mortgages the market for loans secured by properties  in
Louisiana  is  limited, based upon certain perceived  difficulties  in
exercising  foreclosure rights in Louisiana.  However,  despite  these
problems, the Registrant believed that the current generally favorable
economic  environment  provided an unusual  opportunity  to  sell  the
mortgages.   Any  deterioration in the  real  estate  markets  or  the
interest rate environment would have substantially decreased the value
of  the  mortgage  loans  and, of course,  would  have  increased  the
likelihood  of  defaults  thereunder.  In soliciting  offers  for  the
loans,  prospective buyers were unwilling to pay more than 70% to  75%
of  the  face  amount  of  the  loans.  However,  the  Registrant  was
ultimately able to procure a purchaser who was willing to pay 85.5% of
the face values.  Included in operations is a loss of $448,957 related
to the sale of the loans.

               b.   Financial Information about Industry Segments

                    The Registrant operates in one industry segment.

               c.   Narrative Description of Business

                     Registrant  is  in  the  business  of  operating,
holding,  selling, exchanging and otherwise dealing in and  with  real
properties  containing  improvements  which  are  "Certified  Historic
Structures," as such term is defined in the Internal Revenue Code (the
"Code")  for use as apartments, offices, hotels and commercial spaces,
or any combination thereof, or low income housing eligible for the tax
credit provided by Section 42 of the Code, and such other uses as  the
Registrant's general partner may deem appropriate.

                      Since   the  Registrant's  inception,  all   the
properties  acquired  either  by  the Registrant,  or  the  subsidiary
partnerships in which it has an interest, have been rehabilitated  and
certified  as  Historic  Structures  and  have  received  the  related
Investment  Tax  Credit.   All  the properties  are  held  for  rental
operations.   At  this time it is anticipated that the  two  remaining
properties will continue to be held for this purpose until  such  time
as  real  property values in the areas in which these  properties  are
located  begin  to  increase.  At that time, the Registrant  will  re-
evaluate its investment strategy regarding the properties.

                      As   of  December  31,  1998,  Registrant  owned
interests  in  two  properties, located in North  Carolina  (one)  and
Pennsylvania  (one).   In total, the properties contain  22  apartment
units.  As of December 31, 1998, all of the apartment units were under
lease  at  monthly rental rates ranging from $505 to $825.  Rental  of
the  apartments  is  not  expected to  be  seasonal.   For  a  further
discussion of the properties, see Item 2. Properties.

                     The Registrant is affected by and subject to  the
general   competitive  conditions  of  the  residential  real   estate
industry.   As  a  result of the overbuilding  that  occurred  in  the
1980's,  the competition for residential tenants in the local  markets
where the Registrant's properties are located is generally strong.  As
a   result,  the  Registrant  is  forced  to  keep  its  rent   levels
competitively  low  in order to maintain moderate  to  high  occupancy
levels.   The properties held for rental by the Registrant are located
in  Philadelphia, Pennsylvania and Concord, North Carolina.   In  both
areas  there  are several similar historically certified rehabilitated
buildings.   However, there is no organization which holds a  dominant
position in the residential housing market in either of the geographic
areas in which the Registrant's properties are located.  The apartment
market   remains   stable  and  new  construction  remains   virtually
nonexistent although the availability of favorable home financing  has
placed pressure on the rental tenant base.

                      Registrant   has  no  employees.    Registrant's
activities are overseen by Brandywine Construction & Management, Inc.,
("BCMI"), a real estate management firm.

                d.    Financial Information About Foreign and Domestic
Operations and Export Sales.

                    See Item 8. Financial Statements and Supplementary
Data.

Item 2.        Properties

               As of the date hereof, Registrant owned two properties,
or  interests therein.  A summary description of each property held at
December 31, 1998 is given below.

                a.    The  Brass  Works - consists  of  12  apartments
located  at 231-237 Race Street, Philadelphia, Pennsylvania.   In  May
1987,   Registrant  acquired  and  rehabilitated  the   Property   for
$1,200,000   ($111  per  square  foot  "sf")  funded  by  its   equity
contribution.

                     The property is managed by BCMI.  At December 31,
1998,  all of the apartment units were under lease (100%) with monthly
rents  ranging from $690 to $825.  All leases are renewable,  one-year
leases.   The occupancy for the previous four years was 92% for  1997,
89% for 1996, 92% for 1995 and 88% for 1994.  The monthly rental range
has  been  approximately the same since 1994.  For tax purposes,  this
property  has  a  federal tax basis of $1,202,969 and  is  depreciated
using the straight-line method with a useful life of 27.5 years.   The
annual  real  estate taxes are $9,256 which is based  on  an  assessed
value  of $112,000 taxed at a rate of $8.264 per $100.  No one  tenant
occupies  ten percent or more of the building.  It is the  opinion  of
the  management  of  the  Registrant that the property  is  adequately
covered by insurance.

                b.    Locke  Mill  Plaza -consists of  10  residential
apartment condominium units in a 169 condominium unit project  located
on  Buffalo  Avenue  at Union Street in Concord, North  Carolina.   In
November  1988, Registrant acquired the units for $665,0000 funded  by
its equity contribution.

                     The  property is managed by BCMI.  As of December
31,  1998, all of the units were under lease (100%) with monthly rates
ranging from $505 to $545.  All leases are renewable, one-year leases.
The  occupancy for the previous four years was 89% for 1997,  95%  for
1996,  90%  for 1995 and 98% for 1994.  The monthly rental  range  has
been  approximately  the  same since 1994.   For  tax  purposes,  this
property has a federal tax basis of $692,942 and is depreciated  using
the straight-line method with a useful life of 27.5 years.  The annual
real  estate taxes are $4,459 which is based on an assessed  value  of
$424,670  taxed  at a rate of $1.08 per $100.  No one tenant  occupies
ten  percent  or  more  of the building.  It is  the  opinion  of  the
management  of the Registrant that the property is adequately  covered
by insurance.

