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, 1996
                          --------------------------------------------
[   ]  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                 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.)

       SUITE 500,  1521 LOCUST STREET,  PHILADELPHIA,  PA   19102
----------------------------------------------------------------------
(Address of principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code  (215) 735-5001

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 the Pennsylvania Uniform
Limited  Partnership  Act.  As of December 31,  1996,  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  are
collateralized  by  the condominium units and bear interest  at  rates
ranging from 6 1/2% to 8 1/4%.  The loans consist 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 will 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 are due monthly and all  principal
payments are based on a 30-year amortization schedule.  As of December
31,  1996,  all  61  Units have 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.

               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  begin to  increase.   At  that  time,  the
Registrant  will  re-evaluate its investment  strategy  regarding  the
properties.

                      As   of  December  31,  1996,  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, 1996, 19 of the apartment units were  under
lease  at  monthly rental rates ranging from $475 to $765.  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, 1996 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  sf)  funded by its equity  contribution.   The
property  is  managed  by  BCMI.  At December  31,  1996,  10  of  the
apartment units were under lease (83%) with monthly rents ranging from
$595 to $765.

                     All  leases are renewable, one-year leases.   The
occupancy for the previous four years was 92% for 1995, 88% for  1994,
78%  for  1993  and 73% for 1992.  The monthly rental range  has  been
approximately  the same since 1992.  For tax purposes,  this  property
has  a  federal tax basis of $1,198,623 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, 1995, 9 of the units were under lease (90%) with  monthly
rates ranging from $475 to $540.

                     All  leases are renewable, one-year leases.   The
occupancy for the previous four years was 90% for 1995, 98% for  1994,
100%  for  1993 and 100% for 1992.  The monthly rental range has  been
approximately  the same since 1992.  For tax purposes,  this  property
has  a  federal  tax  basis of $691,884 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 73 units were  sold
or exchanged in 1996.

                b.    As  of December 31, 1996, there were 989  record
holders of Units.

                c.   In 1996 and 1995 Registrant made distributions in
the  amounts of $276,190 and $291,206, respectively, out of  available
cash flow.

Item 6.        Selected Financial Data

                The following selected financial data are for the five
years ended December 31, 1996.  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.

                             1996      1995       1994       1993       1992
                                      
 Rental income          $  267,148 $  393,751 $  607,399 $  692,195    686,601
 Interest income           196,100    125,505     11,907      6,474      3,787
 Net (loss) earnings      (119,070)   528,832    (85,946)   (25,170)   (71,064)
 Net (loss) earnings    
 per Unit                    (3.01)    (13.03)     63.18      (7.72)    (10.27)
 Total assets (net of    5,574,564  6,095,438  6,479,965  5,637,971  5,763,685
 depreciation and
 amortization)
 Dividends (distribu-      276,190    291,206    345,236          0          0
 tions)    

Note:  See Part II, Item 7.2 Results of Operations for a discussion of
factors  which materially affect the comparability of the  information
reflected in the above table.

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

               (1)  Liquidity

                      At  December  31,  1996,  Registrant  had  total
unrestricted  cash of $445,412.  This balance is comprised  of  $5,213
held by the Registrant and $440,199 which is held by the properties in
which  the  Registrant  holds  a majority  interest.   The  Registrant
expects  that the $445,412 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
$248,571 and $269,285 to the limited partners in August 1996 and March
1995,  respectively.  The Registrant is not aware  of  any  additional
sources of liquidity.

                    As of December 31, 1996, Registrant had restricted
cash  of  $107,436  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  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 1995 and 1996 were $49,499 and $88,452, respectively.

               (2)  Capital Resources

                      Due   to  the  recent  rehabilitations  of   the
properties,  any capital expenditures needed are generally replacement
items  and  are  funded  out  of cash from  operation  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 and 1995, these expenses were approximately $146,000  and
$416,000, respectively, and were funded by sales proceeds.  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

                    Results of Operations

                     During  1996, Registrant incurred a net  loss  of
$25,170  ($3.01 per limited partnership unit) compared to  a  loss  of
$119,070  ($13.03 per limited partnership unit) in 1995 and income  of
$528,832  ($63.18 per limited partnership unit) in 1994.  Included  in
the  loss  for  1996  and  1995  are gains  of  $74,551  and  $33,305,
respectively,  due  to the sale of Units at the Henderson  Apartments.
Included  in income in 1994 is a gain of $652,000 due to the  sale  of
Units.   In  August  1996  and March 1995, the Registrant  distributed
approximately  $291,000  and $276,000, respectively,  to  the  limited
partners and General Partner.

