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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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,
2002

OR



|     |                                                         
|---- | --------------------------------------------------------
|[  ] | 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 no. 33-13437

DEL TACO INCOME PROPERTIES IV

(A California limited partnership)


(Exact name of registrant as specified in its
charter)


|                                                                                                  |  |                                                           
|------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------
|                                                                                                 
|California
    (State or other jurisdiction of
    incorporation or organization)                 |  | 33-0241855
    (I.R.S. Employer
    Identification Number)
|                                                                                                 
|25521 Commercentre Drive
    Lake Forest, California
    (Address of principal executive offices) |  | 92630
    (Zip Code)                                      

Registrants telephone number, including
area code: (949) 462-9300

Securities registered pursuant to section 12(b)
of the Act: None

Securities registered pursuant to section 12(g)
of the Act: None

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

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrants Form S-11
Registration Statement filed June 5, 1987 are incorporated by
reference into Part IV of this report.



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TABLE OF CONTENTS



|              |                                                                                               |  |  |  |  |  |  | 
|------------- | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I       
|              | Item 1. Business                                                                             
|              | Item 2. Properties                                                                           
|              | Item 3. Legal Proceedings                                                                    
|              | Item 4. Submissions of Matters to a Vote of Security Holders                                 
|PART II      
|              | Item 5. Market for the Partnerships Common Equity and Related Security Holder Matters       
|              | Item 6. Selected Financial Data                                                              
|              | Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
|              | Item 7a. Quantitative and Qualitative Disclosures About Market Risk.                         
|              | Item 8. Financial Statements                                                                 
|              | Item 9. Disagreements on Accounting and Financial Disclosure                                 
|PART III     
|              | Item 10. Directors and Executive Officers of the Partnerships General Partner               
|              | Item 11. Management Remuneration and Transactions                                            
|              | Item 12. Security Ownership of Certain Beneficial Owners and Management                      
|              | Item 13. Certain Relationships and Related Transactions                                      
|              | Item 14. Controls and Procedures                                                             
|PART IV      
|              | Item 15. Exhibits, Financial Statements Schedules, and Reports on Form 8-K                   
|SIGNATURES   
|EXHIBIT INDEX
|EXHIBIT 99.1 
|EXHIBIT 99.2 
|EXHIBIT 99.3 



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PART I




Item 1. Business

The partnership is a publicly-held limited partnership organized under the
California Uniform Limited Partnership Act. The partnerships General Partner
is Del Taco, Inc., a California corporation (General Partner). The
partnership sold 165,415 units totaling $4.135 million through an offering of
limited partnership units from June 1987 through June 1988. The term of the
partnership agreement is until December 31, 2027 unless terminated earlier by
means provided in the partnership agreement.

The business of the partnership is ownership and leasing of restaurants in
California to Del Taco, Inc. The partnership acquired land and constructed
three Mexican-American restaurants for long-term lease to Del Taco, Inc. Each
property is leased for 32 years on a triple net basis. Rent is equal to twelve
percent of gross sales of the restaurants plus supplemental rent as required by
the partnership agreement. As of December 31, 2002, the partnership had a
total of three properties leased to Del Taco (Del Taco, in turn, has sub-leased
one of the restaurants to a Del Taco franchisee).

The partnership has no full time employees. The partnership agreement assigns
full authority for general management and supervision of the business affairs
of the partnership to the General Partner. The General Partner has a one
percent interest in the profits or losses and distributions of the partnership.
Limited partners have no right to participate in the management or conduct of
the partnerships business affairs.

2



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Item 2. Properties

The partnership has acquired three properties with proceeds obtained from the
sale of limited partnership units:

|                    |  |                    |  |                  |  |                                           |  |                   
|------------------- |  | ------------------ |  | ---------------- |  | ----------------------------------------- |  | ------------------
|                    |  |                    |  |                  |  |                                           |  | Date of           
|                    |  |                    |  | Date of          |  | Restaurant                                |  | Commencement of   
|Address             |  | City, State        |  | Acquisition      |  | Constructed                               |  | Operation (1)     
|                    |  |                    |  |                  |  |                                           |  |                   
|Orangethorpe Avenue |  | Placentia, CA      |  | August 5, 1988   |  | 60 seat with drive
through service
window |  | March 27, 1989    
|                    |  |                    |  |                  |  |                                           |  |                   
|Lakeshore Drive     |  | Lake Elsinore, CA  |  | February 1, 1989 |  | 60 seat with drive
through service
window |  | April 18, 1990 (2)
|                    |  |                    |  |                  |  |                                           |  |                   
|Highland Avenue     |  | San Bernardino, CA |  | December 8, 1989 |  | 60 seat with drive
through service
window |  | July 13, 1990     



---

|(1) |  | Commencement of operation is the first date Del Taco, Inc., as lessee,
operated the facility on the site as a Del Taco restaurant.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | The restaurant is subleased to a franchisee of Del Taco, Inc. and the
restaurant operates as a Del Taco restaurant.               




Item 3. Legal Proceedings

The partnership is not a party to any material pending legal proceedings.




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

None.




PART II




Item 5. Market for the Partnerships Common Equity and Related Security Holder Matters

The partnership sold 165,415 ($4,135,375) limited partnership units during the
public offering period ended June 3, 1988 and currently has 317 limited
partners of record. There is no public market for the trading of the units.
Distributions made by the partnership to the limited partners during the past
three fiscal years are described in Note 7 to the Notes to the Financial
Statements contained under Item 8.

3



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Item 6. Selected Financial Data

The selected financial data presented as of and for the years ended December
31, 2002, 2001, 2000, 1999 and 1998, has been derived from the audited
financial statements and should be read in conjunction with the financial
statements and related notes as of December 31, 2002, 2001 and 2000 and Item 7.

|                                                |  |                                 |           |      |  |      |           |      |  |      |           |  |  |   |           |  |  |   |           | 
|----------------------------------------------- |  | ------------------------------- | --------- | ---- |  | ---- | --------- | ---- |  | ---- | --------- |  |  | - | --------- |  |  | - | --------- | 
|                                                |  | For the Year Ended December 31,
|                                                |  |                                
|                                                |  | 2002                            |           | 2001 |  | 2000 |           | 1999 |  | 1998
|                                                |  |                                 |           |      |  |      |           |      |  |     
|Rental revenue                                  |  | $                               | 432,629   |      |  | $    | 434,848   |      |  | $    | 417,251   |  |  | $ | 401,101   |  |  | $ | 398,071   | 
|Interest and other income                       |  |                                 | 3,127     |      |  |      | 4,241     |      |  |      | 4,545     |  |  |   | 3,223     |  |  |   | 2,455     | 
|General and administrative
expense              |  |                                 | 45,707    |      |  |      | 43,193    |      |  |      | 42,205    |  |  |   | 42,347    |  |  |   | 42,168    | 
|Depreciation expense                            |  |                                 | 55,268    |      |  |      | 55,268    |      |  |      | 59,485    |  |  |   | 103,381   |  |  |   | 103,381   | 
|Net income                                      |  |                                 | 334,781   |      |  |      | 340,628   |      |  |      | 320,106   |  |  |   | 258,596   |  |  |   | 254,610   | 
|Net income per limited
partnership unit (1)     |  |                                 | 2.00      |      |  |      | 2.04      |      |  |      | 1.92      |  |  |   | 1.55      |  |  |   | 1.52      | 
|Cash distributions per
limited partnership unit |  |                                 | 2.35      |      |  |      | 2.32      |      |  |      | 2.29      |  |  |   | 2.16      |  |  |   | 1.83      | 
|Total assets                                    |  |                                 | 2,039,717 |      |  |      | 2,101,201 |      |  |      | 2,144,413 |  |  |   | 2,198,920 |  |  |   | 2,298,687 | 
|Long-term obligations                           |  |                                 | 137,953   |      |  |      | 137,953   |      |  |      | 137,953   |  |  |   | 137,953   |  |  |   | 137,953   | 



---

|(1) |  | The net income per limited partnership unit was calculated based upon
165,375 weighted average units outstanding in 2002, 2001, 2000 and 1999,
and 165,415 weighted average units outstanding in 1998.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations

Managements discussion and analysis of financial condition, results of
operations, liquidity and capital resources, and off balance sheet arrangements
and contractual obligations contained within this report on Form 10-K is more
clearly understood when read in conjunction with the notes to the financial
statements. The notes to the financial statements elaborate on certain terms
that are used throughout this discussion and provide information about the
partnership and the basis of presentation used in this report on Form 10-K.