Item 3.        Legal Proceedings

                a.   To the best of its knowledge, Registrant is not a
party  to,  nor  is any of its property the subject  of,  any  pending
material legal proceeding.

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

               No matter was submitted during the fiscal years covered
by this report to a vote of security holders.

                                PART II

Item  5.         Market  for  Registrant's Common Equity  and  Related
Stockholder Matters

                a.   There is no established public trading market for
the  Units.   Registrant  does not anticipate  any  such  market  will
develop.    Trading  in  the  Units  occurs  solely  through   private
transactions.   The  Registrant is not aware of the  prices  at  which
trades occur.  Registrant's records indicate that 741 units were  sold
or exchanged in 1998.

                b.    As  of December 31, 1998, there were 946  record
holders of Units.

               c.     In 1998 and 1997 Registrant made distributions in
the amount of $2,529,533 and $276,190 out of available cash flow.

Item 6.        Selected Financial Data

                The following selected financial data are for the five
years ended December 31, 1998.  The data should be read in conjunction
with  the consolidated financial statements included elsewhere herein.
This data is not covered by the independent auditors' report.

                             1998       1997       1996       1995       1994
                                                                          
 Rental income          $  190,058 $  180,312 $  267,148 $  393,751 $  607,399
 Interest income            35,117    274,358    196,100    125,505     11,907
 Net (loss) earnings       (60,005)  (541,583)   (25,170)  (119,070)   528,832
 Net (loss) earnings                                           
 per Unit                    (7.17)    (64.71)     (3.01)    (13.03)     63.18
 Total assets (net of    2,029,350  4,802,128  5,574,564  6,095,438  6,479,965
 depreciation and
 amortization)
 Dividends (distribu-    2,529,533    276,190    276,190    291,206          0
 tions)                                                           

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

               (1)  Liquidity

                     At  December  31, 1998, Registrant  had  cash  of
approximately  $603,499.  The Registrant expects that the  funds  plus
the   cash  generated  from  operations  at  each  property  and  note
receivable payments will be sufficient to fund the operating  expenses
of  the  properties.   In addition to the operating  expenses  of  the
properties, the Registrant distributed $2,504,238 and $248,571 to  the
limited  partners in March 1998 and November 1997, respectively.   The
Registrant is not aware of any additional sources of liquidity.

                    As of December 31, 1998, Registrant had restricted
cash  of  $23,673  consisting primarily  of  funds  held  as  security
deposits,  replacement reserves, escrows for taxes and  insurance  and
unpaid conversion fees.  As a consequence of these restrictions as  to
use, Registrant does not deem these funds to be a source of liquidity.

                    HRI, the Partnership's co-general partner in CMGP,
was  paid a 10% conversion fee (the "Conversion Fee") on the  sale  of
any   Unit  in  the  Henderson  Apartments  (see  Item  1(a)   General
Development  of  Business)  at or above the agreed-upon  sales  price.
Such  fee  was  payable upon the closing of the  sale  of  each  Unit,
provided  that the Conversion Fee from the sale of the first 30  Units
was deferred and paid as follows:

                    (i)   $125,000 at the closing of the 31st unit

                                  (ii)   the  remaining portion  ("the
                          Remainder")  at  the  rate  of  5%  of   the
                          Remainder at the closing of the sale of each
                          of the 42nd through 61st Units

As of December 31, 1996, all Conversion fees (including deferred fees)
had  been paid to HRI.  In addition, HRI was paid a selling commission
equal to 3.5% of the selling price of each Unit.  Commissions paid  to
HRI during 1996 were $88,452.

               (2)  Capital Resources

                     Any  capital  expenditures needed  are  generally
replacement  items  and  are funded out of  cash  from  operations  or
replacement reserves, if any.  At the Henderson Apartments, funds were
necessary  during the selling period for improvements and  repairs  to
common areas, individual unit upgrades, marketing, selling costs,  and
fees.   During  1996, these expenses were approximately  $146,000  and
were  funded  by  sales proceeds.  As all of the units  were  sold  by
December 31,1996, no such expenses were incurred in 1997.  Other  than
the  above,  the  Registrant is not aware of any factors  which  would
cause  historical capital expenditures levels not to be indicative  of
capital  requirements in the future and accordingly, does not  believe
that  it will have to commit material resources to capital investments
for the foreseeable future

               (3)  Results of Operations

                     During  1998, Registrant incurred a net  loss  of
$60,005  ($7.17 per limited partnership unit) compared to  a  loss  of
$541,583 ($64.71 per limited partnership unit) in 1997 and a  loss  of
$25,170 ($3.01 per limited partnership unit) in 1996.  Included in the
loss for 1997 is the $448,957 loss related to the sale on the notes as
referred  to in Item 1a, above.  Included in the loss for  1996  is  a
gain  of $74,551 due to the sale of Units at the Henderson Apartments.
In   March   1998  and  November  1997,  the  Registrant   distributed
approximately  $2,529,533 and $291,000, respectively  to  the  limited
partners and General Partner.

                     Rental income decreased from $267,148 in 1996  to
$180,312 in 1997 and increased to $190,058 in 1998.  The increase from
1997  to  1998  is due to an increase in rental income at  both  Brass
Works  and Locke Mill due to an increase in both the average occupancy
and  the average rental rates.  The decrease from 1996 to 1997 is  due
to  a  decrease in rental income at Henderson due to the sale of Units
partially  offset by an increase at Brass Works due to an increase  in
the average rental rates.

                    Interest income increased from $196,100 in 1996 to
$274,358 in 1997 and decreased to $35,117 in 1998.  The decrease  from
1997  to  1998 is due to a decrease in the average cash balance.   The
increase  from  1996  to 1997, is the result of a  combination  of  an
increase  in interest earned on deposits due to a higher average  cash
balance and an increase in interest earned on purchase money financing
extended  by  CMGP  in  connection with the  sales  of  Units  at  the
Henderson Apartments.

