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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


For the fiscal year ended December 31,
2003

OR



|     |                                                         
|---- | --------------------------------------------------------
|[  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934


For the transition period from

to

Commission file 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.

Indicate by check mark whether the registrant is
an accelerated filer (as defined in Rule 12b-2 of the
Exchange
Act).     Yes      No
X



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TABLE OF CONTENTS  PART IItem 1. BusinessItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Submissions of Matters to a Vote of Security HoldersPART IIItem 5. Market for the Partnerships Common Equity and Related Security Holder MattersItem 6. Selected Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial StatementsPART I. INFORMATIONINDEPENDENT AUDITORS REPORTReport of Independent AccountantsReport of Independent Public AccountantsBALANCE SHEETSSTATEMENTS OF INCOMESTATEMENTS OF PARTNERS EQUITYSTATEMENTS OF CASH FLOWSNOTES TO FINANCIAL STATEMENTSItem 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresPART IIIItem 10. Directors and Executive Officers of the Partnerships General PartnerItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Security Holder MattersItem 13. Certain Relationships and Related TransactionsItem 14. Principal Accountant Fees and ServicesPART IVItem 15. Exhibits, Financial Statements Schedules, and Reports on Form 8-KSIGNATURESEXHIBIT INDEXEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1    Table of Contents  
 PART I 
 Item 1. Business Del Taco Income Properties IV, (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
(Del Taco or the 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. The Partnership acquired land and constructed three
Mexican-American restaurants for long-term lease to Del Taco. 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, 2003, 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 ofDate of
    
    Restaurant
    
    Commencement ofAddress
    
    City, State
    
    Acquisition
    
    Constructed
    
    Operation (1)Orangethorpe
Avenue
    
    Placentia, CA
    
    August 5, 1988
    
    60 seat with drive
through service
window
    
    March 27, 1989Lakeshore
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
    
    July 13, 1990through service
window
  (1)
    
    Commencement of operation is the first date Del Taco, as lessee, operated
the facility on the site as a Del Taco restaurant.(2)
    
    The restaurant is subleased to a franchisee of Del Taco 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 307 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, 2003, 2002, 2001, 2000 and 1999, has been derived from the audited
financial statements and should be read in conjunction with the financial
statements and related notes and Item 7. For the Year Ended December 31,2003
    
    2002
    
    2001
    
    2000
    
    1999Rental revenues
    
    $
    439,657
    
    
    $
    432,629
    
    
    $
    434,848
    
    
    $
    417,251
    
    
    $
    401,101General and administrative
expense
    
    
    62,441
    
    
    
    45,707
    
    
    
    43,193
    
    
    
    42,205
    
    
    
    42,347Depreciation expense
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268
    
    
    
    59,485
    
    
    
    103,381Interest and other income
    
    
    1,858
    
    
    
    3,127
    
    
    
    4,241
    
    
    
    4,545
    
    
    
    3,223Net income
    
    
    323,806
    
    
    
    334,781
    
    
    
    340,628
    
    
    
    320,106
    
    
    
    258,596Net income per limited
partnership unit
    
    
    1.94
    
    
    
    2.00
    
    
    
    2.04
    
    
    
    1.92
    
    
    
    1.55Cash distributions per
limited partnership unit
    
    
    2.34
    
    
    
    2.35
    
    
    
    2.32
    
    
    
    2.29
    
    
    
    2.16Total assets
    
    
    1,975,153
    
    
    
    2,039,717
    
    
    
    2,101,201
    
    
    
    2,144,413
    
    
    
    2,198,920Long-term obligations
    
    
    137,953
    
    
    
    137,953
    
    
    
    137,953
    
    
    
    137,953
    
    
    
    137,953
 
 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 all of the income producing
assets of the Partnership. Therefore, the business of the Partnership is
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 were 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 revenues earned by restaurant for the
year: Year Ended December 31,2003
    
    2002
    
    2001Orangethorpe Ave., Placentia, CA
    
    $
    175,288
    
    
    $
    171,135
    
    
    $
    176,284Lakeshore Drive, Lake Elsinore, CA
    
    
    174,899
    
    
    
    173,201
    
    
    
    168,305Highland Ave., San Bernardino, CA
    
    
    89,470
    
    
    