4



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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

The three restaurants leased to Del Taco make up almost all of the income
producing assets of the partnership. Therefore, the business of the
partnership is almost entirely dependent on the success of the Del Taco trade
name restaurants that lease the properties. The success of the restaurants is
dependent on a large variety of factors, including, but not limited to,
consumer demand and preference for fast food, in general, and for
Mexican-American food in particular.

Liquidity and Capital Resources

The partnership offered limited partnership units for sale between June 1987
and June 1988. 14.5% of the $4.135 million raised through sale of limited
partnership units was used to pay commissions to brokers and to reimburse the
General Partner for offering costs incurred. Approximately $3 million of the
remaining funds were used to acquire sites and build three restaurants. In
February of 1992, approximately $442,000 raised during the offering but not
required to acquire sites and build restaurants was distributed to the limited
partners.

The Partnerships only source of cash flow is rental income from the properties
from the triple net leases. Such operating income has historically been and is
expected to continue to be sufficient to fund the Partnerships operating
expenses. Net cash provided by operating activities in excess of the
Partnerships ongoing needs is distributed to the partners.

Off Balance Sheet Arrangements and Contractual Obligations

None.

Results of Operations

The partnership owns three properties that are under long-term lease to Del
Taco for restaurant operations (Del Taco, in turn, has sub-leased one of the
restaurants to a Del Taco franchisee).

The following table sets forth rental revenue earned by restaurant for the
year:

|                                   |       |   |                         |         |      |   |         |         |  |   |         |         | 
|---------------------------------- | ----- | - | ----------------------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                                   |       |   | Year Ended December 31,
|                                   |       |   |                        
|                                   |       |   | 2002                    |         | 2001 |   | 2000   
|                                   |       |   |                         |         |      |   |        
|Orangethorpe Ave., Placentia, CA   |       | $ | 171,135                 |         |      | $ | 176,284 |         |  | $ | 177,310 |        
|Lakeshore Drive, Lake Elsinore, CA |       |   | 173,201                 |         |      |   | 168,305 |         |  |   | 153,993 |        
|Highland Ave., San Bernardino, CA  |       |   | 88,293                  |         |      |   | 90,259  |         |  |   | 85,948  |        
|                                   |       |   |                         |         |      |   |         |         |  |   |         |        
|                                   | Total |   | $                       | 432,629 |      |   | $       | 434,848 |  |   | $       | 417,251 | 
|                                   |       |   |                         |         |      |   |         |         |  |   |         |        

5



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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

The partnership receives rental revenues equal to 12 percent of gross sales
from the restaurants plus supplemental rent as required by the partnership
agreement. The partnership earned rental revenue of $432,629 during the year
ended December 31, 2002, which represents a decrease of $2,219 from 2001. The
decrease in rental revenue was caused primarily by a decrease in the amount of
supplemental rent. The partnership earned rental revenue of $434,848 during
the year ended December 31, 2001, which represents an increase of $17,597 from
2000. The increase in rental revenue was caused primarily by an increase in
sales at the restaurants under lease. Supplemental rent was $73,552, $81,964
and $78,174 for the years ended December 31, 2002, 2001 and 2000, respectively.
Supplemental rent is calculated on an annual basis. The amount of
supplemental rent is the lesser of (a) the supplemental rental rate of 14.6
percent times the aggregate property costs of $3,011,349, less 12 percent of
gross sales, or (b) 50 percent of the aggregate pretax profit, less general and
administrative expenses (as defined) and 50 percent of the franchise royalties
paid (as defined).

The following table breaks down general and administrative expenses by type of
expense:

Percentage of Total General & Admin. Expense

|                                                |  |                         |        |      |  |      |        |   |  |  |        |  
|----------------------------------------------- |  | ----------------------- | ------ | ---- |  | ---- | ------ | - |  |  | ------ | -
|                                                |  | Year Ended December 31,
|                                                |  |                        
|                                                |  | 2002                    |        | 2001 |  | 2000
|                                                |  |                         |        |      |  |     
|Accounting fees                                 |  |                         | 65.32  | %    |  |      | 65.16  | % |  |  | 71.00  | %
|Distribution of information
to limited partners |  |                         | 32.93  |      |  |      | 32.99  |   |  |  | 27.07  |  
|Other                                           |  |                         | 1.75   |      |  |      | 1.85   |   |  |  | 1.93   |  
|                                                |  |                         |        |      |  |      |        |   |  |  |        |  
|                                                |  |                         | 100.00 | %    |  |      | 100.00 | % |  |  | 100.00 | %
|                                                |  |                         |        |      |  |      |        |   |  |  |        |  

General and administrative costs increased by $2,514 from 2001 to 2002. The
increase was caused primarily by increased costs for income tax preparation,
annual audit fees and costs associated with leasing software.

General and administrative costs increased by $988 from 2000 to 2001. The
increase was caused primarily by additional costs incurred during the fourth
quarter of 2001 to lease new software. The new software was needed as a result
of U.S. Government regulations which require the partnership to electronically
file annual K-1 income tax forms with the Internal Revenue Service. The new
software prepares and electronically files the income tax forms and maintains
the underlying partnership database.

Net income decreased by $5,847 from 2001 to 2002 due to the decrease in
revenues of $3,333 and the $2,514 increase in general and administrative
expenses. Depreciation expense was the same in both 2002 and 2001.

Recent Accounting Pronouncements

In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets. SFAS No. 144 supersedes SFAS No. 121 and the
accounting and reporting provisions of Accounting Principles Board Opinion No.
30. It addresses financial accounting and reporting for the impairment of
long-lived assets to be disposed of. SFAS No. 144 is effective for fiscal
years beginning after December 15, 2001. Management adopted SFAS No. 144 on
January 1, 2002. The adoption of SFAS No. 144 did not have an impact on the
Companys results of operations or financial condition.

6



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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with Exit or Disposal Activities (SFAS 146), which addresses financial
accounting and reporting for costs associated with exit or disposal activities
and nullifies Emerging Issues Task Force (EITF) Issue No. 94-3 Liability
Recognition for Certain Employee Terminations Benefits and Other Costs to Exit
an Activity (including Certain Costs Incurred in a Restructuring). SFAS 146
requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred as opposed to the date of
an entitys commitment to an exit plan as required under EITF Issue No. 94-3.
SFAS 146 also requires that measurement of the liability associated with exit
or disposal activities be at fair value. SFAS 146 is effective for the Company
for exit or disposal activities that are initiated after December 31, 2002.
The implementation of SFAS 146 is not expected to have an impact on the
Companys results of operations or financial condition.

Critical Accounting Policies and Estimates

Managements discussion and analysis of financial condition and results of
operations, as well as disclosures included elsewhere in this report on Form
10-K are based upon the Partnerships financial statements, which have been
prepared in accordance with accounting principles generally accepted in the
United States of America. The preparation of these financial statements
requires management to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses. The Partnership
believes the critical accounting policies that most impact the financial
statements are described below. A summary of the significant accounting
policies of the Partnership can be found in Note 1 to the Financial Statements
which is included in Item 8 of this Form 10-K.

Revenue Recognition: Revenue is recognized based on 12 percent of gross sales
of the restaurants which is recorded at the point of sale.

Property and Equipment: Property and equipment is stated at cost.
Depreciation is computed using the straight-line method over estimated useful
lives which are 20 years for land improvements, 35 years for buildings and
improvements, and 10 years for machinery and equipment.

The partnership accounts for property and equipment in accordance with
Statements of Financial Accounting Standards (SFAS) No. 144, Accounting for
the Impairment or Disposal of Long Lived Assets. SFAS 144 requires that
long-lived assets be reviewed for impairment whenever events or changes in
circumstances indicate that the carrying value of the asset may not be
recoverable. In evaluating long-lived assets held for use, an impairment loss
is recognized if the sum of the expected future cash flows (undiscounted and
without interest charges) is less than the carrying value of the asset. Once a
determination has been made that an impairment loss should be recognized for
long-lived assets, various assumptions and estimates are used to determine fair
value including, among others, estimated costs of construction and development,
recent sales of comparable properties and the opinions of fair value prepared
by independent real estate appraisers. Long-lived assets to be disposed of are
reported at the lower of carrying amount or fair value less cost to sell.




Item 7a. Quantitative and Qualitative Disclosures About Market Risk.

None.

7



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Item 8. Financial Statements

PART I. INFORMATION

|                                                                                     |  |             |       | 
|------------------------------------------------------------------------------------ |  | ----------- | ----- | 
|INDEX                                                                                |  | PAGE NUMBER
|                                                                                     |  |            
|Report of Independent Accountants                                                    |  |             | 9     | 
|Report of Independent Public Accountants                                             |  |             | 10    | 
|Balance Sheets at December 31, 2002 and 2001                                         |  |             | 11    | 
|Statements of Income for the years ended
December 31, 2002, 2001 and 2000            |  |             | 12    | 
|Statement of Changes in Partners Equity for
the three years ended December 31, 2002 |  |             | 13    | 
|Statements of Cash Flows for the years ended
December 31, 2002, 2001 and 2000        |  |             | 14    | 
|Notes to Financial Statements                                                        |  |             | 15-19 | 

8



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REPORT OF INDEPENDENT ACCOUNTANTS

To the Partners of
Del Taco Income Properties IV:

In our opinion, the accompanying balance sheet and the related statements of
income, partners equity, and cash flows present fairly, in all material
respects, the financial position of Del Taco Income Properties IV (A California
Limited Partnership) at December 31, 2002, and the results of its operations
and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America. These financial
statements are the responsibility of the Companys management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these statements in accordance with
auditing standards generally accepted in the United States of America, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the 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, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion. The financial statements of Del Taco Income
Properties IV as of December 31, 2001, and for each of the two years ended
December 31, 2001 were audited by other independent accountants who have ceased
operations. Those independent accountants expressed an unqualified opinion on
those financial statements in their report dated February 15, 2002.

PricewaterhouseCoopers LLP
Orange County, California
January 22, 2003

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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

The following report is a copy of a report previously issued by Arthur Andersen
LLP and has not been reissued by Arthur Andersen LLP.

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Partners of
Del Taco Income Properties, IV:

We have audited the accompanying balance sheets of Del Taco Income Properties IV
(a California Limited Partnership) as of December 31, 2001 and 2000, and the
related statements of income, partners equity and cash flows for each of the
three years in the period ended December 31, 2001. These financial statements
and the schedule referred to below are the responsibility of the Partnerships
management. Our responsibility is to express an opinion on these financial
statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the 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 financial statements referred to above present
fairly, in all material respects, the financial position of Del Taco Income
Properties IV as of December 31, 2001 and 2000, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2001 in conformity with accounting principles generally accepted in
the United States.

In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial
position of Del Taco Income Properties IV as of
December 31, 2001 and 2000, and the results of its operations
and its cash flows for each of the three years in the period ended
December 31, 2001 in conformity with accounting principles
generally accepted in the United States.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Real Estate and Accumulated
Depreciation Schedule III is presented for purposes of complying with the
Securities and Exchange Commissions rules and is not part of the basic
financial statements. This schedule has been subjected to the auditing
procedures applied in our audits of the basic financial statements and, in our
opinion, fairly states in all material respects the financial data required to
be set forth therein in relation to the basic financial statements taken as a
whole.

-s- Arthur Andersen

Orange County, California
February 15, 2002

10



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DEL TACO INCOME PROPERTIES IV

BALANCE SHEETS

|                                 |                                |                           |           |           |         |      |           |           |         | 
|-------------------------------- | ------------------------------ | ------------------------- | --------- | --------- | ------- | ---- | --------- | --------- | ------- | 
|                                 |                                |                           |           | 2002      |         | 2001
|                                 |                                |                           |           |           |         |     
|ASSETS                          
|CURRENT ASSETS:                  |                                |                           |           |           |         |      |           |          
|                                 | Cash                           |                           | $         | 117,957   |         |      | $         | 117,445   |        
|                                 | Receivable from Del Taco, Inc. |                           |           | 104,597   |         |      |           | 111,435   |        
|                                 | Deposits                       |                           |           | 510       |         |      |           | 400       |        
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                | Total current assets      |           |           | 223,064 |      |           |           | 229,280 | 
|                                 |                                |                           |           |           |         |      |           |          
|PROPERTY AND EQUIPMENT:          |                                |                           |           |           |         |      |           |          
|                                 | Land and improvements          |                           |           | 1,236,700 |         |      |           | 1,236,700 |        
|                                 | Buildings and improvements     |                           |           | 1,289,860 |         |      |           | 1,289,860 |        
|                                 | Machinery and equipment        |                           |           | 484,789   |         |      |           | 484,789   |        
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                |                           | 3,011,349 |           |         |      | 3,011,349 |          
|                                 | Lessaccumulated depreciation  |                           |           | 1,194,696 |         |      |           | 1,139,428 |        
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                |                           | 1,816,653 |           |         |      | 1,871,921 |          
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                | $                         | 2,039,717 |           |         | $    | 2,101,201 |          
|                                 |                                |                           |           |           |         |      |           |          
|LIABILITIES AND PARTNERS EQUITY
|CURRENT LIABILITIES:             |                                |                           |           |           |         |      |           |          
|                                 | Payable to limited partners    |                           | $         | 29,087    |         |      | $         | 27,942    |        
|                                 | Accounts payable               |                           |           | 3,509     |         |      |           | 9,194     |        
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                | Total current liabilities |           |           | 32,596  |      |           |           | 37,136  | 
|                                 |                                |                           |           |           |         |      |           |          
|OBLIGATION TO GENERAL PARTNER    |                                |                           | 137,953   |           |         |      | 137,953   |          
|                                 |                                |                           |           |           |         |      |           |          
|PARTNERS EQUITY:                |                                |                           |           |           |         |      |           |          
|                                 | Limited partners               |                           |           | 1,881,610 |         |      |           | 1,937,985 |        
|                                 | General Partner-Del Taco, Inc. |                           |           | (12,442   | )       |      |           | (11,873   | )      
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                |                           | 1,869,168 |           |         |      | 1,926,112 |          
|                                 |                                |                           |           |           |         |      |           |          
|                                 |                                | $                         | 2,039,717 |           |         | $    | 2,101,201 |          
|                                 |                                |                           |           |           |         |      |           |          

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

11



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DEL TACO INCOME PROPERTIES IV

STATEMENTS OF INCOME

|          |                                         |            |         |                         |         |      |         |         |         |  |         |         |         | 
|--------- | --------------------------------------- | ---------- | ------- | ----------------------- | ------- | ---- | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|          |                                         |            |         | Year Ended December 31,
|          |                                         |            |         |                        
|          |                                         |            |         | 2002                    |         | 2001 |         | 2000   
|          |                                         |            |         |                         |         |      |         |        
|REVENUES: |                                         |            |         |                         |         |      |         |         |         |  |         |        
|          | Rent                                    |            | $       | 432,629                 |         |      | $       | 434,848 |         |  | $       | 417,251 |        
|          | Interest                                |            |         | 1,702                   |         |      |         | 3,666   |         |  |         | 3,695   |        
|          | Other                                   |            |         | 1,425                   |         |      |         | 575     |         |  |         | 850     |        
|          |                                         |            |         |                         |         |      |         |         |         |  |         |        
|          |                                         |            | 435,756 |                         |         |      | 439,089 |         |         |  | 421,796 |        
|          |                                         |            |         |                         |         |      |         |         |         |  |         |        
|EXPENSES: |                                         |            |         |                         |         |      |         |         |         |  |         |        
|          | General and administrative              |            |         | 45,707                  |         |      |         | 43,193  |         |  |         | 42,205  |        
|          | Depreciation                            |            |         | 55,268                  |         |      |         | 55,268  |         |  |         | 59,485  |        
|          |                                         |            |         |                         |         |      |         |         |         |  |         |        
|          |                                         |            | 100,975 |                         |         |      | 98,461  |         |         |  | 101,690 |        
|          |                                         |            |         |                         |         |      |         |         |         |  |         |        
|          |                                         | Net income |         | $                       | 334,781 |      |         | $       | 340,628 |  |         | $       | 320,106 | 
|          |                                         |            |         |                         |         |      |         |         |         |  |         |        
|          | Net income per limited
partnership unit |            | $       | 2.00                    |         |      | $       | 2.04    |         |  | $       | 1.92    |        
|          |                                         |            |         |                         |         |      |         |         |         |  |         |        

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

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DEL TACO INCOME PROPERTIES IV

STATEMENT OF CHANGES IN PARTNERS EQUITY

Three years ended December 31, 2002

|                           |                    |  |                  |   |         |   |           |          |       |   |         |        |   |   |           |          |  
|-------------------------- | ------------------ |  | ---------------- | - | ------- | - | --------- | -------- | ----- | - | ------- | ------ | - | - | --------- | -------- | -
|                           |                    |  | Limited Partners |   |         |   |           |          |       |   |        
|                           |                    |  |                  |   | General |   |           |          |      
|                           |                    |  | Units            |   | Amount  |   | Partner   |          | Total
|                           |                    |  |                  |   |         |   |           |          |      
|Balance, December 31, 1999 |                    |  | 165,375          |   |         | $ | 2,045,087 |          |       | $ | (10,791 | )      |   | $ | 2,034,296 |         
|                           | Net income         |  |                  |  |         |   |           | 316,905  |       |   |         | 3,201  |   |   |           | 320,106  |  
|                           | Cash distributions |  |                  |  |         |   |           | (378,400 | )     |   |         | (3,822 | ) |   |           | (382,222 | )
|                           |                    |  |                  |   |         |   |           |          |       |   |         |        |   |   |           |         
|Balance, December 31, 2000 |                    |  | 165,375          |   |         |   | 1,983,592 |          |       |   | (11,412 | )      |   |   | 1,972,180 |         
|                           | Net income         |  |                  |  |         |   |           | 337,222  |       |   |         | 3,406  |   |   |           | 340,628  |  
|                           | Cash distributions |  |                  |  |         |   |           | (382,829 | )     |   |         | (3,867 | ) |   |           | (386,696 | )
|                           |                    |  |                  |   |         |   |           |          |       |   |         |        |   |   |           |         
|Balance, December 31, 2001 |                    |  | 165,375          |   |         |   | 1,937,985 |          |       |   | (11,873 | )      |   |   | 1,926,112 |         
|                           | Net income         |  |                  |  |         |   |           | 331,433  |       |   |         | 3,348  |   |   |           | 334,781  |  
|                           | Cash distributions |  |                  |  |         |   |           | (387,808 | )     |   |         | (3,917 | ) |   |           | (391,725 | )
|                           |                    |  |                  |   |         |   |           |          |       |   |         |        |   |   |           |         
|Balance, December 31, 2002 |                    |  | 165,375          |   |         | $ | 1,881,610 |          |       | $ | (12,442 | )      |   | $ | 1,869,168 |         
|                           |                    |  |                  |   |         |   |           |          |       |   |         |        |   |   |           |         

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

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DEL TACO INCOME PROPERTIES IV

STATEMENTS OF CASH FLOWS

|                                                                                  |                                                        |                                           |          |                         |         |      |          |        |         |   |          |        |         | 
|--------------------------------------------------------------------------------- | ------------------------------------------------------ | ----------------------------------------- | -------- | ----------------------- | ------- | ---- | -------- | ------ | ------- | - | -------- | ------ | ------- | 
|                                                                                  |                                                        |                                           |          | Year Ended December 31,
|                                                                                  |                                                        |                                           |          |                        
|                                                                                  |                                                        |                                           |          | 2002                    |         | 2001 |          | 2000  
|                                                                                  |                                                        |                                           |          |                         |         |      |          |       
|CASH FLOWS FROM OPERATING ACTIVITIES:                                             |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       
|Net income                                                                        |                                                        | $                                         | 334,781  |                         |         | $    | 340,628  |        |         | $ | 320,106  |       
|Adjustments to reconcile net income to net
cash provided by operating activities: |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       
|                                                                                  | Depreciation                                           |                                           |          | 55,268                  |         |      |          | 55,268 |         |   |          | 59,485 |        
|                                                                                  | Decrease (increase) in receivable from General Partner |                                           |          | 6,838                   |         |      |          | (3,330 | )       |   |          | 3,517  |        
|                                                                                  | (Increase) decrease in deposits                        |                                           |          | (110                    | )       |      |          | 76     |         |   |          | (76    | )      
|                                                                                  | Increase in payable to limited partners                |                                           |          | 1,145                   |         |      |          | 3,742  |         |   |          | 4,891  |        
|                                                                                  | (Decrease) increase in accounts payable                |                                           |          | (5,685                  | )       |      |          | (886   | )       |   |          | 2,718  |        
|                                                                                  |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       
|                                                                                  |                                                        | Net cash provided by operating activities |          |                         | 392,237 |      |          |        | 395,498 |   |          |        | 390,641 | 
|CASH FLOWS FROM FINANCING ACTIVITIES:                                             |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       
|Cash distributions to partners                                                    |                                                        |                                           | (391,725 | )                       |         |      | (386,696 | )      |         |   | (382,222 | )     
|                                                                                  |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       
|Net increase in cash                                                              |                                                        |                                           | 512      |                         |         |      | 8,802    |        |         |   | 8,419    |       
|Beginning cash balance                                                            |                                                        |                                           | 117,445  |                         |         |      | 108,643  |        |         |   | 100,224  |       
|                                                                                  |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       
|Ending cash balance                                                               |                                                        | $                                         | 117,957  |                         |         | $    | 117,445  |        |         | $ | 108,643  |       
|                                                                                  |                                                        |                                           |          |                         |         |      |          |        |         |   |          |       

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

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DEL TACO INCOME PROPERTIES IV

NOTES TO FINANCIAL STATEMENTS

December 31, 2002 and 2001

NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Partnership:Del Taco Income Properties IV (a California limited
partnership) was formed on March 23, 1987, for the purpose of acquiring real
property in California for construction of three Mexican-American restaurants
to be leased under long-term agreements to Del Taco, Inc. (General Partner for
operation under the Del Taco trade name).

Basis of Accounting:The partnership utilizes the accrual method of accounting
for transactions relating to the business of the partnership. Distributions are
made to the General and limited partners in accordance with the provisions of
the partnership agreement (see Note 2).

Property and Equipment:Property and equipment is stated at cost. Depreciation
is computed using the straight-line method over estimated useful lives which
are 20 years for land improvements, 35 years for buildings and improvements,
and 10 years for machinery and equipment.

The partnership accounts for property and equipment in accordance with
Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the
Impairment or Disposal of Long Lived Assets. SFAS 144 requires that
long-lived assets be reviewed for impairment whenever events or changes in
circumstances indicate that the carrying value of the asset may not be
recoverable. In evaluating long-lived assets held for use, an impairment loss
is recognized if the sum of the expected future cash flows (undiscounted and
without interest charges) is less than the carrying value of the asset. Once a
determination has been made that an impairment loss should be recognized for
long-lived assets, various assumptions and estimates are used to determine fair
value including, among others, estimated costs of construction and development,
recent sales of comparable properties and the opinions of fair value prepared
by independent real estate appraisers. Long-lived assets to be disposed of are
reported at the lower of carrying amount or fair value less cost to sell.