                     Rental income decreased from $607,399 in 1994  to
$393,751 in 1995 to $267,148 in 1996.  The decrease from 1995 to  1996
is  due to a decrease in rental income at Henderson due to the sale of
Units partially offset by an increase in the average occupancy at both
Locke  Mill  and Brass Works.  The decrease from 1994 to 1995  is  the
result of a decrease in rental income at Henderson due to the sale  of
Units  partially offset by an increase in rental income at one of  the
other  properties due to an increase in average occupancy.  There  was
also a decrease in average occupancy at the Henderson in the units not
sold, as they were being prepared for sale.

                     Interest income increased from $11,907 in 1994 to
$125,505 in 1995 to $196,100 in 1996.  The increase from 1994 to  1995
and  1995  to  1996, 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 decreased from $403,438
in  1994  to $385,284 in 1995 to $306,632 in 1996.  The decrease  from
1995 to 1996 is the result of an overall decrease at Henderson due  to
the  sale  of  units partially offset by an increase  in  commissions,
condominium fees and wages and salaries at Locke Mill and an  increase
in  legal  fees at Henderson.  The decrease from 1994 to 1995  is  the
result  of an overall decrease in operating expenses partially  offset
by  an increase in marketing expenses due to the sale of units and  an
increase in condominium fees at Henderson.  In addition, there was  an
increase  in  leasing commissions expense and wages  and  salaries  at
Locke Mill.

                     General and administrative expense increased from
$108,000 in 1994 and 1995 to $128,000 in 1996.  The increase from 1995
to  1996  is due to fees paid in 1996 to reimburse the General Partner
for certain services rendered.  None were paid in 1995 or 1994.

                     Depreciation  and amortization expense  decreased
from  $231,677 in 1994 to $178,347 in 1995 to $128,337 in  1996.   The
decrease  from  1994 to 1995 and 1995 to 1996 is due to  the  sale  of
Units  at Henderson resulting in a lower balance on which depreciation
is calculated.

                     In 1996, income of $111,000 was recognized at the
Registrant's three properties compared to income of $3,000 in 1995 and
income of $666,000 in 1994.  Included in income in 1996, 1995 and 1994
is  a gain of $74,000, $33,000 and $652,000, respectively, due to  the
sale   of   Units  at  the  Henderson.   A  discussion   of   property
operations/activities follows:

                     In 1996, Registrant recognized income of $138,000
at  The Henderson Riverfront Apartments including depreciation expense
of  $39,000  compared  to  income of $24,000,  including  depreciation
expense   of  $89,000  in  1995  and  income  of  $689,000   including
depreciation expense of $142,000 in 1994.  Included in income in 1996,
1995   and   1994,  is  a  gain  of  $74,000,  $33,000  and  $652,000,
respectively, 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 compared to a loss of  $9,000  in
1995 and income of $37,000 in 1994.  The increased income from 1995 to
1996  is due to an increase in interest income and an overall decrease
in  operating expenses partially offset by a decrease in rental income
and an increase in legal fees.  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.  The
decrease  in rental income and operating expenses and the increase  in
legal  fees is due to the sale of Units.  The decrease in income  from
1994 to 1995 resulted from a decrease in rental income and an increase
in  marketing expenses related to the sale of Units and an increase in
condominium  fees  partially  offset by  a  decrease  in  the  related
operating expenses due to the sale of Units.

                     In  1996,  Registrant incurred a loss of  $19,000
including $48,000 in depreciation expense at the Brass Works, compared
to  a  loss of $22,000 including $48,000 depreciation expense in  1995
and  a  loss of $30,000, including $48,000 of depreciation expense  in
1994.  The decrease in the loss from 1995 to 1996 is the result of  an
increase  in  the average occupancy (72% to 95%).  The decreased  loss
from  1994 to 1995 relates to an increase in rental income due  to  an
average higher occupancy at the property.

                     In 1996, Registrant incurred a loss of $8,000  at
Locke  Mill Plaza including $26,000 of depreciation expense,  compared
to  income of $1,000 including $26,000 of depreciation expense in 1995
and  income  of $7,000, including $26,000 of depreciation  expense  in
1994.   The  increase  in the loss from 1995 to  1996  is  due  to  an
increase  in  leasing  commissions, condominium  fees  and  wages  and
salaries   partially  offset  by  an  increase   in   rental   income.
Commissions  and  wages  and  salaries  increased  due  to  additional
staffing  needed  to  maintain the property and the  occupancy  levels
while  condominium fees increased due to a special assessment  charged
by   the  condominium  association  for  capital  improvements  to  be
performed in the common areas of the complex.  Rental income increased
due  to an increase in the average monthly rental rates.  The decrease
in  income  from 1994 to 1995 is the result of an increase in  leasing
commission expense and wages and salaries.  The increases are  due  to
additional staffing needed to maintain the property and the  occupancy
levels.

                    Effective January 1, 1995, the Partnership adopted
the provisions of Statement of Financial Accounting Standards ("SFAS")
No. 121, "Accounting for the Impairment of Long - Lived Assets and for
Long  -  Lived  Assets to be Disposed Of."  There  was  no  cumulative
effect of the adoption of SFAS No. 121.

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  sheets  of
Diversified Historic Investors IV (a Pennsylvania Limited Partnership)
and  subsidiaries  as of December 31, 1996 and 1995  and  the  related
consolidated statements of operations, changes in partners' equity and
cash  flows  for  the years ended December 31, 1996,  1995  and  1994.
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 audits.

We conducted our audits in accordance with generally accepted auditing
standards.   Those  standards require that we  plan  and  perform  the
audits  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  audits  provide   a
reasonable basis for our opinion.

In  our opinion, the consolidated financial statements referred to  in
the  first  paragraph  present fairly, in all material  respects,  the
financial position of Diversified Historic Investors IV as of December
31,  1996 and 1995, and the results of their operations and their cash
flows  for  the  years  ended December 31, 1996,  1995  and  1994,  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 22 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, L.L.C.
Philadelphia, Pennsylvania
February 25, 1997
<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, 1996 and 1995        11
                                                                 
     Consolidated  Statements of Operations for the Years Ended      
       December  31,  1996, 1995 and 1994                             12
                                                              
     Consolidated  Statements  of Changes in Partners' Equity
       for  the  Years  Ended December 31, 1996, 1995, and 1994       13
                                                                 
     Consolidated  Statements of Cash Flows for the Years Ended 
       December  31,  1996, 1995, and 1994                            14
                                                  
     Notes to consolidated financial statements                      15-20
                                                              
Financial statement schedules:                                

     Schedule XI - Real Estate and Accumulated Depreciation            22
                                                        
     Notes to Schedule XI                                              23



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, 1996 and 1995

                                Assets

                                             1996                   1995
Rental properties at cost:          
   Land                                  $     74,324          $    297,724
   Buildings and improvements               2,245,405             4,246,803
   Furniture and fixtures                      21,000                21,000
                                            ---------            ----------
                                            2,340,729             4,565,527
   Less - accumulated depreciation        (   770,607)          (1,285,912)
                                            ---------            ---------
                                            1,570,122            3,279,615
                                    
Cash and cash equivalents                     445,412              346,511
Restricted cash                               107,436              366,524
Notes receivable                            3,449,018            2,099,457
Other assets                                    2,576                3,331
                                            ---------            ---------
               Total                      $ 5,574,564          $ 6,095,438
                                            =========            =========
                   Liabilities and Partners' Equity
                                   
Liabilities:                       
   Accounts payable:               
        Trade                             $   155,463          $   244,984     
        Related parties                            39               59,725
   Deferred income                             13,282               81,777
   Other liabilities                            1,396                    0
   Tenant security deposits                     9,885               13,093
                                            ---------            ---------
               Total liabilities              180,065              399,579
                                            ---------            --------- 
Partners' equity                            5,394,499            5,695,859
                                            ---------            ---------
               Total                      $ 5,574,564          $ 6,095,438
                                            =========            =========
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, 1996, 1995 and 1994



                                         1996           1995            1994
                                                  
Revenues:                                             
   Rental income                       $ 267,148     $ 393,751     $   607,399
   Gain on sale of units                  74,551        33,305         652,641
   Interest income                       196,100       125,505          11,907
                                         -------       -------       ---------
               Total revenues            537,799       552,561       1,271,947
                                         -------       -------       ---------
Costs and expenses:                 
   Rental operations                     306,632       385,284         403,438
   General and administrative            128,000       108,000         108,000
   Depreciation and amortization         128,337       178,347         231,677
                                         -------       -------       ---------
               Total costs and expenses  562,969       671,631         743,115
                                         -------       -------       ---------
Net (loss) income                     ($  25,170)   ($ 119,070)    $   528,832
                                         =======       =======       =========
Net (loss) income per limited partnership unit:   
                                      ($    3.01)   ($   13.03)    $     63.18
                                         =======       =======       =========

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, 1996, 1995 and 1994

                                         Dover  
                                         Historic       Limited
                                         Advisors III Partners (2)     Total
                                         (1)           
Percentage participation in profit or loss   1%           99%            100%
                                                     
Balance at December 31, 1993               (95,060)    5,672,363     5,577,303
                                   
Net income                                   5,288       523,544       528,832
                                          --------     ---------     ---------
Balance at December 31, 1994               (89,772)    6,195,907     6,106,135
                                  
Net loss                                    (1,191)     (117,879)     (119,070)
                                       
Distribution to partners                   (21,921)     (269,285)     (291,206)
                                          --------     ---------     --------- 
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
                                           =======     =========     =========


 (1)   General Partner.

  (2)   8,285.7 limited partnership units outstanding at December  31,
        1996, 1995, and 1994.

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, 1996, 1995 and 1994

                                                       1996     1995     1994
                                               
Cash flows from operating activities:                 
   Net (loss) income                              ($ 25,170)($119,070) $528,832
   Adjustments to reconcile net (loss)
     income to net cash provided by
     (used in) operating activities:
Gain on sale of units                               (74,551)  (33,305) (652,641)
Depreciation and amortization                       128,337   178,347   231,677
Changes in assets and liabilities:           
   Decrease (increase) in restricted cash          259,088   (106,771) (192,992)
   Decrease (increase) in other assets                 755     45,911   (49,042)
   (Decrease) increase in accounts payable
      trade                                        (89,521)   (87,565)  316,174
   (Decrease) increase in accounts payable
      related parties                              (59,686)    40,486    17,336
   (Decrease) increase in deferred income          (68,495)    81,777         0
   Increase in other liabilities                     1,396          0         0
   Decrease in tenant security deposits             (3,208)    (8,949)  (20,348)
     Net cash provided by (used in) operating    ---------  ---------  --------
       activities:                                  68,945     (9,139)  178,996
                                                 ---------  ---------  --------
Cash flows from investing activities:            
   Capital expenditures                           (148,921)  (415,718) (751,820)
   Decrease in notes receivable                    580,939     20,546          0
   Proceeds from sale of units                    (125,872)   390,749  1,058,620
     Net cash provided by (used in) investing    ---------  ---------  ---------
       activities                                  306,146     (4,423)   306,800
                                                 ---------  ---------  ---------
Cash flows from financing activities:               
   Distribution to partners                       (276,190)  (291,206)         0
                                                 ---------  ---------  ---------
      Net cash used in financing activities       (276,190)  (291,206)         0
                                                 ---------  ---------  ---------
Increase (decrease) in cash and cash equivalents    98,901   (304,768)   485,796
Cash and cash equivalents at beginning of year     346,511    651,279    165,483
                                                 ---------  ---------  ---------
Cash and cash equivalents at end of year        $  445,412 $  346,511 $  651,279
                                                 =========  =========  =========
Supplemental Schedule of Non-Cash Investing      
Activities:
  Net assets transferred                        $2,227,249 $1,626,713 $1,471,723
  Notes receivable received from the sale
     of Units                                    1,930,501    977,525  1,142,478

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 (a general partnership
whose  partners are Mr. Gerald Katzoff and DHP, Inc.,) as the  General
Partner and DHP, Inc., (formerly Dover Historic Properties, Inc.,)  as
the  limited  partner.   Upon  the admittance  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 consistently 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 1996, 1995, and 1994).

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,  1996,
uninsured funds held at one institution approximate $438,000.

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  a
continued hold of 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 a continued hold of  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, 1995.

11.    New Accounting Pronouncement

Effective  January 1, 1995, the Partnership adopted the provisions  of
Statement  of  Financial  Accounting  Standards  ("SFAS")   No.   121,
"Accounting for the Impairment of Long - Lived Assets and for  Long  -
Lived  Assets to be Disposed Of."  There was no cumulative  effect  of
the adoption of SFAS No. 121.

12.    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  are  collateralized  by the  condominium  units  and  bear
interest at rates ranging from 6 1/2% to 8 1/4%.  The notes consist 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 will 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  are  due
monthly and all principal payments are based on a 30-year amortization
schedule.  Interest income is recognized as interest becomes due.

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.  In 1993, in anticipation  of
a  distribution to both the limited and General Partner,  the  General
Partner received $8,000.  The distribution was delayed until 1995.  At
that  time the limited partners received a distribution in the  amount
of  $269,286 while the General Partner received its portion  less  the
$8,000 previously received.

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.

Pursuant to certain agreements, the developer of one property, and the
partner in the Venture, are entitled to share in the following:

               a.    46%  of  net cash flow from operations after  the
               Partnership  receives  its  priority  distribution  (as
               defined).

               b.   25% of the net proceeds (as defined) from the sale
               or  refinancing  of the property.  The  Partnership  is
               entitled  to  a priority distribution of such  proceeds
               prior to any payment to the developer.

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  1995  and  1996  were
       $49,499 and $88,452, respectively.

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 and 1995, these expenses were approximately $146,000  and
$416,000, respectively and were funded by sales proceeds.

CMGP  has 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  (see  Note  B,  paragraph 12, 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 and $33,305 in 1996 and 1995,
respectively, 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,
                                     1996             1995             1994
Net (loss) income - book          ($   25,170)   ($   119,070)      $  528,832
Excess of book over tax           
 depreciation                           9,209          36,354           54,195
Gain on sale of units                  (8,648)         (2,817)        (324,105)
Timing differences                     31,086          (8,570)          (1,933)
Minority interest (tax only)            9,349          (1,327)         (19,802)
                                    ---------       ---------        --------- 
Net (loss) income - tax            $   15,826     ($   95,430)      $  237,187
                                    =========       =========        =========
                                        For the Years Ended December 31,
                                     1996               1995           1994

Partners' equity - book            $5,394,499       $5,695,859      $6,106,135
Costs of issuance                   1,077,141        1,077,141       1,077,141
Cumulative tax over book loss        (232,683)        (273,679)       (297,318)
                                    ---------        ---------       ---------
Partners' equity - tax             $6,238,957       $6,499,321      $6,885,958
                                    =========        =========       =========
<PAGE>
                       SUPPLEMENTAL INFORMATION
<PAGE>

                             DIVERSIFIED HISTORIC INVESTORS IV
                                 (a limited partnership)
                                                                          
                    SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                    DECEMBER 31, 1996

               Initial Cost         Gross Amount
               to Partnership       which carried at
                    (b)             December 31, 1996   
                                                                           
                     Buildings          Buildings               
                       and                and                Accum   Date  Date
Description   Land Improvements  Land Improvements  Total    Depr.  Constr.Acq
(a)                                                 (c)(d)    (d)(e)  (a)
12 apartment 
units in                                                
Phila, PA   $54,000 $1,209,858 $54,000 $1,392,933 $1,446,933 $484,019 1988  5/87
              
10 apartment                   
units in
Concord, NC  20,324    692,522  20,324    873,472    893,793  286,588 1988 11/88
             ------  ---------  ------  ---------  ---------  ------
            $74,324 $1,902,380 $74,324 $2,266,405 $2,340,729 $770,607
             ======  =========  ======  =========  =========  =======
<PAGE>
             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
                         NOTES TO SCHEDULE XI
                                   
                           December 31, 1996

(A)    All  three  properties  are certified  historic  structures  as
       defined  in  the Internal Revenue Code of 1986.  The  "date  of
       construction"  refers  to the period in which  such  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,  1996,
       for  Federal  income tax purposes is approximately  $1,890,507.
       The  depreciable basis of buildings and improvements is further
       reduced  for  Federal  income  tax  purposes  by  the  historic
       rehabilitation credit obtained.

(D)    Reconciliation of real estate:

                                         1996           1995             1994
Balance at beginning of year          $4,565,527     $5,776,522     $6,496,425
Additions during the year:                                       
   Improvements                          148,921        415,718        751,820
Deductions during the year:                                     
   Sale of units                      (2,373,719)    (1,626,713)    (1,471,723)
                                       ---------      ---------      ---------
Balance at end of year                $2,340,729     $4,565,527     $5,776,522
                                       =========      =========      =========
Reconciliation of accumulated depreciation:

                                          1996           1995           1994
Balance at beginning of year          $1,285,912     $1,399,309     $1,540,898
Depreciation expense for the year        128,337        178,347        231,677
Sale of units                           (643,642)      (291,744)      (373,266)
                                       ---------      ---------      ---------
Balance at end of year                $  770,607     $1,285,912     $1,399,309
                                       =========      =========      =========

(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

Gerald Katzoff           49      Partner in  No fixed term      Since January
                                 DoHA-III                       1987
                                                             
DHP, Inc.                --      Partner in  No fixed term      Since January
(Formerly Dover Historic         DoHA-III                       1987
Properties, Inc.)

                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  DHP,  Inc.
and Gerald Katzoff.  DHP, 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.  The individual partner of DoHA-III does not have any  day
to day responsibilities to the general partnership.

                     Gerald  Katzoff  (age 49) has  been  involved  in
various  aspects of the real estate industry since 1974.  Mr. Katzoff,
who  is  not  involved in the day to day affairs of the Registrant  or
DoHA VI, is the owner of entities which control various hotel and  spa
resorts  in the United States.  Mr. Katzoff is a former President  and
director of D,Ltd., (formerly The Dover Group, the corporate parent of
DHP, Inc.).

                Dover  Historic  Properties, Inc. was incorporated  in
Pennsylvania   in  December  1984  for  the  purpose   of   sponsoring
investments in, rehabilitating, developing and managing historic  (and
other)  properties.   In  February 1992,  Dover  Historic  Properties,
Inc.'s name was changed to DHP, Inc.  DHP, Inc. is a subsidiary of The
Dover  Group,  Ltd., an entity formed in 1985 to act  as  the  holding
company  for  DHP, Inc. and certain other companies  involved  in  the
development and operation of both historic properties and conventional
real  estate  as  well  as  in  financial (non-banking)  services.  In
February 1992, Dover Group's name was changed.

               The executive officers, directors, and key employees of
DHP, Inc. are described below.

                Michael  J. Tuszka (age 49) was appointed Chairman  of
DHP,  Inc.  and D, LTD. on January 27, 1993.  Mr. Tuszka  resigned  as
Chairman of both DHP, Inc. and D, LTD effective June 30, 1996.

                  Donna    M.    Zanghi   (age   40)   was   appointed
Secretary/Treasurer  of  DHP,  Inc.   She  is  also  a  Director   and
Secretary/Treasurer of D, LTD.  She has been 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 32) was appointed on January 27,
1993 as Assistant Secretary of both D, LTD and DHP, Inc.

Item 11.       Executive Compensation

                a.    Cash Compensation - During 1996, 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
1996, 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  1996  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  1996, 1995 and 1994 was $27,619,  $21,921  and  $0,
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.


                                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, 1996 and 1995.

                   b. Consolidated Statements of Operations for the Years Ended
                      December 31, 1996, 1995 and 1994.

                   c. Consolidated Statements of Changes in Partners' Equity
                      for the Years Ended December 31, 1996, 1995 and 1994.

                   d. Consolidated Statements of Cash Flows for the Years Ended
                      December 31, 1996, 1995 and 1994.

                   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   Document
                       Number
                         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, 1996.

                    (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.

                             DIVERSIFIED HISTORIC INVESTORS IV -
                             INCOME FUND
                                            
Date:  April 29, 1997        By: Dover Historic Advisors III, General Partner
                                             
                                 By:  /s/ Gerald Katzoff
                                      GERALD KATZOFF, Partner
                                                      
                                 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:  /s/ Gerald Katzoff                                    April 29, 1997
         GERALD KATZOFF,
         Partner


    By:  /s/ Michele F. Rudoi                                  April 29, 1997
         MICHELE F. RUDOI,
         Assistant Secretary