    88,293
    
    
    
    90,259Total
    
    $
    439,657
    
    
    $
    432,629
    
    
    $
    434,848
 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 revenues of $439,657 during the year
ended December 31, 2003, which represents an increase of $7,028 from 2002. The
increase in rental revenues was caused primarily by an increase in sales at the
restaurants under lease. The Partnership earned rental revenues of $432,629
during the year ended December 31, 2002, which represents a decrease of $2,219
from 2001. The decrease in rental revenues was caused primarily by a decrease
in the amount of supplemental rent. Supplemental rent was $50,599, $73,552 and
$81,964 for the years ended December 31, 2003, 2002 and 2001, 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 & Administrative Expense Year Ended December 31,2003
    
    2002
    
    2001Accounting fees
    
    
    57.29
    %
    
    
    65.32
    %
    
    
    65.16
    %Distribution of information
to limited partners
    
    
    41.30
    
    
    
    32.93
    
    
    
    32.99Other
    
    
    1.41
    
    
    
    1.75
    
    
    
    1.85100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
 General and administrative costs increased by $16,734 from 2002 to 2003. The
increase was caused primarily by increased costs for income tax preparation,
annual audit fees, accounting services and printing and mailing costs, as well
as additional incremental costs incurred to change auditors and maintain
regulatory compliance standards required of public registrants. 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. Net income decreased by $10,975 from 2002 to 2003 due to the increase in
general and administrative expenses of $16,734, the decrease in other income of
$1,269, offset by the increase in revenues of $7,028. Depreciation expense was
the same in both 2003 and 2002. Net income decreased by $5,847 from 2001 to 2002 due to the increase in general
and administrative expenses of $2,514, the decrease in other income of $1,114
and the decrease in revenues of $2,219. Recent Accounting Pronouncements In November 2002, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 45, Guarantors Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others
(Interpretation 45), an interpretation of FASB Statements No. 5, 57 and 107
and rescission of FASB Interpretation No. 34. Interpretation 45 elaborates on
the disclosures to be made by a guarantor in its interim and annual financial
statements about its obligations under certain guarantees that it has issued.
It also clarifies that a guarantor is required to recognize, at the inception
of a guarantee, a liability
for the fair value of the obligation undertaken in issuing the guarantee.
Interpretation 45s initial recognition and initial measurement provisions are
effective on a prospective basis to guarantees issued or modified after
December 31, 2002. 6




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Item 7. Managements Discussion and Analysis of Financial Condition
and Results of Operations (Continued) Recent Accounting Pronouncements  (continued) The disclosure requirements are effective for financial statements of interim
or annual periods ending after December 15, 2002. The Company adopted the
disclosure requirements of Interpretation 45 effective December 31, 2002 and
has not entered into any guarantees since December 31, 2002. In January 2003, the FASB issued Interpretation No. 46, Consolidation of
Variable Interest Entities (Interpretation 46), an interpretation of
Accounting Research Bulletin (ARB) No. 51. Interpretation 46, as amended,
addresses consolidation by business enterprises of variable interest entities.
Interpretation 46, as amended, applies immediately to variable interest
entities created after January 31, 2003, and to variable interest entities in
which an enterprise obtains an interest after that date. It applies in the
first year or interim period beginning after December 15, 2003, to variable
interest entities in which an enterprise holds a variable interest that it
acquired before February 1, 2003. In December 2003, the FASB issued
Interpretation No. 46R which modified certain provisions of Interpretation 46.
Interpretation No. 46R also modified the effective date of Interpretation 46.
Companies must apply Interpretation No. 46R by the end of the first reporting
period after December 15, 2003. The Company believes it has no variable
interest entities to which Interpretation 46 nor Interpretation No. 46R would
apply. 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 Partnerships 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. 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 No. (SFAS) 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 NUMBERIndependent Auditors Report
    
    
    9Report of Independent Accountants
    
    
    10Report of Independent Public Accountants
    
    
    11Balance Sheets at December 31, 2003 and 2002
    
    
    12Statements of Income for the years ended
December 31, 2003, 2002 and 2001
    
    
    13Statements
of Partners Equity for
the years ended December 31, 2003, 2002 and 2001
    
    
    14Statements of Cash Flows for the years ended
December 31, 2003, 2002 and 2001
    
    
    15Notes to Financial Statements
    
    
    16-20
 8




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(KPMG LETTERHEAD) 
 INDEPENDENT AUDITORS REPORT To the Partners of
Del Taco Income Properties IV: We have audited the accompanying balance sheet of Del Taco Income Properties IV
(a California Limited Partnership) as of December 31, 2003, and the related
statements of income, partners equity and cash flows for the year then ended.
In connection with our audit of the financial statements, we have also audited
the 2003 information in the accompanying financial statement schedule. These
financial statements and financial statement schedule are the responsibility of
the Partnerships management. Our responsibility is to express an opinion on
the financial statements and financial statement schedule based on our audit. We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. 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 audit provides a
reasonable basis for our opinion. In our opinion, the 2003 financial statements referred to above present fairly,
in all material respects, the financial position of Del Taco Income Properties
IV as of December 31, 2003 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. Also, in our opinion, the 2003
information in the related financial statement schedule, when considered in
relation to the basic financial statements taken as a whole, presents fairly,
in all material respects, the information set forth therein. (-s- KPMG LLP) Orange County, California
February 13, 2004 9




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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 for the year 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)
PricewaterhouseCoopers LLP
Orange County, California
January 22, 2003 10




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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 ACCOUNTANTSTo 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.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.(ARTHUR ANDERSEN LLP)
Orange County, California
February 15, 2002 11




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DEL TACO INCOME PROPERTIES IV 
 BALANCE SHEETS December 31,2003
    
    2002ASSETSCURRENT ASSETS:Cash
    
    $
    127,447
    
    
    $
    117,957Receivable from Del Taco, Inc.
    
    
    85,847
    
    
    
    104,597Deposits
    
    
    474
    
    
    
    510Total current assets
    
    
    213,768
    
    
    
    223,064PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,236,700
    
    
    
    1,236,700Buildings and improvements
    
    
    1,289,860
    
    
    
    1,289,860Machinery and equipment
    
    
    484,789
    
    
    
    484,7893,011,349
    
    
    
    3,011,349Lessaccumulated depreciation
    
    
    1,249,964
    
    
    
    1,194,6961,761,385
    
    
    
    1,816,653$
    1,975,153
    
    
    $
    2,039,717LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    31,690
    
    
    $
    29,087Accounts payable
    
    
    3,035
    
    
    
    3,509Total current liabilities
    
    
    34,725
    
    
    
    32,596OBLIGATION TO GENERAL PARTNER
    
    
    137,953
    
    
    
    137,953PARTNERS EQUITY:Limited partners
    
    
    1,815,584
    
    
    
    1,881,610General partner-Del Taco, Inc.
    
    
    (13,109
    )
    
    
    (12,442
    )1,802,475
    
    
    
    1,869,168$
    1,975,153
    
    
    $
    2,039,717
 See accompanying notes to financial statements. 12




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DEL TACO INCOME PROPERTIES IV 
 STATEMENTS OF INCOME Year Ended December 31,2003
    
    2002
    
    2001RENTAL REVENUES:
    
    $
    439,657
    
    
    $
    432,629
    
    
    $
    434,848EXPENSES:General and administrative
    
    
    62,441
    
    
    
    45,707
    
    
    
    43,193Depreciation
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268Operating income
    
    
    321,948
    
    
    
    331,654
    
    
    
    336,387OTHER INCOME:Interest
    
    
    1,258
    
    
    
    1,702
    
    
    
    3,666Other
    
    
    600
    
    
    
    1,425
    
    
    
    575Net income
    
    $
    323,806
    
    
    $
    334,781
    
    
    $
    340,628Net income per limited
partnership unit
    
    $
    1.94
    
    
    $
    2.00
    
    
    $
    2.04Number of units used in computing
per unit amounts
    
    
    165,375
    
    
    
    165,375
    
    
    
    165,375
 See accompanying notes to financial statements. 13




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DEL TACO INCOME PROPERTIES IV 
 STATEMENTS OF PARTNERS EQUITY Years ended
December 31, 2003, 2002 and 2001 Limited PartnersGeneralUnits
    
    Amount
    
    Partner
    
    TotalBalance, December 31, 2000
    
    
    165,375
    
    
    $
    1,983,592
    
    
    $
    (11,412
    )
    
    $
    1,972,180Net income
    
    
    
    
    
    
    337,222
    
    
    
    3,406
    
    
    
    340,628Cash distributions
    
    
    
    
    
    
    (382,829
    )
    
    
    (3,867
    )
    
    
    (386,696
    )Balance, December 31, 2001
    
    
    165,375
    
    
    
    1,937,985
    
    
    
    (11,873
    )
    
    
    1,926,112Net income
    
    
    
    
    
    
    331,433
    
    
    
    3,348
    
    
    
    334,781Cash distributions
    
    
    
    
    
    
    (387,808
    )
    
    
    (3,917
    )
    
    
    (391,725
    )Balance, December 31, 2002
    
    
    165,375
    
    
    
    1,881,610
    
    
    
    (12,442
    )
    
    
    1,869,168Net income
    
    
    
    
    
    
    320,568
    
    
    
    3,238
    
    
    
    323,806Cash distributions
    
    
    
    
    
    
    (386,594
    )
    
    
    (3,905
    )
    
    
    (390,499
    )Balance, December 31, 2003
    
    
    165,375
    
    
    $
    1,815,584
    
    
    $
    (13,109
    )
    
    $
    1,802,475
 See accompanying notes to financial statements. 14




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV 
 STATEMENTS OF CASH FLOWS Year Ended December 31,2003
    
    2002
    
    2001CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    323,806
    
    
    $
    334,781
    
    
    $
    340,628Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268Changes in operating assets and liabilities:Decrease (increase) in receivable from Del Taco, Inc.
    
    
    18,750
    
    
    
    6,838
    
    
    
    (3,330
    )Decrease (increase) in deposits
    
    
    36
    
    
    
    (110
    )
    
    
    76Increase in payable to limited partners
    
    
    2,603
    
    
    
    1,145
    
    
    
    3,742Decrease in accounts payable
    
    
    (474
    )
    
    
    (5,685
    )
    
    
    (886
    )Net cash provided by operating activities
    
    
    399,989
    
    
    
    392,237
    
    
    
    395,498CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (390,499
    )
    
    
    (391,725
    )
    
    
    (386,696
    )Net increase in cash
    
    
    9,490
    
    
    
    512
    
    
    
    8,802Beginning cash balance
    
    
    117,957
    
    
    
    117,445
    
    
    
    108,643Ending cash balance
    
    $
    127,447
    
    
    $
    117,957
    
    
    $
    117,445
 See accompanying notes to financial statements. 15




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV 
 NOTES TO FINANCIAL STATEMENTS December 31, 2003 and 2002 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Partnership:Del Taco Income Properties IV, a California limited
partnership, (the 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 or Del Taco), 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 No. (SFAS) 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 November 2002, the Financial Accounting
Standards Board (FASB) issued Interpretation No. 45, Guarantors Accounting
and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others (Interpretation 45), an interpretation of FASB
Statements No. 5, 57 and 107 and rescission of FASB Interpretation No. 34.
Interpretation 45 elaborates on the disclosures to be made by a guarantor in
its interim and annual financial statements about its obligations under certain
guarantees that it has issued. It also clarifies that a guarantor is required
to recognize, at the inception of a guarantee, a liability for the fair value
of the obligation undertaken in issuing the guarantee. Interpretation 45s
initial recognition and initial measurement provisions are effective on a
prospective basis to guarantees issued or modified after December 31, 2002.
The disclosure requirements are effective for financial statements of interim
or annual periods ending after December 15, 2002. The Company adopted the
disclosure requirements of Interpretation 45 effective December 31, 2002 and
has not entered into any guarantees since December 31, 2002. 16




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2003 and 2002 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Recent Accounting Pronouncements  Continued:In January 2003, the FASB issued
Interpretation No. 46, Consolidation of Variable Interest Entities
(Interpretation 46), an interpretation of Accounting Research Bulletin (ARB)
No. 51. Interpretation 46, as amended, addresses consolidation by business
enterprises of variable interest entities. Interpretation 46, as amended,
applies immediately to variable interest entities created after January 31,
2003, and to variable interest entities in which an enterprise obtains an
interest after that date. It applies in the first year or interim period
beginning after December 15, 2003, to variable interest entities in which an
enterprise holds a variable interest that it acquired before February 1, 2003.
In December 2003, the FASB issued Interpretation No. 46R which modified certain
provisions of Interpretation 46. Interpretation No. 46R also modified the
effective date of Interpretation 46. Companies must apply Interpretation No.
46R by the end of the first reporting period after December 15, 2003. The
Company believes it has no variable interest entities to which Interpretation
46 nor Interpretation No. 46R would apply. 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
2003, 2002 and 2001. Use of Estimates:The preparation of the financial statements in conformity
with accounting principles generally accepted in the United States of America
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 rental revenues for the three years ended December 31, 2003.
Therefore, the business of the Partnership is almost entirely dependent on the
success of the Del Taco trade name restaurants that lease the properties. 17




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2003 and 2002 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 are to 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 (12
percent) as defined in the partnership agreement. Additional gains are to 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 2003, 2002 and 2001. NOTE 4 - LEASING ACTIVITIES The Partnership leases certain properties for operation of restaurants to Del
Taco 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 $50,599, $73,552
and $81,964 for the years ended December 31, 2003, 2002 and 2001, 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, 2003, 2002 and
2001 (Del Taco, in turn, has subleased one of the restaurants to a Del Taco
franchisee for each of the three years ended December 31, 2003). The two restaurants operated by Del Taco, for which the Partnership is the
lessor, had combined, unaudited sales of $1,952,440, $1,794,350 and $1,802,525
and unaudited net income of $153,412, $110,274 and $114,936 for the years ended
December 31, 2003, 2002 and 2001, 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 $1,289,707, $1,197,960 and $1,138,178 for the
years ended December 31, 2003, 2002 and 2001, respectively. 18




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2003 and 2002 NOTE 5 - RELATED PARTIES The receivable from Del Taco consists of rent accrued for the month of December
2003 as well as supplemental rent. These amounts were collected in January
2004. The General Partner received $3,905 in distributions relating to its one
percent interest in the Partnership for the year ended December 31, 2003. Del Taco 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 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 The Partnership is not subject to income taxes because its income is taxed
directly to the General Partner and limited partners. The reconciling items
presented in the table below are the only items that create a difference
between the tax basis and reported amounts of the Partnerships assets and
liabilities. A reconciliation of financial statement net income to taxable income for each
of the periods is as follows: 2003
    
    2002
    
    2001Net income per financial statements
    
    $
    323,806
    
    
    $
    334,781
    
    
    $
    340,628Excess book depreciation
    
    
    14,915
    
    
    
    14,916
    
    
    
    14,911Taxable income
    
    $
    338,721
    
    
    $
    349,697
    
    
    $
    355,539
 A reconciliation of partnership equity per the financial statements to
partners equity for tax purposes as of December 31, 2003, is as follows
(unaudited): Partners equity per financial statements
    
    $
    1,802,475Issue costs of limited partnership units
capitalized for tax purposes
    
    
    579,259Excess book depreciation
    
    
    200,007Partners equity for tax purposes
    
    $
    2,581,741
 19




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2003 and 2002 NOTE 7 - CASH DISTRIBUTIONS TO LIMITED PARTNERS Cash distributions paid to limited partners for the three years ended December
31, 2003 were as follows: Cash
    
    Weighted
    
    Number of UnitsDistributions per
    
    Average Number
    
    Outstanding atLimited Partnership
    
    of Units
    
    the End ofQuarter Ended
    
    Unit
    
    Outstanding
    
    QuarterDecember 31, 2000
    
    $
    0.48
    
    
    
    165,375
    
    
    
    165,375March 31, 2001
    
    
    0.87
    
    
    
    165,375
    
    
    
    165,375June 30, 2001
    
    
    0.44
    
    
    
    165,375
    
    
    
    165,375September 30, 2001
    
    
    0.53
    
    
    
    165,375
    
    
    
    165,375Total paid in 2001
    
    $
    2.32December 31, 2001
    
    $
    0.51
    
    
    
    165,375
    
    
    
    165,375March 31, 2002
    
    
    0.85
    
    
    
    165,375
    
    
    
    165,375June 30, 2002
    
    
    0.47
    
    
    
    165,375
    
    
    
    165,375September 30, 2002
    
    
    0.52
    
    
    
    165,375
    
    
    
    165,375Total paid in 2002
    
    $
    2.35December 31, 2002
    
    $
    0.50
    
    
    
    165,375
    
    
    
    165,375March 31, 2003
    
    
    0.82
    
    
    
    165,375
    
    
    
    165,375June 30, 2003
    
    
    0.48
    
    
    
    165,375
    
    
    
    165,375September 30, 2003
    
    
    0.54
    
    
    
    165,375
    
    
    
    165,375Total paid in 2003
    
    $
    2.34
 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, 2003
amounted to $.54 per limited partnership unit and were paid in January 2004. NOTE 8 - RESULTS BY QUARTER (UNAUDITED) First
    
    Second
    
    Third
    
    FourthQuarter
    
    Quarter
    
    Quarter
    
    QuarterYear ended December 31, 2003:Rental revenues
    
    $
    89,788
    
    
    $
    96,625
    
    
    $
    99,812
    
    
    $
    153,432Net income
    
    
    46,388
    
    
    
    70,175
    
    
    
    76,437
    
    
    
    130,806Net income per limited partnership
unit
    
    
    0.28
    
    
    
    0.42
    
    
    
    0.46
    
    
    
    0.78Year ended December 31, 2002:Rental revenues
    
    $
    85,194
    
    
    $
    90,995
    
    
    $
    90,950
    
    
    $
    165,490Net income
    
    
    50,964
    
    
    
    66,540
    
    
    
    71,769
    
    
    
    145,508Net income per limited partnership
unit
    
    
    0.31
    
    
    
    0.40
    
    
    
    0.43
    
    
    
    0.86
 20




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##### Table of Contents



Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Refer to Forms 8-k filed on April 17, 2003 and May 13, 2003. 
 Item 9A. Controls and Procedures  (a)
    
    Evaluation of disclosure controls and procedures:  As of the end of the period covered by this annual report, we
carried out an evaluation, under the supervision and with the
participation of our management, including our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on that
evaluation, our Chief Executive Officer and Chief Financial Officer
have concluded that these disclosure controls and procedures are
effective in timely alerting them to material information relating to
the Company (including its subsidiaries) required to be included in our
periodic Securities and Exchange Commission filings.  (b)
    
    Changes in internal controls:  There were no significant changes in the Companys internal controls
over financial reporting that occurred during our most recent fiscal
quarter that materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.  (c)
    
    Asset-Backed issuers:  Not applicable. 
 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
    
    AgeKevin K. Moriarty
    
    Director, Chairman and Chief Executive Officer
    
    
    57C. Ronald Petty
    
    President
    
    
    59Robert J. Terrano
    
    Executive Vice President and Chief Financial Officer
    
    
    48James D. Stoops
    
    Executive Vice President, Operations
    
    
    51Janet D. Erickson
    
    Executive Vice President, Purchasing
    
    
    47Shirlene Lopez
    
    Executive Vice President, Operations Services
    
    
    39Michael L. Annis
    
    Vice President, Secretary and General Counsel
    
    
    57
 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 2004.  (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: 21




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##### Table of Contents



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 1996-1998; President of Del Taco December 1998-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. 22




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##### Table of Contents



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. 
 Item 11. Executive Compensation 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 and Related Security Holder Matters  (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. 23




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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 2003, the following transactions occurred between the Partnership
and the General Partner pursuant to the terms of the partnership
agreement.  (1)
    
    The General Partner earned $3,238 as its one percent share of
the net income of the Partnership.(2)
    
    The General Partner received $3,905 in distributions relating
to its one percent interest in the Partnership.  (b)
    
    During 2003, 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 2003 for any amount in excess of $86,000.(d)
    
    Not applicable. 
 Item 14. Principal Accountant Fees and Services The following table presents fees for professional services rendered by KPMG
LLP and PricewaterhouseCoopers LLP for the audit of the Companys annual
financial statements and other services for 2003 and 2002, respectively. 2003
    
    2002Audit Fees
    
    $
    8,375
    
    
    $
    10,000Audit-Related Fees
    
    
    0
    
    
    
    0Tax Fees
    
    
    13,000
    
    
    
    11,000All Other Fees
    
    
    0
    
    
    
    0Total
    
    $
    21,375
    
    
    $
    21,000
 The General Partner has considered whether the independent auditors provision
of tax services to the Company is compatible with the auditors independence.
Additionally, the General Partner approves all the audit and non-audit
services, and related fees, provided to the Partnership by the independent
auditors prior to the services being rendered. 24




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##### Table of Contents



PART IV 
 Item 15. Exhibits, Financial Statements Schedules, and Reports on Form 8-K (a)(1)
    
    Financial StatementsIncluded in Part II of this report:Independent Auditors ReportBalance SheetsStatements of IncomeStatements of Partners EquityStatements of Cash FlowsNotes to Financial Statements(a)(2)
    
    Financial Statement SchedulesReport of Independent Public Accountants on Financial Statement Schedule
Schedule III  Real Estate and Accumulated DepreciationFinancial statement schedules other than those referred to above have
been omitted because they are not applicable or not required.(b)
    
    Reports on Form 8KNo reports on Form 8-K were filed during the last quarter of 2003.(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, 1987.31.1
    
    Kevin K. Moriartys Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Robert J. Terranos Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 25




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##### Table of Contents



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)
PricewaterhouseCoopers LLP
Orange County, California
January 22, 2003 26




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##### Table of Contents



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 ACCOUNTANTSTo 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.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.  (AUTHUR ANDERSEN LLP)Orange County, California
February 15, 2002 27




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV  SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2003 Cost capitalized
    
    Gross amount atInitial cost
    
    subsequent to
    
    which carried atto company
    
    acquisition
    
    close of periodLand
    
    Buildings &
    
    
    
    
    
    Land, buildings &Description
    
    
    
    
    
    & land
    
    Improve-
    
    Carrying
    
    improvements(All Restaurants)
    
    Encumbrances
    
    improvements
    
    ments
    
    costs
    
    TotalPlacentia, CA
    
    $
    
    
    
    $
    465,933
    
    
    $
    485,961
    
    
    $
    
    
    
    $
    951,894Lake Elsinore, CA
    
    
    
    
    
    
    449,058
    
    
    
    468,361
    
    
    
    
    
    
    
    917,419San Bernardino, CA
    
    
    
    
    
    
    321,709
    
    
    
    335,538
    
    
    
    
    
    
    
    657,247$
    
    
    
    $
    1,236,700
    
    
    $
    1,289,860
    
    
    $
    
    
    
    $
    2,526,560
   [Continued from above table, first column(s) repeated] Life on whichdepreciation in latestDescription
    
    Accumulated
    
    Date of
    
    Date
    
    income statement(All Restaurants)
    
    depreciation
    
    construction
    
    acquired
    
    is computedPlacentia, CA
    
    $
    288,275
    
    
    
    1988
    
    
    
    1988
    
    
    20 (LI), 35 (BI)Lake Elsinore, CA
    
    
    277,836
    
    
    
    1989
    
    
    
    1989
    
    
    20 (LI), 35 (BI)San Bernardino, CA
    
    
    199,034
    
    
    
    1989
    
    
    
    1989
    
    
    20 (LI), 35 (BI)$
    765,145
 AccumulatedRestaurants
    
    DepreciationBalances at December 31, 2000:
    
    $
    2,526,560
    
    
    $
    599,341Additions
    
    
    
    
    
    
    55,268Retirements
    
    
    
    
    
    
    Balances at December 31, 2001:
    
    
    2,526,560
    
    
    
    654,609Additions
    
    
    
    
    
    
    55,268Retirements
    
    
    
    
    
    
    Balances at December 31, 2002:
    
    
    2,526,560
    
    
    
    709,877Additions
    
    
    
    
    
    
    55,268Retirements
    
    
    
    
    
    
    Balances at December 31, 2003:
    
    $
    2,526,560
    
    
    $
    765,145
 The aggregate cost basis of Del Taco Restaurant Properties I real estate assets for Federal
income tax purposes was $1,961,422 at December 31, 2003. See accompanying independent auditors report. 28




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##### Table of Contents



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 RESTAURANT PROPERTIES IV
a California limited partnershipDel Taco, Inc.
General PartnerDate
    
    March 30, 2004
    
    
    
    Kevin K. MoriartyKevin K. