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, 1997
                          --------------------------------------------

[   ]  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
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        (Exact name of registrant as specified in its charter)

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

        SUITE 500, 1521 LOCUST STREET, PHILADELPHIA,  PA 19102
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(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,  1997,  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 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.

                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,  1997,  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, 1997, all of the apartment units were under
lease  at  monthly rental rates ranging from $525 to $755.  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, 1997 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,  1997,  all  of  the
apartment  units  were under lease (100%) with monthly  rents  ranging
from $665 to $755.

                     All  leases are renewable, one-year leases.   The
occupancy for the previous four years was 89% for 1996, 92% for  1995,
88%  for  1994  and 78% for 1993.  The monthly rental range  has  been
approximately  the same since 1993.  For tax purposes,  this  property
has  a  federal tax basis of $1,200,757 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,  1996,  all of the units were under  lease  (100%)  with
monthly rates ranging from $525 to $545.

                     All  leases are renewable, one-year leases.   The
occupancy for the previous four years was 95% for 1996, 90% for  1995,
98%  for  1994 and 100% for 1993.  The monthly rental range  has  been
approximately  the same since 1993.  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 69 units were  sold
or exchanged in 1997.

                b.    As  of December 31, 1997, there were 991  record
holders of Units.

                c.   In 1997 and 1996 Registrant made distributions in
the amount of $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, 1997.  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.

                         1997        1996        1995        1994        1993
                     
 Rental income       $  180,312  $  267,148  $  393,751  $  607,399  $  692,195
 Interest income        274,358     196,100     125,505      11,907       3,787
 Net (loss) earnings   (541,583)    (25,170)   (119,070)    528,832     (71,064)
 Net (loss) earnings        
 per Unit                (64.71)      (3.01)     (13.03)      63.18       (7.72)
 Total assets (net of 4,802,128   5,574,564   6,095,438   6,479,965    5,637,971
 depreciation and
 amortization)
 Dividends (distribu-   276,190     276,190     291,206           0            0
 tions)

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

               (1)  Liquidity

                     At  December  31, 1997, Registrant  had  cash  of
approximately $3,102,030.  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  $248,571  to  the   limited
partners  in  November  1997  and  August  1996,  respectively.    The
Registrant is not aware of any additional sources of liquidity.

                    As of December 31, 1997, Registrant had restricted
cash  of  $56,685  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 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  1997, Registrant incurred a net  loss  of
$541,583 ($64.71 per limited partnership unit) compared to a  loss  of
$25,170  ($3.01 per limited partnership unit) in 1996 and  a  loss  of
$119,070  ($13.03 per limited partnership unit) in 1995.  Included  in
the  loss  for  1997 is the loss related to the sale on the  notes  as
referred to in Item 1a, above.  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.  In November 1997 and August 1996,
the  Registrant  distributed approximately  $291,000  to  the  limited
partners and General Partner.

                     Rental income decreased from $393,751 in 1995  to
$267,148 in 1996 to $180,312 in 1997.  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.  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.

                    Interest income increased from $125,505 in 1995 to
$196,100 in 1996 to $274,358 in 1997.  The increase from 1995 to  1996
and  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 decreased from $385,284
in  1995  to $306,632 in 1996 and increased to $348,325 in 1997.   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.  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.

                     General and administrative expense increased from
$108,000  in  1995 to $128,000 in 1996 and decreased  to  $108,000  in
1997.   The increase from 1995 to 1996 and the decrease from  1996  to
1997 is due to fees paid in 1996 to reimburse the General Partner  for
certain services rendered.

                     Depreciation  and amortization expense  decreased
from  $178,347 in 1995 to $128,337 in 1996 to $90,971  in  1997.   The
decrease  from  1995 to 1996 to 1997 is due to the sale  of  Units  at
Henderson  resulting  in  a  lower balance on  which  depreciation  is
calculated.

                     In  1997, a loss of $402,000 was incurred at  the
Registrant's three properties compared to income of $111,000  in  1996
and income of $3,000 in 1995.  Included in income in 1996 and 1995  is
a  gain of $74,000 and $33,000, respectively, due to the sale of Units
at  the  Henderson.   A  discussion of property  operations/activities
follows:

                    In 1997, Registrant incurred a loss of $402,000 at
The  Henderson Riverfront Apartments compared to income  of  $138,000,
including  depreciation  expense of $39,000  in  1996  and  income  of
$24,000  including depreciation expense of $89,000 in 1995.   Included
in  income  in  1996  and  1995, is a gain  of  $74,000  and  $33,000,
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.  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 is 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.  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.

                     In  1997, Registrant recognized income of  $2,000
including $48,000 in depreciation expense at the Brass Works, compared
to  a  loss of $19,000 including $48,000 depreciation expense in  1996
and  a  loss of $22,000, including $48,000 of depreciation expense  in
1995.  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.  The decrease in the loss from 1995 to  1996  is
the result of an increase in the average occupancy (72% to 95%).

                    In 1996, Registrant recognized a loss of $2,000 at
Locke  Mill Plaza including $26,000 of depreciation expense,  compared
to  a loss of $8,000 including $26,000 of depreciation expense in 1996
and  income  of $1,000, including $26,000 of depreciation  expense  in
1995.   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.   The
increase  in the loss from 1995 to 1996 is also due to an increase  in
leasing  commissions  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.  Rental income increased due to an increase
in the average monthly rental rates.

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, 1997 and 1996  and  the  related
consolidated statements of operations, changes in partners' equity and
cash  flows  for  the years ended December 31, 1997,  1996  and  1995.
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,  1997 and 1996, and the results of their operations and their cash
flows  for  the  years  ended December 31, 1997,  1996  and  1995,  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 19, 1998
<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, 1997 and 1996      11
                                                                   
     Consolidated  Statements of Operations for the Years Ended
       December 31, 1997, 1996, and 1995                            12
                                                              
     Consolidated  Statements  of Changes in Partners' Equity  
       for  the  Years  Ended December 31, 1997, 1996, and 1995     13
          
     Consolidated  Statements of Cash Flows for the Years Ended
       December  31,  1997,  1996, and 1995                         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, 1997 and 1996

                                Assets

                                                 1997                  1996
Rental properties at cost:                  
   Land                                      $   74,324            $   74,324
   Buildings and improvements                 2,246,555             2,245,405
   Furniture and fixtures                        23,841                21,000
                                              ---------             --------- 
                                              2,344,720             2,340,729
   Less - accumulated depreciation           (  861,579)           (  770,607)
                                              ---------             ---------
                                              1,483,141             1,570,122
                                            
Cash and cash equivalents                     3,102,030               445,412
Restricted cash                                  56,685               107,436
Notes receivable                                      0             3,449,018
Other assets                                    160,272                 2,576
                                              ---------             ---------
               Total                         $4,802,128            $5,574,564
                                              =========             =========
                   Liabilities and Partners' Equity
                                   
Liabilities:                                
   Accounts payable:                  
        Trade                                $  213,002            $  155,463
        Related parties                               0                    39
   Deferred income                                    0                13,282
   Other liabilities                                745                 1,396
   Tenant security deposits                      11,655                 9,885
                                              ---------             ---------
               Total liabilities                225,402               180,065
                                              ---------             ---------  
Partners' equity                              4,576,726             5,394,499
                                              ---------             ---------
               Total                         $4,802,128            $5,574,564
                                              =========             =========

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, 1997, 1996 and 1995



                                            1997         1996           1995
                                        
Revenues:                              
   Rental income                         $ 180,312     $ 267,148     $ 393,751
   Gain on sale of units                         0        74,551        33,305
   Interest income                         274,358       196,100       125,505
                                           -------       -------       -------
               Total revenues              454,670       537,799       552,561
                                           -------       -------       -------
Costs and expenses:                                      
   Rental operations                       348,325       306,632       385,284
   General and administrative              108,000       128,000       108,000
   Loss on sale of notes                   448,957             0             0
   Depreciation and amortization            90,971       128,337       178,347
                                           -------       -------       -------
               Total costs and expenses    996,253       562,969       671,631
                                           -------       -------       -------
Net loss                                ($ 541,583)   ($  25,170)   ($ 119,070)
                                           =======       =======       ======= 
Net loss per limited partnership unit:  ($   64.71)   ($    3.01)   ($   13.03)
                                           =======       =======       ======= 

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, 1997, 1996 and 1995


                                         Dover Historic    Limited
                                        Advisors III (1) Partners (2)    Total
                                                    
Percentage participation in profit or loss    1%            99%           100%
                                             
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
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
                                             =======     =========    =========


  (1)   General Partner

  (2)   8,285.7 limited partnership units outstanding at December  31,
        1997, 1996, and 1995.

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, 1997, 1996 and 1995

                                             1997          1996         1995
                                       
Cash flows from operating activities:  
   Net loss                              ($  541,583) ($   25,170) ($  119,070)
   Adjustments to reconcile net loss to 
     net cash provided by (used in)
     operating activities:
Gain on sale of units                              0      (74,551)     (33,305)
Depreciation and amortization                  90,971     128,337      178,347
Changes in assets and liabilities:                              
   Decrease (increase) in restricted cash      50,751     259,088     (106,771)
   (Increase) decrease in other assets       (157,705)        755       45,911
   Increase (decrease) in accounts payable
     - trade                                   57,539     (89,521)     (87,565)
   (Decrease) increase in accounts payable 
     - related parties                            (39)    (59,686)      40,486
   (Decrease) increase in deferred income     (13,282)    (68,495)      81,777
   (Decrease) increase in other liabilities      (651)      1,396            0
   Increase (decrease) in tenant security 
     deposits                                   1,780      (3,208)      (8,949)
       Net cash (used in) provided by       ---------    --------    ---------
        operating activities:                (512,219)     68,945       (9,139)
Cash flows from investing activities:       ---------    --------    ---------
   Capital expenditures                        (3,991)   (148,921)    (415,718)
   Decrease in notes receivable             3,449,018     580,939       20,546
   Proceeds from sale of units                      0    (125,872)     390,749
       Net cash provided by (used in)       ---------    --------    ---------
        investing activities                3,445,027     306,146       (4,423)
Cash flows from financing activities:       ---------    --------    --------- 
   Distribution to partners                  (276,190)   (276,190)    (291,206)
                                            ---------    --------    ---------
      Net cash used in financing activities  (276,190)   (276,190)    (291,206)
                                            ---------    --------    --------- 
Increase (decrease) in cash and cash 
  equivalents                               2,656,618      98,901     (304,768)
Cash and cash equivalents at beginning of
  year                                        445,412     346,511      651,279
                                            ---------    --------    ---------
Cash and cash equivalents at end of year   $3,102,030   $ 445,412   $  346,511
                                            =========    ========    ========= 
Supplemental Schedule of Non-Cash Investing     
Activities:
  Net assets transferred                            0  $2,227,249   $1,626,713
  Notes receivable received from the sale of Units  0   1,930,501      977,525

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 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 1997, 1996, and 1995).

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,  1997,
uninsured funds held at one institution approximate $3,099,560.

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.

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  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.   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 Partnership
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 Partnership 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.

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.

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 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  (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 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,
                                      1997            1996            1995
                                     ------          ------          ------
Net (loss) income - book          ($  541,583)    ($   25,170)    ($  119,070)
Excess of book over tax                                             
 Depreciation                          22,630           9,209          36,354
Gain on sale of units                 402,439          (8,648)         (2,817)
Timing differences                     (1,109)         31,086          (8,570)
Minority interest (tax only)               18           9,349          (1,327)
                                    ---------       ---------        --------
Net (loss) income - tax           ($  117,605)     $   15,826      ($  95,430)
                                    =========       =========        ========
                                        For the Years Ended December 31,
                                      1997            1996             1995
                                     ------          ------           ------
Partners' equity - book            $4,576,726      $5,394,499       $5,695,859
Costs of issuance                   1,077,141       1,077,141        1,077,141
Cumulative tax over book loss         191,295        (232,683)        (273,679)
                                    ---------       ---------        ---------
Partners' equity - tax             $5,845,162      $6,238,957       $6,499,321
                                    =========       =========        =========
<PAGE>

                       SUPPLEMENTAL INFORMATION
<PAGE>

                    DIVERSIFIED HISTORIC INVESTORS IV
                         (a limited partnership)
                                                                          
           SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION
                            DECEMBER 31, 1997
                                                                          

                                              Gross Amount at
                                              which Carried at
               Initial Cost                   December 31, 1997
               to Partnership
                        (b)

                                                               
                  Buildings          Buildings                     
                     and                and                Accum  Date of  Date
Description Land Improvement  Land  Improvement  Total     Depr.  Constr.  Acq
(a)                                               (c)(d)   (d)(e)      
                                                                  
12 apt    
units in
Phila, PA $54,000 $1,209,858 $54,000 $1,395,866 $1,449,866 $539,625 1988 5/87
                                                         
10 apt   
units in
North 
Concord,NC 20,324    692,522  20,324    874,530    894,854  321,954 1988 11/88
           ------  ---------  ------  ---------  ---------  -------
          $74,324 $1,902,380 $74,324 $2,270,396 $2,344,722 $861,579 
           ======  =========  ======  =========  =========  =======
<PAGE>

             DIVERSIFIED HISTORIC INVESTORS IV INCOME FUND
                        (a limited partnership)
                                   
                         NOTES TO SCHEDULE XI
                                   
                           December 31, 1997

(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,  1997,
       for  Federal  income tax purposes is approximately  $1,893,699.
       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:

                                         1997           1996           1995
Balance at beginning of year          $2,340,729     $4,565,527     $5,776,522
Additions during the year:                                      
   Improvements                            3,991        148,921        415,718
Deductions during the year:                                      
   Sale of units                               0     (2,373,719)    (1,626,713)
                                       ---------      ---------      ---------
Balance at end of year                $2,344,720     $2,340,729     $4,565,527
                                       =========      =========      ========= 
Reconciliation of accumulated depreciation:

                                         1997           1996           1995
Balance at beginning of year          $  770,607     $1,285,912     $1,399,309
Depreciation expense for the year         90,972        128,337        178,347
Sale of units                                  0       (643,642)      (291,744)
                                       ---------      ---------      ---------
Balance at end of year                $  861,579     $  770,607     $1,285,912
                                       =========      =========      =========
(E)    See  Note  B  to  the  consolidated  financial  statements  for
       depreciation methods and lives.

<PAGE>

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 DoHA-III   No fixed term  January 1987 -
                                                                  May 1997
                  
DHP, Inc.               --   Partner in DoHA-III   No fixed term  January 1987 -
("Formerly Dover                                                  May 1997
Historic Properties, Inc.")
                             
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 40) 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 32) 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 1997, 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
1997, 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  1997  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 1997, 1996 and 1995 was $27,619, $27,619 and $21,921,
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, 1997
                       and 1996.

                   b.  Consolidated Statements of Operations for the Years
                       Ended December 31, 1997, 1996 and 1995.

                   c.  Consolidated Statements of Changes in Partners' Equity
                       for the Years Ended December 31, 1997, 1996 and 1995.

                   d.  Consolidated Statements of Cash Flows for the Years Ended
                       December 31, 1997, 1996 and 1995.

                   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, 1997.

                   (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 15, 1998    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 15, 1998
          ----------------------                             --------------
          SPENCER WERTHEIMER,
          President

      By: /s/ Michele F. Rudoi                               April 15, 1998
          ----------------------                             --------------
          MICHELE F. RUDOI,
          Assistant Secretary