Recent Accounting Pronouncements:In August 2001, the FASB issued SFAS No.
144, Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS
No. 144 supersedes SFAS No. 121 and the accounting and reporting provisions of
Accounting Principles Board Opinion No. 30. It addresses financial accounting
and reporting for the impairment of long-lived assets to be disposed of. SFAS
No. 144 is effective for fiscal years beginning after December 15, 2001.
Management adopted SFAS No. 144 on January 1, 2002. The adoption of SFAS No.
144 did not have an impact on the Companys financial position or results of
operations.

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DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED
December 31, 2002 and 2001

NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued

Recent Accounting Pronouncements  Continued:In June 2002, the FASB issued
SFAS No. 146, Accounting for Costs Associated with Exit or Disposal
Activities (SFAS 146), which addresses financial accounting and reporting for
costs associated with exit or disposal activities and nullifies Emerging Issues
Task Force (EITF) Issue No. 94-3 Liability Recognition for Certain Employee
Terminations Benefits and Other Costs to Exit an Activity (including Certain
Costs Incurred in a Restructuring). SFAS 146 requires that a liability for a
cost associated with an exit or disposal activity be recognized when the
liability is incurred as opposed to the date of an entitys commitment to an
exit plan as required under EITF Issue No. 94-3. SFAS 146 also requires that
measurement of the liability associated with exit or disposal activities be at
fair value. SFAS 146 is effective for the Company for exit or disposal
activities that are initiated after December 31, 2002.

The adoption of this standard is not expected to have an impact on the
Companys financial position or results of operations.

Income Taxes:No provision has been made for federal or state income taxes on
partnership net income, since the partnership is not subject to income tax.
Partnership income is includable in the taxable income of the individual
partners as required under applicable income tax laws. Certain items,
primarily related to depreciation methods, are accounted for differently for
income tax reporting purposes (see Note 6).

Net Income Per Limited Partnership Unit:Net income per limited partnership
unit is calculated based upon 165,375 weighted average units outstanding in
2002, 2001 and 2000.

Use of Estimates:The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
certain estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.

Revenue Recognition:Revenue is recognized based on 12 percent of gross sales
of the restaurants which is recorded at the point of sale. Supplemental rent
is recognized when earned. Supplemental rent is calculated on an annual basis.
The amount of supplemental rent is the lesser of (a) the supplemental rental
rate of 14.6 percent times the aggregate property costs of $3,011,349, less 12
percent of gross sales, or (b) 50 percent of the aggregate pretax profit, less
general and administrative expenses (as defined) and 50 percent of the
franchise royalties paid (as defined).

Concentration of Risk:The three restaurants leased to Del Taco make up almost
all of the income producing assets of the partnership and contributed all of
the partnerships rent revenue for the three years ended December 31, 2002.
Therefore, the business of the partnership is almost entirely dependent on the
success of the Del Taco trade name restaurants that lease the properties.

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DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED
December 31, 2002 and 2001

NOTE 2  PARTNERS EQUITY

Pursuant to the partnership agreement, annual partnership net income or loss is
allocated one percent to the General Partner and 99 percent to the limited
partners. Partnership gains from any sale or refinancing will be allocated one
percent to the General Partner and 99 percent to the limited partners until
allocated gains and profits equal losses, distributions and syndication costs,
and until each class of limited partners receive their priority return as
defined in the partnership agreement. Additional gains will be allocated 12
percent to the General Partner and 88 percent to the limited partners.

NOTE 3  OBLIGATION TO GENERAL PARTNER

Under terms of the partnership agreement, the General Partner is entitled to
receive a fee in an amount equal to five percent of the gross proceeds of the
offering. The fee shall be for services rendered in connection with site
selection and the design and supervision of construction of improvements to
acquired properties. One percent of the gross proceeds of the offering has
been paid to the General Partner. The remaining four percent of this fee shall
be earned at the time the services are rendered, but shall not be paid and
shall be subordinated to the limited partners interests until all restaurants
have opened and the limited partners have received certain minimum returns on
their investment, as required by the partnership agreement. It is the policy
of the partnership to accrue the site selection and development fee as an
obligation to the General Partner. No fees were earned for such services
during 2002, 2001 and 2000.

NOTE 4  LEASING ACTIVITIES

The partnership leases certain properties for operation of restaurants to Del
Taco, Inc. on a triple net basis. The leases are for terms of 32 years
commencing with the completion of the restaurant facility located on each
property and require monthly rentals equal to 12 percent of the gross sales of
the restaurants. Supplemental rent (as defined in the partnership agreement)
may be earned if certain criteria are met. Supplemental rent was $73,552,
$81,964 and $78,174 for the years ended December 31, 2002, 2001 and 2000,
respectively. There is no minimum rental under any of the leases. The
partnership had a total of three properties leased to Del Taco as of December
31, 2002, 2001 and 2000 (Del Taco, in turn, has subleased one of the
restaurants to a Del Taco franchisee).

The two restaurants operated by Del Taco, for which the partnership is the
lessor, had combined, unaudited sales of $1,794,350, $1,802,525 and $1,782,786
and unaudited net income of $110,274, $114,936 and $111,954 for the years ended
December 31, 2002, 2001 and 2000, respectively. Net income by restaurant
includes charges for general and administrative expenses incurred in connection
with supervision of restaurant operations and interest expense. The one
restaurant operated by a Del Taco franchisee, for which the partnership is the
lessor, had unaudited sales of $1,197,960, $1,138,178 and $1,042,856 for the
years ended December 31, 2002, 2001 and 2000, respectively.

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DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED
December 31, 2002 and 2001

NOTE 5  RELATED PARTIES

The receivable from Del Taco consists of rent accrued for the month of December
2002 as well as supplemental rent. These amounts were collected on January 15,
2003.

The General Partner received $3,917 in distributions relating to its one
percent interest in the partnership for the year ended December 31, 2002.

Del Taco, Inc. serves in the capacity of General Partner in other partnerships
which are engaged in the business of operating restaurants, and three other
partnerships which were formed for the purpose of acquiring real property in
California for construction of Mexican-American restaurants for lease under
long-term agreements to Del Taco, Inc. for operation under the Del Taco trade
name.

The General Partner provides certain minimal managerial and accounting services
to the Partnership at no cost.

NOTE 6  INCOME TAXES

A reconciliation of financial statement net income to taxable income for each
of the periods is as follows:

|                                    |  |      |         |      |  |      |         |  |  |   |         | 
|----------------------------------- |  | ---- | ------- | ---- |  | ---- | ------- |  |  | - | ------- | 
|                                    |  | 2002 |         | 2001 |  | 2000
|                                    |  |      |         |      |  |     
|Net income per financial statements |  | $    | 334,781 |      |  | $    | 340,628 |  |  | $ | 320,106 | 
|Excess book depreciation            |  |      | 14,916  |      |  |      | 14,911  |  |  |   | 19,131  | 
|                                    |  |      |         |      |  |      |         |  |  |   |         | 
|Taxable income                      |  | $    | 349,697 |      |  | $    | 355,539 |  |  | $ | 339,237 | 
|                                    |  |      |         |      |  |      |         |  |  |   |         | 

A reconciliation of partnership equity per the financial statements to net
worth for tax purposes as of December 31, 2002, is as follows:

|                                                                      |  |   |           | 
|--------------------------------------------------------------------- |  | - | --------- | 
|Partners equity per financial statements                             |  | $ | 1,869,168 | 
|Issue costs of limited partnership units
capitalized for tax purposes |  |   | 579,259   | 
|Excess book depreciation                                              |  |   | 185,092   | 
|                                                                      |  |   |           | 
|Net worth for tax purposes                                            |  | $ | 2,633,519 | 
|                                                                      |  |   |           | 

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DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED
December 31, 2002 and 2001

NOTE 7  CASH DISTRIBUTIONS TO LIMITED PARTNERS

Cash distributions paid to limited partners for the three years ended December
31, 2002 were as follows:

|                   |                    |      |                     |             |                |         |                 |  |  |  |         |  | 
|------------------ | ------------------ | ---- | ------------------- | ----------- | -------------- | ------- | --------------- |  |  |  | ------- |  | 
|                   |                    |      | Cash                |             | Weighted       |         | Number of Units
|                   |                    |      | Distributions per   |             | Average Number |         | Outstanding at 
|                   |                    |      | Limited Partnership |             | of Units       |         | the End of     
|Quarter Ended      |                    | Unit |                     | Outstanding |                | Quarter
|                   |                    |      |                     |             |                |        
|December 31, 1999  |                    | $    | 0.45                |             |                |         | 165,375         |  |  |  | 165,375 | 
|March 31, 2000     |                    |      | 0.90                |             |                |         | 165,375         |  |  |  | 165,375 | 
|June 30, 2000      |                    |      | 0.41                |             |                |         | 165,375         |  |  |  | 165,375 | 
|September 30, 2000 |                    |      | 0.53                |             |                |         | 165,375         |  |  |  | 165,375 | 
|                   |                    |      |                     |             |                |         |                 |  |  |  |         | 
|                   | Total paid in 2000 |      | $                   | 2.29        |                |         |                 |  |  |  |         |  | 
|                   |                    |      |                     |             |                |         |                 |  |  |  |         | 
|December 31, 2000  |                    | $    | 0.48                |             |                |         | 165,375         |  |  |  | 165,375 | 
|March 31, 2001     |                    |      | 0.87                |             |                |         | 165,375         |  |  |  | 165,375 | 
|June 30, 2001      |                    |      | 0.44                |             |                |         | 165,375         |  |  |  | 165,375 | 
|September 30, 2001 |                    |      | 0.53                |             |                |         | 165,375         |  |  |  | 165,375 | 
|                   |                    |      |                     |             |                |         |                 |  |  |  |         | 
|                   | Total paid in 2001 |      | $                   | 2.32        |                |         |                 |  |  |  |         |  | 
|                   |                    |      |                     |             |                |         |                 |  |  |  |         | 
|December 31, 2001  |                    | $    | 0.51                |             |                |         | 165,375         |  |  |  | 165,375 | 
|March 31, 2002     |                    |      | 0.85                |             |                |         | 165,375         |  |  |  | 165,375 | 
|June 30, 2002      |                    |      | 0.47                |             |                |         | 165,375         |  |  |  | 165,375 | 
|September 30, 2002 |                    |      | 0.52                |             |                |         | 165,375         |  |  |  | 165,375 | 
|                   |                    |      |                     |             |                |         |                 |  |  |  |         | 
|                   | Total paid in 2002 |      | $                   | 2.35        |                |         |                 |  |  |  |         |  | 
|                   |                    |      |                     |             |                |         |                 |  |  |  |         | 

Cash distributions per limited partnership unit were calculated based upon the
weighted average number of units outstanding for each quarter and were paid
from operations. Cash distributions for the quarter ended December 31, 2002
amounted to $.50 per limited partnership unit and were paid January 30, 2003.

NOTE 8  RESULTS BY QUARTER (UNAUDITED)

|                              |                                         |  |         |        |         |  |         |        |         |  |   |        |  |  |   |         | 
|----------------------------- | --------------------------------------- |  | ------- | ------ | ------- |  | ------- | ------ | ------- |  | - | ------ |  |  | - | ------- | 
|                              |                                         |  | First   |        | Second  |  | Third   |        | Fourth 
|                              |                                         |  | Quarter |        | Quarter |  | Quarter |        | Quarter
|                              |                                         |  |         |        |         |  |         |        |        
|Year ended December 31, 2002: |                                         |  |         |        |         |  |         |        |         |  |   |        |  |  |   |        
|                              | Revenues                                |  | $       | 86,074 |         |  | $       | 91,533 |         |  | $ | 91,806 |  |  | $ | 166,343 | 
|                              | Net income                              |  |         | 50,964 |         |  |         | 66,540 |         |  |   | 71,769 |  |  |   | 145,508 | 
|                              | Net income per limited partnership
unit |  |         | 0.31   |         |  |         | 0.40   |         |  |   | 0.43   |  |  |   | 0.86    | 
|Year ended December 31, 2001: |                                         |  |         |        |         |  |         |        |         |  |   |        |  |  |   |        
|                              | Revenues                                |  | $       | 83,070 |         |  | $       | 89,737 |         |  | $ | 95,744 |  |  | $ | 170,538 | 
|                              | Net income                              |  |         | 49,024 |         |  |         | 65,766 |         |  |   | 75,962 |  |  |   | 149,876 | 
|                              | Net income per limited partnership
unit |  |         | 0.29   |         |  |         | 0.39   |         |  |   | 0.45   |  |  |   | 0.91    | 

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Item 9. Disagreements on Accounting and Financial Disclosure

None




PART III




Item 10. Directors and Executive Officers of the Partnerships General Partner



|(a) & (b) |  | The executive officers and directors of the General Partner and their
ages are set forth below:
|--------- |  | -----------------------------------------------------------------------------------------------

|                     |  |                                                      |  |     |    | 
|-------------------- |  | ---------------------------------------------------- |  | --- | -- | 
|Name                 |  | Title                                                |  | Age
|                     |  |                                                      |  |    
|Kevin K. Moriarty    |  | Director, Chairman and Chief Executive Officer       |  |     | 56 | 
|C. Ronald Petty      |  | President                                            |  |     | 58 | 
|Robert J. Terrano    |  | Executive Vice President and Chief Financial Officer |  |     | 47 | 
|James D. Stoops      |  | Executive Vice President, Operations                 |  |     | 50 | 
|Janet D. Erickson    |  | Executive Vice President, Purchasing                 |  |     | 46 | 
|Shirlene Lopez       |  | Executive Vice President, Operations Services        |  |     | 38 | 
|Michael L. Annis     |  | Vice President, Secretary and General Counsel        |  |     | 56 | 
|Timothy A. Hackbardt |  | Vice President, Marketing                            |  |     | 39 | 

The above referenced executive officers and directors of the General Partner
will hold office until the annual meeting of its shareholders and directors,
which is scheduled for the later part of 2003.



|(c) |  | None                                                                                                                          
|--- |  | ------------------------------------------------------------------------------------------------------------------------------
|   
|(d) |  | No family relationship exists between any such director or executive
officer of the General Partner.                          
|   
|(e) |  | The following is an account of the business experience during the past
five years of each such director and executive officer:

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Kevin K. Moriarty, Director, Chairman and Chief Executive Officer of Del Taco,
Inc. Mr. Moriarty began his career with Burger King Corporation in 1974 in
Operations Unit Management. In 1983, he was promoted to Area Manager in New
York, and was subsequently promoted to the Regional Vice President, Chicago
Region in 1985. In 1988, he became Executive Vice President and General
Manager of the North Central Division. Mr. Moriarty served in that position
until 1990 when he joined Del Taco, Inc. as President and Chief Executive
Officer on July 31, 1990. Mr. Moriarty has served as a Director of the General
Partner since 1990.

C. Ronald Petty, President of Del Taco, Inc. Mr. Petty began his career in the
restaurant business in 1973 with McDonalds Corporation. He was employed by
McDonalds in a real estate capacity until 1978. For the next 12 years, Mr.
Petty was in various officer positions with Burger King. These positions
included Vice President of Real Estate, Sr. Vice President of Development,
Region Vice President, Sr. Vice President European Operations, President of
International and President of U.S. Mr. Petty served as President of Miami
Subs from 1990-1992; President and CEO of Dennys 1993-1996; President and CEO
of Peter Piper Pizza 1996-2000; President of Del Taco December 2000-present.

Robert J. Terrano, Executive Vice President and Chief Financial Officer of Del
Taco, Inc. From May 1994 to April 1995, Mr. Terrano served as Chief Financial
Officer for Dennys, Inc. in Spartanburg, S.C. From August 1983 to May 1994,
he served with Burger King Corporation, Miami Florida, in a variety of
positions, most recently as Division Controller. Mr. Terrano joined Del Taco,
Inc. in April 1995.

James D. Stoops, Executive Vice President, Operations of Del Taco, Inc. From
1968 to 1991, Mr. Stoops served in a wide variety of Operations positions with
Burger King Corporation with increasing levels of responsibility. In 1985, Mr.
Stoops was appointed Region Vice President/General Manager for the New York
region and served in that position until October of 1990. In January of 1991,
he joined Del Taco, Inc. in his current post.

Janet D. Erickson, Executive Vice President, Purchasing of Del Taco, Inc. From
1979 to 1986, Ms. Erickson was with Dennys Inc. She served in the Research
and Development department in a variety of positions until 1982 when she was
promoted to the position of Purchasing Agent. Ms. Erickson was hired in 1986
as Manager of Contract Purchasing with Carl Karcher Enterprises, a post she
held until March 1990 when she became Vice President, Purchasing for Del Taco,
Inc. Ms. Erickson has a Bachelor of Science degree in Foods and Nutrition from
Cal State Polytechnic University in Pomona, California.

Shirlene Lopez, Executive Vice President, Operations Services of Del Taco, Inc.
Ms. Lopez began her career with Del Taco in 1978 as an hourly employee and
advanced through the ranks to General Manager in 1984. Ms. Lopez was promoted
to the corporate office in 1989 as Human Resource Manager. In 1994, she was
promoted to Executive Project Manager reporting to the CEO and in 1996, to
Director of Corporate Development in charge of all interior image and design
and in 1997, to Vice President, Corporate Development & Design. Ms. Lopez has
held her current position since February 2002.

21



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Michael L. Annis, Vice President, Secretary and General Counsel of Del Taco,
Inc. From 1981 to 1986 Mr. Annis served as Regional Real Estate Manager and
Director of Real Estate Services with Taco Bell, Inc. In 1986 he served as
Regional General Manager with Quaker State Minit Lube. In January of 1987 Mr.
Annis joined Red Robin International, Inc. as General Counsel and was
subsequently promoted to Vice President/Secretary and later Vice President Real
Estate Development/Secretary and General Counsel, the position he held until
joining Del Taco, Inc. in December of 1993. Mr. Annis received his J.D. Degree
from Whittier College.

Timothy A. Hackbardt, Vice President, Marketing of Del Taco, Inc. Mr.
Hackbardt joined Del Taco, Inc. in November 2001. From November 1995 to
November 2001, he served as Vice President of Marketing of Taco Time
International, Inc., Eugene, OR. From September 1994 to November 1995, Mr.
Hackbardt was Director of Marketing for Wok Spirit Chinese Delivery restaurants
in Newport Beach, CA. From December 1992 to September 1994, Mr. Hackbardt was
Director of Marketing for Fosters Freeze International, Inc., San Luis Obispo,
CA. Prior to then, Mr. Hackbardt held various positions in the television and
radio industry in sales and sales management. Mr. Hackbardt is a graduate of
Central Michigan University where he received a Bachelor of Applied Arts,
majoring in Broadcast and Cinematic Arts and minoring in Marketing.




Item 11. Management Remuneration and Transactions

The partnership has no executive officers or directors and pays no direct
remuneration to any executive officer or director of its General Partner. The
partnership has not issued any options or stock appreciation rights to any
executive officer or director of its General Partner, nor does the partnership
propose to pay any annuity, pension or retirement benefits to any executive
officer or director of its General Partner. The partnership has no plan, nor
does the partnership presently propose a plan, which will result in any
remuneration being paid to any executive officer or director of the General
Partner upon termination of employment.




Item 12. Security Ownership of Certain Beneficial Owners and Management



|(a) |  | No person of record currently owns more than five percent of limited
partnership units of the partnership, nor was any person known of by the
partnership to own of record and beneficially, or beneficially only, more
than five percent of such securities.                                                                                                                                                                  
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(b) |  | Neither Del Taco, Inc., nor any executive officer or director of Del
Taco, Inc. owns any limited partnership units of the partnership.                                                                                                                                                                                                                                                                                         
|   
|(c) |  | The partnership knows of no contractual arrangements, the operation or
the terms of which may at a subsequent date result in a change in control
of the partnership, except for provisions in the partnership agreement
providing for removal of the General Partner by holders of a majority of
the limited partnership units and if a material event of default occurs
under the financing agreements of the General Partner.

22



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##### Table of Contents






Item 13. Certain Relationships and Related Transactions



|(a) |  | No transactions have occurred between the partnership and any executive
officer or director of its General Partner.                                 
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | During 2002, the following transactions occurred between the partnership
and the General Partner pursuant to the terms of the partnership
agreement.



| | (1) |  | The General Partner earned $3,348 as its one percent share of
the net income of the partnership.             
| | --- |  | -------------------------------------------------------------------------------------------------------------
|
| | (2) |  | The General Partner received $3,917 in distributions relating
to its one percent interest in the partnership.



|(b) |  | During 2002, the partnership had no business relationships with any
entity of a type required to be reported under this item.                                                                                
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(c) |  | Neither the General Partner, any director or officer of the General
Partner or any associate of any such person, was indebted to the
partnership at any time during 2002 for any amount in excess of $60,000.
|   
|(d) |  | Not applicable.                                                                                                                                                                                              




Item 14. Controls and Procedures

There were no significant changes in the partnerships internal control or
other factors that could significantly affect these controls subsequent to
February 28, 2003, the date the partnerships evaluation of them.

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PART IV




Item 15. Exhibits, Financial Statements Schedules, and Reports on Form 8-K



|(a)(1) |  | Financial Statements                                                                                                                                
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------
|      
|       |  | Included in Part II of this report:                                                                                                                 
|      
|       |  | Report of Independent Public Accountants
Balance Sheets
Statements of Income
Statements of Changes in Partners Equity
Notes to Financial Statements
|      
|(a)(2) |  | Financial Statement Schedules                                                                                                                       
|      
|       |  | Report of Independent Public Accountants on Financial Statement Schedule
Schedule III  Real Estate and Accumulated Depreciation                    
|      
|       |  | Financial statement schedules other than those referred to above have
been omitted because they are not applicable or not required.                 
|      
|(b)    |  | Reports on Form 8K                                                                                                                                  
|      
|       |  | No reports on Form 8-K were filed during the last quarter of 2002.                                                                                  
|      
|(c)    |  | Exhibits required by Item 601 of Regulation S-K:                                                                                                    



| | 1.   |  | Incorporated herein by reference, Restated Agreement of Limited
Partnership of Del Taco Income Properties IV filed as Exhibit 3.01 to
Partnerships Registration Statement on Form S-11 as filed with the
Securities and Exchange Commission on June 5, 1987.              
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2.   |  | Incorporated herein by reference, Amendment to Restated
Agreement of Limited Partnership of Del Taco Income Properties IV.                                                                                                                                                 
|
| | 3.   |  | Incorporated herein by reference, Form of Standard Lease to be
entered into by Partnership and Del Taco, Inc., as lessee, filed as
Exhibit 10.02 to Partnerships Registration Statement on Form S-11 as
filed with the Securities and Exchange Commission on June 5, 1987.
|
| | 99.1 |  | Kevin K. Moriartys Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                
|
| | 99.2 |  | Robert J. Terranos Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                
|
| | 99.3 |  | Certification Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002                                                                                                                                                                                                    

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REPORT OF INDEPENDENT ACCOUNTANTS ON
FINANCIAL STATEMENT SCHEDULE

To the Partners of
Del Taco Income Properties IV:

Our audit of the financial statements referred to in our report dated January
22, 2003 appearing in this Annual Report on Form 10-K also included an audit of
the financial statement schedule listed in Item 15(a)(2) of this Form 10-K. In
our opinion, this financial statement schedule presents fairly, in all material
respects, the information set forth therein when read in conjunction with the
related financial statements.

PricewaterhouseCoopers LLP
Orange County, California
January 22, 2003

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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

The following report is a copy of the report previously issued by Arthur
Andersen LLP and has not been reissued by Arthur Andersen LLP.

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Partners of
Del Taco Income Properties, IV:

We have audited the accompanying balance sheets of Del Taco Income Properties IV
(a California Limited Partnership) as of December 31, 2001 and 2000, and the
related statements of income, partners equity and cash flows for each of the
three years in the period ended December 31, 2001. These financial statements
and the schedule referred to below are the responsibility of the Partnerships
management. Our responsibility is to express an opinion on these financial
statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the 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 financial statements referred to above present
fairly, in all material respects, the financial position of Del Taco Income
Properties IV as of December 31, 2001 and 2000, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2001 in conformity with accounting principles generally accepted in
the United States.

In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial
position of Del Taco Income Properties IV as of
December 31, 2001 and 2000, and the results of its operations
and its cash flows for each of the three years in the period ended
December 31, 2001 in conformity with accounting principles
generally accepted in the United States.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Real Estate and Accumulated
Depreciation Schedule III is presented for purposes of complying with the
Securities and Exchange Commissions rules and is not part of the basic
financial statements. This schedule has been subjected to the auditing
procedures applied in our audits of the basic financial statements and, in our
opinion, fairly states in all material respects the financial data required to
be set forth therein in relation to the basic financial statements taken as a
whole.

-s- Arthur Andersen

Orange County, California
February 15, 2002

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DEL TACO INCOME PROPERTIES IV  SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2002



|                   |  |              |   |            |  |              |           |                 |  |                  |           |              |  |                   |   |                 |  |   |           | 
|------------------ |  | ------------ | - | ---------- |  | ------------ | --------- | --------------- |  | ---------------- | --------- | ------------ |  | ----------------- | - | --------------- |  | - | --------- | 
|                   |  |              |   |            |  |              |           |                 |  |                  |           |              |  | Cost capitalized  |   | Gross amount at
|                   |  |              |   |            |  | Initial cost |           | subsequent to   |  | which carried at
|Description        |  | Encumbrances |   | to company |  | acquisition  |           | close of period
|                   |  |              |   |            |  |              |           |                
|                   |  |              |   |            |  | Land         |           | Buildings &     |  |                  |           |              |  | Land, buildings &
|                   |  |              |   |            |  | & land       |           | Improve-        |  | Carrying         |           | improvements
|(All Restaurants)  |  |              |   |            |  | improvements |           | ments           |  | costs            |           | Total       
|                   |  |              |   |            |  |              |           |                 |  |                  |           |             
|Placentia, CA      |  | $            |  |            |  | $            | 465,933   |                 |  | $                | 485,961   |              |  | $                 |  |                 |  | $ | 951,894   | 
|Lake Elsinore, CA  |  |              |  |            |  |              | 449,058   |                 |  |                  | 468,361   |              |  |                   |  |                 |  |   | 917,419   | 
|San Bernardino, CA |  |              |  |            |  |              | 321,709   |                 |  |                  | 335,538   |              |  |                   |  |                 |  |   | 657,247   | 
|                   |  |              |   |            |  |              |           |                 |  |                  |           |              |  |                   |   |                 |  |   |           | 
|                   |  | $            |  |            |  | $            | 1,236,700 |                 |  | $                | 1,289,860 |              |  | $                 |  |                 |  | $ | 2,526,560 | 
|                   |  |              |   |            |  |              |           |                 |  |                  |           |              |  |                   |   |                 |  |   |           | 

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                   |  |              |         |              |  |          |      |                  |  |  |      |  |  |                        |  | 
|------------------ |  | ------------ | ------- | ------------ |  | -------- | ---- | ---------------- |  |  | ---- |  |  | ---------------------- |  | 
|Description        |  |              |         |              |  |          |      |                  |  |  |      |  |  |                       
|                   |  |              |         |              |  |          |      |                  |  |  |      |  |  | Life on which         
|                   |  |              |         |              |  |          |      |                  |  |  |      |  |  | depreciation in latest
|                   |  | Accumulated  |         | Date of      |  | Date     |      | income statement
|(All Restaurants)  |  | depreciation |         | construction |  | acquired |      | is computed     
|                   |  |              |         |              |  |          |      |                 
|Placentia, CA      |  | $            | 267,452 |              |  |          | 1988 |                  |  |  | 1988 |  |  | 20 (LI), 35 (BI)      
|Lake Elsinore, CA  |  |              | 257,767 |              |  |          | 1989 |                  |  |  | 1989 |  |  | 20 (LI), 35 (BI)      
|San Bernardino, CA |  |              | 184,658 |              |  |          | 1989 |                  |  |  | 1989 |  |  | 20 (LI), 35 (BI)      
|                   |  |              |         |              |  |          |      |                  |  |  |      |  |  |                        |  | 
|                   |  | $            | 709,877 |              |  |          |      |                  |  |  |      |  |  |                        |  | 
|                   |  |              |         |              |  |          |      |                  |  |  |      |  |  |                        |  | 

|                               |             |   |             |   |              |   |             |        | 
|------------------------------ | ----------- | - | ----------- | - | ------------ | - | ----------- | ------ | 
|                               |             |   |             |   |              |   | Accumulated
|                               |             |   | Restaurants |   | Depreciation
|                               |             |   |             |   |             
|Balances at December 31, 1999: |             | $ | 2,526,560   |   |              | $ | 544,073     |       
|                               | Additions   |   |             |  |              |   |             | 55,268 | 
|                               | Retirements |   |             |  |              |   |             |       | 
|                               |             |   |             |   |              |   |             |       
|Balances at December 31, 2000: |             |   | 2,526,560   |   |              |   | 599,341     |       
|                               | Additions   |   |             |  |              |   |             | 55,268 | 
|                               | Retirements |   |             |  |              |   |             |       | 
|                               |             |   |             |   |              |   |             |       
|Balances at December 31, 2001: |             |   | 2,526,560   |   |              |   | 654,609     |       
|                               | Additions   |   |             |  |              |   |             | 55,268 | 
|                               | Retirements |   |             |  |              |   |             |       | 
|                               |             |   |             |   |              |   |             |       
|Balances at December 31, 2002: |             | $ | 2,526,560   |   |              | $ | 709,877     |       
|                               |             |   |             |   |              |   |             |       

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SIGNATURES

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

|                    |  |                                                      | 
|------------------- |  | ---------------------------------------------------- | 
|                    |  | DEL TACO INCOME PROPERTIES IV                       
|                    |  | a California limited partnership                    
|                    |  |                                                     
|                    |  | Del Taco, Inc.                                      
|                    |  | General Partner                                     
|                    |  |                                                     
|Date March 07, 2003 |  | Kevin K. Moriarty                                   
|                    |  |                                                     
|                    |  | Kevin K. Moriarty                                   
|                    |  | Director, Chairman and Chief
Executive Officer      
|                    |  |                                                     
|Date March 07, 2003 |  | Michael L. Annis                                    
|                    |  |                                                     
|                    |  | Michael L. Annis                                    
|                    |  | Vice President, Secretary and
General Counsel       
|                    |  |                                                     
|Date March 07, 2003 |  | Robert J. Terrano                                   
|                    |  |                                                     
|                    |  | Robert J. Terrano                                   
|                    |  | Executive Vice President and
Chief Financial Officer

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EXHIBIT INDEX

|         |  |                                                                                                                                                                                                                                                                            
|-------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibits |  | Description                                                                                                                                                                                                                                                                
|         |  |                                                                                                                                                                                                                                                                            
|1.       |  | Incorporated herein by reference, Restated Agreement of Limited
Partnership of Del Taco Income Properties IV filed as Exhibit 3.01 to
Partnerships Registration Statement on Form S-11 as filed with the
Securities and Exchange Commission on June 5, 1987.              
|        
|2.       |  | Incorporated herein by reference, Amendment to Restated
Agreement of Limited Partnership of Del Taco Income Properties IV.                                                                                                                                                 
|        
|3.       |  | Incorporated herein by reference, Form of Standard Lease to be
entered into by Partnership and Del Taco, Inc., as lessee, filed as
Exhibit 10.02 to Partnerships Registration Statement on Form S-11 as
filed with the Securities and Exchange Commission on June 5, 1987.
|        
|99.1     |  | Kevin K. Moriartys Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                
|        
|99.2     |  | Robert J. Terranos Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                
|        
|99.3     |  | Certification Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002