                     Rental operations expense increased from $306,632
in  1996 to $348,325 in 1997 and decreased to $121,027 in 1998.    The
decrease  from 1997 to 1998 is due to a decrease at the Henderson  due
to  fees incurred in 1997 associated with the sale of the notes.   The
increase from 1996 to 1997 is due to an increase at Henderson  due  to
fees  associated  with  the sale of the notes partially  offset  by  a
decrease  in  maintenance expense at Brass Works  and  a  decrease  in
condominium fees at Locke Mill.

                     General and administrative expense decreased from
$128,000 in 1996 to $108,000 in 1997 to $73,500 in 1998.  The decrease
from 1997 to 1998 is due to the sale of the Henderson and a subsequent
reduction  in the administrative fees charged to the Registrant.   The
decrease  from 1996 to 1997 results from the payment in  1996  of  fee
reimbursements to the General Partner for certain services rendered in
1996  and not required in 1997 and a reduction in administrative  fees
resulting from the sale of the Henderson Apartments.

                     Depreciation  and amortization expense  decreased
from $128,337 in 1996 to $90,971 in 1997 and to $90,653 in 1998.   The
decrease  from 1996 to 1997 and 1998 is due to the sale  of  Units  at
Henderson  resulting  in  a  lower balance on  which  depreciation  is
calculated.

                     In  1998, income of $19,000 was recognized at the
Registrant's three properties compared to a loss of $402,000  in  1997
and  income of $111,000 in 1996.  Included in income in 1996 is a gain
of  $74,000, due to the sale of Units at the Henderson Apartments.   A
discussion of property operations/activities follows:

                     In  1998, Registrant recognized income of $29,000
at  The Henderson Apartments compared to a loss of $402,000, including
depreciation  expense  of  $39,000 in  1997  and  income  of  $138,000
including depreciation expense of $39,000 in 1996.  Included in income
in  1996  is a gain of $74,000 related to the sale of Units.  Overall,
exclusive  of the gain resulting from the sale of Units, the Henderson
Apartments  recognized  income of $64,000 in 1996.   The  decrease  in
income  from 1997 (exclusive of the gain) to 1998 is due to a decrease
in interest income due to a decrease in the average cash balance.  The
increase  in  the loss from 1996 to 1997 is mainly the result  of  the
sale  of  the  notes receivable on December 30, 1997 combined  with  a
decrease  in rental income partially offset by a decrease in operating
expenses  and an increase in interest income.  The decrease in  rental
income  and the decrease in operating expenses are due to the sale  of
Units.   The increase in interest income is the result of an  increase
in interest earned on the purchase money financing extended by CMGP in
connection with the sales of Units.

                     In  1998, Registrant recognized income of $18,000
including $48,000 in depreciation expense at the Brass Works, compared
to income of $2,000 including $48,000 depreciation expense in 1997 and
a  loss of $19,000, including $48,000 of depreciation expense in 1996.
The  increase  in income from 1997 to 1998 is due to  an  increase  in
rental income due to an increase in the average occupancy (92% to 98%)
and an increase in the average rental rates.  The decrease in the loss
from 1996 to 1997 is the result of an increase in rental income due to
an  increase  in the average rental rates and decrease in  maintenance
expense due to a decrease in required maintenance.

                    In 1998, Registrant recognized income of $1,000 at
the  Locke  Mill  Plaza  including $26,000  of  depreciation  expense,
compared to a loss of $2,000 including $26,000 of depreciation expense
in  1997  and  a  loss  of $8,000, including $26,000  of  depreciation
expense in 1996.  The increase in income from 1997 to 1998 is  due  to
an  increase  in  rental  income due to an  increase  in  the  average
occupancy  (89% to 93%) and an increase in the average  rental  rates.
The  loss  in  1996  reflects, in part, a one-time special  assessment
charged   by   the  condominium  association  in  1996   for   capital
improvements to be performed in the common areas of the complex.

Item  7A.      Quantitative and Qualitative Disclosures about  Market
               Risk

               Not applicable.

Item 8.        Financial Statements and Supplementary Data

               Registrant is not required to furnish the supplementary
financial information referred to in Item 302 of Regulation S-K.
<PAGE>                                   
                                   
                                   
                                   
                     Independent Auditor's Report



To the Partners of
Diversified Historic Investors IV

We  have  audited  the  accompanying  consolidated  balance  sheet  of
Diversified Historic Investors IV (a Pennsylvania Limited Partnership)
and  subsidiaries  as of December 31, 1998 and 1997  and  the  related
statements  of  operations and changes in partners'  equity  and  cash
flows  for  the years ended December 31, 1998, 1997 and  1996.   These
consolidated  financial  statements  are  the  responsibility  of  the
Partnership's management.  Our responsibility is to express an opinion
on these financial statements based on our audit.

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

In  our  opinion,  the consolidated financial statements  referred  to
above present fairly, in all material respects, the financial position
of Diversified Historic Investors IV as of December 31, 1998 and 1997,
and  the  results  of operations and cash flows for  the  years  ended
December  31,  1998,  1997  and  1996, in  conformity  with  generally
accepted accounting principles.

Our  audits  were made for the purpose of forming an  opinion  on  the
basic  financial  statements taken as a whole.  The Schedule  of  Real
Estate  and Accumulated Depreciation on page 21 is presented  for  the
purposes  of  additional analysis and is not a required  part  of  the
basic  financial statements.  Such information has been  subjected  to
the  auditing  procedures applied in the audit of the basic  financial
statements  and,  in  our opinion, is fairly stated  in  all  material
respects  in  relation to the basic financial statements  taken  as  a
whole.




Gross, Kreger & Passio
Philadelphia, Pennsylvania
February 4, 1999
<PAGE>

                   DIVERSIFIED HISTORIC INVESTORS IV
                        (a limited partnership)
                                   
              INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
                                   
                   AND FINANCIAL STATEMENT SCHEDULES


Consolidated financial statements:                                   Page

     Consolidated Balance Sheets at December 31, 1998 and 1997        11
                                                                      
     Consolidated  Statements of Operations for the Years Ended 
     December  31,  1998, 1997, and 1996                              12
                                                                             
     Consolidated  Statements  of Changes in Partners' Equity 
     for  the  Years  Ended December 31, 1998, 1997, and 1996         13
                                                                             
     Consolidated  Statements of Cash Flows for the Years Ended 
     December  31,  1998, 1997, and 1996                              14
                                                                       
     Notes to consolidated financial statements                     15-19
                                                                             
Financial statement schedules:                                           

     Schedule XI - Real Estate and Accumulated Depreciation           21
                                                                             
     Notes to Schedule XI                                             22



All other schedules are omitted because they are not applicable or the
required information is shown in the consolidated financial statements
or notes thereto.
<PAGE>
             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
                      CONSOLIDATED BALANCE SHEETS
                                   
                      December 31, 1998 and 1997

                                Assets

                                                 1998                  1997
Rental properties at cost:                      ------                ------   
   Land                                      $   74,324            $   74,324
   Buildings and improvements                 2,246,555             2,246,555
   Furniture and fixtures                        26,054                23,841
                                              ---------             --------- 
                                              2,346,933             2,344,720
   Less - accumulated depreciation           (  952,232)           (  861,579)
                                              ---------             ---------
                                              1,394,701             1,483,141
                                                                       
Cash and cash equivalents                       603,499             3,102,030
Restricted cash                                  23,673                56,685
Other assets                                      7,477               160,272
                                              ---------             ---------  
               Total                         $2,029,350            $4,802,128
                                              =========             =========
                   Liabilities and Partners' Equity
                                   
Liabilities:                                                     
   Accounts payable:                                                    
        Trade                                $   30,876            $  213,002
   Other liabilities                                821                   745
   Tenant security deposits                      10,465                11,655
                                              ---------             --------- 
               Total liabilities                 42,162               225,402
                                              ---------             ---------
Partners' equity                              1,987,188             4,576,726
                                              ---------             ---------
               Total                         $2,029,350            $4,802,128
                                              =========             =========

The accompanying notes are an integral part of these financial statements.
<PAGE>
             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                                   
         For the Years Ended December 31, 1998, 1997 and 1996



                                             1998          1997          1996
                                            ------        ------        ------ 
Revenues:                                                                  
   Rental income                         $ 190,058     $ 180,312     $ 267,148
   Gain on sale of units                         0             0        74,551
   Interest income                          35,117       274,358       196,100
                                           -------       -------       -------
               Total revenues              225,175       454,670       537,799
                                           -------       -------       -------
Costs and expenses:                  
   Rental operations                       121,027       348,325       306,632
   General and administrative               73,500       108,000       128,000
   Loss on sale of notes                         0       448,957             0
   Depreciation and amortization            90,653        90,971       128,337
                                           -------       -------       -------
               Total costs and expenses    285,180       996,253       562,969
                                           -------       -------       -------
Net loss                                ($  60,005)   ($ 541,583)    ($ 25,170)
                                           =======       =======       =======  

Net loss per limited partnership unit:  ($    7.17)   ($   64.71)    ($   3.01)
                                           =======       =======       =======  

The accompanying notes are an integral part of these financial statements.
<PAGE>

             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
        CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
                                   
         For the Years Ended December 31, 1998, 1997 and 1996


                                        Dover Historic   Limited
                                         Advisors III   Partners      Total
                                              (1)         (2)

Percentage participation in profit or loss     1%         99%         100%
                                                                    
Balance at December 31, 1995               ($112,884)  $5,808,743  $5,695,859
Net loss                                        (252)     (24,918)    (25,170)
Distribution to partners                     (27,619)    (248,571)   (276,190)
                                             -------    ---------   ---------
Balance at December 31, 1996                (140,755)   5,535,254   5,394,499
Net loss                                      (5,416)    (536,167)   (541,583)
Distribution to partners                     (27,619)    (248,571)   (276,190)
                                             -------    ---------   ---------
Balance at December 31, 1997                (173,790)   4,750,516   4,576,726
Net loss                                        (600)     (59,405)    (60,005)
Distribution to partners                   (  25,295)  (2,504,238) (2,529,533)
                                             -------    ---------   ---------
Balance at December 31, 1998               ($199,685)  $2,186,873  $1,987,188
                                             =======    =========   =========


 (1)   General Partner

 (2)   8,285.7 limited partnership units outstanding at December  31,
       1998, 1997, and 1996.

The accompanying notes are an integral part of these financial statements.
<PAGE>

             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   
         For the Years Ended December 31, 1998, 1997 and 1996

                                                     1998       1997       1996
                                                                      
Cash flows from operating activities:                                    
   Net loss                                     ($   60,005)($ 541,583)($25,170)
   Adjustments to reconcile net loss to net cash  
provided by (used in) operating activities:
Gain on sale of units                                     0          0  (74,551)
Depreciation and amortization                        90,653     90,971  128,337
Changes in assets and liabilities:                                       
   Decrease in restricted cash                       33,012     50,751  259,088
   Decrease (increase) in other assets              152,794   (157,705)     755
   (Decrease) increase in accounts payable - trade (182,126)    57,539  (89,521)
   Decrease in accounts payable - related parties         0        (39) (59,686)
   Decrease in deferred income                            0    (13,282) (68,495)
   Increase (decrease) in other liabilities              77       (651)   1,396
   (Decrease) increase in tenant security deposits   (1,190)     1,780   (3,208)
            Net cash provided by (used in)        ---------  ---------  -------
            operating activities:                    33,215   (512,219)  68,945
Cash flows from investing activities:             ---------  ---------  -------
   Capital expenditures                              (2,213)    (3,991)(148,921)
   Decrease in notes receivable                           0  3,449,018  580,939
   Proceeds from sale of units                            0          0 (125,872)
            Net cash (used in) provided by        ---------  ---------  -------
            investing activities                     (2,213) 3,445,027  306,146
Cash flows from financing activities:             ---------  ---------  ------- 
   Distribution to partners                      (2,529,533)  (276,190)(276,190)
                                                  ---------  ---------  -------
      Net cash used in financing activities      (2,529,533)  (276,190)(276,190)
                                                                
(Decrease) increase in cash and cash equivalents (2,498,531) 2,656,618   98,901
Cash and cash equivalents at beginning of year    3,102,030    445,412  346,511
                                                  ---------  ---------  -------
Cash and cash equivalents at end of year         $  603,499 $3,102,030 $445,412
                                                  =========  =========  =======
Supplemental Schedule of Non-Cash Investing            
Activities:
  Net assets transferred                                  0        0 $2,227,249
  Notes receivable received from the sale of Units        0        0  1,930,501

The accompanying notes are an integral part of these financial statements.
<PAGE>

             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - ORGANIZATION

Diversified  Historic Investors IV (the "Partnership") was  formed  in
January  1987, with Dover Historic Advisors III as the General Partner
and  DHP,  Inc., (formerly Dover Historic Properties,  Inc.,)  as  the
limited  partner.  Upon the admission of additional limited  partners,
the initial limited partner withdrew.

The  Partnership was formed to acquire, rehabilitate, and manage  real
properties which are certified historic structures as defined  in  the
Internal  Revenue  Code  (the  "Code"), or  which  were  eligible  for
designation  as  such, utilizing the net proceeds  from  the  sale  of
limited  partnership  units.  Any rehabilitations  undertaken  by  the
Partnership  were  done  with  a view to  obtaining  certification  of
expenditures  therefor as "qualified rehabilitation  expenditures"  as
defined in the Code.

NOTE B - SIGNIFICANT ACCOUNTING POLICIES

A  summary  of  the  significant accounting policies  applied  in  the
preparation  of  the  accompanying consolidated  financial  statements
follows:

1.     Principles of Consolidation

The  accompanying consolidated financial statements of the Partnership
include the accounts of one subsidiary partnership (the "Venture"), in
which  the  Partnership has a controlling interest,  with  appropriate
elimination  of  inter-partnership transactions and  balances.   These
financial  statements  reflect  all adjustments  (consisting  only  of
normal   recurring  adjustments)  which,  in  the   opinion   of   the
Partnership's General Partner, are necessary for a fair  statement  of
the results for the year.

2.     Costs of Issuance

Costs  incurred  in connection with the offering and sale  of  limited
partnership units were charged against partners' equity as incurred.

3.     Depreciation

Depreciation  is  computed  using the straight-line  method  over  the
estimated useful lives of the assets.  Buildings and improvements  are
depreciated over 25 years and furniture and fixtures over five years.

4.     Net Loss Per Limited Partnership Unit

The  net  income (loss) per limited partnership unit is based  on  the
weighted  average  number  of  limited partnership  units  outstanding
during the period (8,285.7 in 1998, 1997, and 1996).

5.     Income Taxes

Federal and state income taxes are payable by the individual partners;
therefore, no provision or liability for income taxes is reflected  in
the financial statements.

6.     Cash and Cash Equivalents

The Partnership considers all highly liquid investments purchased with
a maturity of less than three months to be cash equivalents.

7.     Concentration of Credit Risk

Financial  instruments which potentially subject  the  Partnership  to
concentration  of  credit risk consist principally of  cash  and  cash
equivalents.  The Partnership maintains its cash and cash  equivalents
in  financial  institutions insured by the Federal  Deposit  Insurance
Corporation  up  to  $100,000  per company.   At  December  31,  1998,
uninsured funds held at one institution approximate $569,000.

8.     Restricted Cash

Restricted  cash  includes amounts held for tenant security  deposits,
real estate tax reserves and other cash restricted as to use.

9.     Revenue Recognition

Revenues  are recognized when rental payments are due on  a  straight-
line  basis.   Rental payments received in advance are deferred  until
earned.

10.    Rental Properties

Rental  properties are stated at cost.  A provision for impairment  of
value is recorded when a decline in value of property is determined to
be  other  than temporary as a result of one or more of the following:
(1)  a  property  is  offered for sale at a price  below  its  current
carrying  value, (2) a property has significant balloon  payments  due
within the foreseeable future for which the Partnership does not  have
the  resources  to meet, and anticipates it will be unable  to  obtain
replacement financing or debt modification sufficient to allow  it  to
continue to hold the property over a reasonable period of time, (3)  a
property has been, and is expected to continue, generating significant
operating  deficits  and  the Partnership is unable  or  unwilling  to
sustain such deficit results of operations, and has been unable to, or
anticipates it will be unable to, obtain debt modification,  financing
or refinancing sufficient to allow it to continue to hold the property
for  a  reasonable  period  of time or, (4)  a  property's  value  has
declined  based on management's expectations with respect to projected
future operational cash flows and prevailing economic conditions.   An
impairment  loss is indicated when the undiscounted sum  of  estimated
future  cash flows from an asset, including estimated sales  proceeds,
and  assuming a reasonable period of ownership up to 5 years, is  less
than  the  carrying  amount  of the asset.   The  impairment  loss  is
measured  as the difference between the estimated fair value  and  the
carrying   amount  of  the  asset.  In  the  absence  of   the   above
circumstances,  properties and improvements are stated  at  cost.   An
analysis is done on an annual basis at December 31.

11.    Notes Receivable

The notes receivable are mortgage notes arising from seller - provided
financing  on  the Units sold at one of the Partnership's  properties.
The  notes  were  collateralized by the  condominium  units  and  bore
interest  at rates ranging from 6 1/2% to 8 1/4%.  The notes consisted
of  two  types,  a 30-year fixed rate mortgage and a 7/23  loan.   The
interest  rate  on the 7/23 loan during the initial  7-year  term  was
fixed.  Interest after the 7th anniversary of the loan was to be reset
at 250 basis points in excess of the 10-year Treasury Note as reported
in  the  Wall  Street  Journal for the next business  day  immediately
preceding  such  7th anniversary, rounded upward to the  next  highest
1/8%  of  1%,  with a cap of 13.5%.  Interest and principal  were  due
monthly   and  all  principal  payments  were  based  on   a   30-year
amortization  schedule.   Interest  income  has  been  recognized   as
interest  became due.  On December 30, 1997, the mortgage  loans  were
sold  at an average price of 85.5% of the full value of the portfolio.
Included  in operations in 1997 is a loss of $448,957 related  to  the
sale of the loans.

12.    Use of Estimates

The  preparation  of  the  financial  statements  in  conformity  with
generally accepted accounting principles requires management  to  make
estimates  and  assumptions that affect the amounts  reported  in  the
financial  statements  and accompanying notes.  Actual  results  could
differ from those estimates.

NOTE C - PARTNERSHIP AGREEMENT

The significant terms of the amended and restated Agreement of Limited
Partnership  (the  "Agreement"),  as  they  relate  to  the  financial
statements, follow:

The  Agreement provides that beginning with the date of the  admission
of  subscribers  as  limited  partners, all  distributable  cash  from
operations  (as  defined)  will  be distributed  90%  to  the  limited
partners and 10% to the General Partner.

All distributable cash from sales or dispositions (as defined) will be
distributed  to  the  limited partners up to  their  original  capital
contributions  plus an amount equal to six percent of  their  original
capital contributions per annum on a cumulative basis, less the sum of
all  prior  distributions to them; thereafter, after  receipt  by  the
General  Partner  or  its affiliates of any accrued  but  unpaid  real
estate   brokerage  commissions,  the  distributable  cash   will   be
distributed  15%  to  the  General Partner  and  85%  to  the  limited
partners.

Net income or loss from operations of the Partnership is allocated one
percent to the General Partner and 99% to the limited partners.

NOTE D - ACQUISITIONS

The  Partnership  acquired two properties and one general  partnership
interest  in  the Venture during the period from May 1987 to  November
1988, as discussed below.

In  May 1987, the Partnership purchased a three-story building located
in  Philadelphia, Pennsylvania consisting of 12 apartment units.   The
cost  to  acquire  and  rehabilitate this property  was  approximately
$1,200,000.

In  July  1987,  the  Partnership was admitted,  with  a  95%  general
partnership interest, to a Pennsylvania general partnership which owns
a  building  located  in  New  Orleans,  Louisiana  consisting  of  61
apartment units, for cash contributions of $4,620,000.  As of December
31, 1996, all the units were sold.

In  November  1988,  the Partnership purchased a building  located  in
Concord,  North  Carolina,  consisting of 10  condominium  units,  for
$665,000.

NOTE E - TRANSACTIONS WITH RELATED PARTIES

The following is a summary of transactions with related parties of the
Partnership and the General Partner:

       Historic  Restoration,  Inc.  ("HRI"),  the  Partnership's  co-
       general  partner in Commerce Mall General Partnership ("CMGP"),
       was  paid  a 10% conversion fee (the "Conversion Fee")  on  the
       sale of any Unit at or above the agreed-upon sales price.  Such
       fee  was  payable upon the closing of the sale  of  each  Unit,
       provided that the Conversion Fee from the sale of the first  30
       Units was deferred and paid as follows:

                    (i)   $125,000 at the closing of the 31st unit

                     (ii)  the remaining portion ("the Remainder")  at
               the  rate of 5% of the Remainder at the closing of  the
               sale of each of the 42nd through 61st Units

       As  of  December  31,  1996,  all  Conversion  fees  (including
       deferred fees) had been paid to HRI.  In addition, HRI was paid
       a selling commission equal to 3.5% of the selling price of each
       Unit.  Commissions paid to HRI during 1996 were $88,452.

NOTE F - SALE OF UNITS AT HENDERSON

During  1994,  CMGP entered into agreements converting  the  Henderson
apartments  into condominiums and began offering the Units  for  sale.
The  Units  were marketed and sold by HRI.  The asking prices  of  the
Units   ranged   from   $72,000  to  $135,000,  depending   on   size,
configuration and location within the building.  Funds were  necessary
during  the  selling  period for improvements and  repairs  to  common
areas,  individual unit upgrades, marketing, selling costs, and  fees.
During  1996,  these  expenses were approximately  $146,000  and  were
funded by sales proceeds.

CMGP provided financing for a large percentage of the units sold.  All
loans  required  a minimum 10% down payment, and all  purchasers  were
qualified  by  an independent mortgage brokerage company,  using  FNMA
guidelines.  These notes were sold in 1997 (see Note B, paragraph  11,
Notes  Receivable).  As of December 31, 1996, all of the 61 Units  had
been  sold.  The Units sold ranged in price from $71,250 to  $127,065.
Of  the Units sold, 46 of the 61 sellers opted for the seller provided
financing.  The Partnership recognized a gain of $74,551 in 1996 based
on  the  selling  price less the original cost of the  unit  plus  any
improvements, selling costs and fees.

NOTE G - INCOME TAX BASIS RECONCILIATION

Certain  items  enter  into  the  determination  of  the  results   of
operations in different time periods for financial reporting  ("book")
purposes and for income tax ("tax") purposes.  A reconciliation of net
loss and partners' equity follows:

                                            For the Years Ended December 31,
                                            1998           1997          1996
                                           -----          ------        ------
Net (loss) income - book            ($    60,005)    ($  541,583)  ($   25,170)
Excess of book over tax                                                       
 depreciation                             20,250          22,630         9,209
Gain on sale of units                          0         402,439        (8,648)
Timing differences                             0          (1,109)       31,086
Minority interest (tax only)                   0              18         9,349
                                       ---------       ---------     ---------
Net (loss) income - tax              ($   39,755)    ($  117,605)   $   15,826
                                       =========       =========     =========
                                           For the Years Ended December 31,
                                          1998            1997          1996
                                         ------          ------        ------
Partners' equity - book               $1,987,188      $4,576,726    $5,394,499
Costs of issuance                      1,077,141       1,077,141     1,077,141
Cumulative tax over book loss            211,538         191,295      (232,683)
                                       ---------       ---------     ---------
Partners' equity - tax                $3,275,867      $5,845,162    $6,238,957
                                       =========       =========     =========

<PAGE>
                       SUPPLEMENTAL INFORMATION

<PAGE>
                           DIVERSIFIED HISTORIC INVESTORS IV
                                (a limited partnership)
                                                                          
                SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                    DECEMBER 31, 1998
                                                
                                         Gross Amount at       
                  Initial Cost           which Carried at       
                  to Partnership (b)     December 31, 1998
                                                                            
                          Buildings          Buildings                      
                             and                and                 Accumu. 
Description (a)    Land  Improvements  Land Improvements  Total     Depr.  
                                                           (c)(d)   (d)(e)  
                                                                            
12 apartment                                                                
units in
Philadelphia, PA  $54,000 $1,209,858 $54,000 $1,398,079 $1,452,079 $595,122 
                                                                             
10 apartment                                                                
units in North
Concord,NC         20,324    692,522  20,324    874,530    894,854  357,110
                   ------  ---------  ------  ---------  ---------  -------
                  $74,324 $1,902,380 $74,324 $2,272,609 $2,346,933 $952,232
                   ======  =========  ======  =========  =========  ======= 
<PAGE>
                       Date of          Date
Description (a)     Construction (a)  Acquired

12 apartment 
units in 
Philadelphia, PA        1988           5/22/87  
 
10 apartment
units in North
Concord, NC             1988           11/30/88


<PAGE>
             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
                         NOTES TO SCHEDULE XI
                                   
                           December 31, 1998

(A)    Each  property is a certified historic structure as defined  in
       the  Internal Revenue Code of 1986.  The "date of construction"
       refers   to   the   period  in  which   the   properties   were
       rehabilitated.

(B)    Includes development/rehabilitation costs incurred pursuant  to
       development  agreements entered into when the  properties  were
       acquired.

(C)    The  aggregate cost of real estate owned at December 31,  1998,
       for  Federal  income tax purposes is approximately  $1,895,911.
       The  depreciable basis of buildings and improvements is further
       reduced  for  Federal  income  tax  purposes  by  the  historic
       rehabilitation credit obtained.

(D)    Reconciliation of land, buildings and improvements:

                                               1998         1997         1996
Balance at beginning of year               $2,344,720   $2,340,729   $4,565,527
Additions during the year:                                          
   Improvements                                 2,213        3,991      148,921
Deductions during the year:                                                  
   Sale of units                                    0            0   (2,373,719)
                                            ---------    ---------    ---------
Balance at end of year                     $2,346,933   $2,344,720   $2,340,729
                                            =========    =========    =========
Reconciliation of accumulated depreciation:

                                               1998         1997         1996
Balance at beginning of year               $  861,579   $  770,607   $1,285,912
Depreciation expense for the year              90,653       90,972      128,337
Sale of units                                       0            0     (643,642)
                                            ---------    ---------    ---------
Balance at end of year                     $  952,232   $  861,579   $  770,607
                                            =========    =========    =========

(E)    See  Note  B  to  the  consolidated  financial  statements  for
       depreciation methods and lives.



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

               None.

                               PART III

Item 10.       Directors and Executive Officers of Registrant

                a.    Identification of Directors - Registrant has  no
directors.

               b.   Identification of Executive Officers

                     The  General Partner of the Registrant  is  Dover
Historic  Advisors III (DoHA-III), a Pennsylvania general partnership.
The partners of DoHA-III are as follows:

Name              Age    Position              Term of Office    Period Served
                                                                         
SWDHA, Inc.       --     Partner in DoHA-III   No fixed term     Since May 1997
                                                                           
EPK, Inc.         --     Partner in DoHA-III   No fixed term     Since May 1997

                      For  further  description  of  DHP,  Inc.,   see
paragraph  e.  of this Item.  There is no arrangement or understanding
between  either  person named above and any other person  pursuant  to
which any person was or is to be selected as an officer.

                c.    Identification of Certain Significant Employees.
Registrant  has  no  employees.   Its administrative  and  operational
functions  are  carried out by a property management  and  partnership
administration firm.

                 d.     Family  Relationships.   There  is  no  family
relationship between or among the executive officers and/or any person
nominated or chosen by Registrant to become an executive officer.

                e.    Business  Experience.   DoHA-III  is  a  general
partnership  formed in 1987.  The partners of DoHA-III are  EPK,  Inc.
and  SWDHA,  Inc.  EPK, Inc., is managing partner of DoHA III  and  is
thus responsible for management and control of DoHA III, which in turn
is  responsible  for the management and control of the Registrant  and
has   general   responsibility  and  authority  for   conducting   its
operations.

                     On  May  13,  1997, SWDHA, Inc.  replaced  Gerald
Katzoff  and  EPK,  Inc. replaced DHP, Inc. as partners  of  DoHA-III.
Spencer Wertheimer, the President of SWDHA, Inc., is an attorney  with
extensive experience in real estate activities ventures.

                    EPK, Inc. is a Delaware corporation formed for the
purpose of managing properties or interests therein.  EPK, Inc.  is  a
wholly-owned subsidiary of D, LTD, an entity formed in 1985 to act  as
the   holding  company  for  various  corporations  engaged   in   the
development  and management of historically certified  properties  and
conventional  real  estate as well as a provider  of  financial  (non-
banking) services.  EPK, Inc. is an affiliate of DoHA-III.

                     The  officers  and directors  of  EPK,  Inc.  are
described below.

                     Spencer Wertheimer was appointed on May 13,  1997
as President, Treasurer and Sole Director of EPK, Inc.  Mr. Wertheimer
is  an  attorney  with extensive experience in real estate  activities
ventures.

                     Donna M. Zanghi (age 41) was appointed on May 13,
1997  as  Vice  President  and Secretary  of  EPK,  Inc.   Ms.  Zanghi
previously  served as Secretary and Treasurer of DHP, Inc. since  June
14, 1993 and as a Director and Secretary/Treasurer of D, LTD.  She was
associated with DHP, Inc. and its affiliates since 1984 except for the
period from December 1986 to June 1989 and the period from November 1,
1992 to June 14, 1993.

                    Michele F. Rudoi (age 33) was appointed on May 13,
1997  as Assistant Secretary of EPK, Inc.  Ms. Rudoi previously served
as Assistant Secretary and Director of both D, LTD and DHP, Inc. since
January 27, 1993.

Item 11.       Executive Compensation

                a.    Cash Compensation - During 1998, Registrant paid
no  cash  compensation to DoHA-III, any partner therein or any  person
named in paragraph c. of Item 10.

               b.   Compensation Pursuant to Plans - Registrant has no
plan  pursuant  to  which compensation was paid or distributed  during
1998, or is proposed to be paid or distributed in the future, to DoHA-
III,  any partner therein, or any person named in paragraph c. of Item
10 of this report.

                c.   Other Compensation - No compensation not referred
to  in  paragraph  a.  or  paragraph b.  of  this  Item  was  paid  or
distributed  during  1998  to DoHA-III, any partner  therein,  or  any
person named in paragraph c. of Item 10.

                d.    Compensation  of Directors - Registrant  has  no
directors.

                e.    Termination of Employment and Change of  Control
Arrangement - Registrant has no compensatory plan or arrangement, with
respect  to  any  individual, which results or will  result  from  the
resignation  or  retirement of any individual, or any  termination  of
such  individual's  employment with Registrant or  from  a  change  in
control   of   Registrant   or   a   change   in   such   individual's
responsibilities following such a change in control.

Item  12.        Security Ownership of Certain Beneficial  Owners  and
Management

                a.   Security Ownership of Certain Beneficial Owners -
No  person is known to Registrant to be the beneficial owner  of  more
than five percent of the issued and outstanding Units.

                b.    Security  Ownership of Management  -  No  equity
security  of Registrant are beneficially owned by any person named  in
paragraph c. of Item 10.

                c.   Changes in Control - Registrant does not know  of
any  arrangement,  the  operation of which may at  a  subsequent  date
result in a change in control of Registrant.

Item 13.       Certain Relationships and Related Transactions

               Pursuant to Registrant's Amended and Restated Agreement
of  Limited  Partnership, DoHA-III is entitled to 10% of  Registrant's
distributable cash from operations in each year.  The amount allocable
to DoHA-III for 1998, 1997 and 1996 was $252,953, $27,619 and $27,619,
respectively.

               a.   Certain Business Relationships - Registrant has no
directors.

                b.    Indebtedness  of Management  -  No  employee  of
Registrant, Registrant's general partner (or any employee thereof), or
any  affiliate of any such person, is or has at any time been indebted
to Registrant.
<PAGE>

                                PART IV


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

               1.  Financial Statements:

                   a. Consolidated Balance Sheets at December 31, 1998 and 1997.

                   b. Consolidated Statements of Operations for the Years Ended
                      December 31, 1998, 1997 and 1996.

                   c. Consolidated Statements  of  Changes in Partners'  Equity
                      for the Years Ended December  31,  1998, 1997 and 1996.

                   d. Consolidated Statements of Cash Flows for the Years Ended
                      December 31, 1998, 1997 and 1996.

                   e. Notes to consolidated financial statements.

               2.  Financial statement schedules:

                   a. Schedule  XI  -  Real Estate and Accumulated Depreciation.

                   b. Notes to Schedule XI.

               3.  Exhibits:

                   (a) Exhibit Number     Document

                             3            Registrant's Amended and Restated
                                          Certificate of Limited Partnership and
                                          Agreement of Limited Partnership,
                                          previously filed as part of Amendment
                                          No. 1 of Registrant's Registration
                                          Statement on Form S-11, are
                                          incorporated herein by reference.
                                                       
                           21             Subsidiaries of the Registrant are
                                          listed in Item 2. Properties of this
                                          Form 10-K.

                    (b) Reports on Form 8-K:

                        No reports  were filed on Form 8-K  during  the
                        quarter ended December 31, 1998.

                    (c) Exhibits:

                        See Item 14(A)(3) above.
<PAGE>

                              SIGNATURES

        Pursuant  to  the requirement of Section 13 or  15(d)  of  the
Securities  Exchange  Act of 1934, Registrant  has  duly  caused  this
report  to be signed on its behalf by the undersigned, thereunto  duly
authorized.

Date: April 26, 1999        DIVERSIFIED HISTORIC INVESTORS IV Income Fund
      --------------
                            By: Dover Historic Advisors III, General Partner
                                             
                                By:   EPK, Inc.,  General Partner
                                             
                                      By: /s/  Spencer Wertheimer
                                          -----------------------
                                          SPENCER WERTHEIMER
                                          President
                                             
                                      By: /s/ Michele F. Rudoi
                                          --------------------
                                          MICHELE F. RUDOI,
                                          Assistant Secretary

        Pursuant to the requirements of the Securities Exchange Act of
1934,  this  report has been signed below by the following persons  on
behalf of Registrant and in the capacities and on the dates indicated.

 Signature                          Capacity                Date

DOVER HISTORIC ADVISORS III       General Partner

By:  EPK, Inc., General Partner

     By: /s/ Spencer Wertheimer                        April 26, 1999
         ----------------------                        --------------
         SPENCER WERTHEIMER,
         President

    By:  /s/ Michele F. Rudoi                          April 26, 1999
         --------------------                          --------------
         MICHELE F. RUDOI,
         Assistant Secretary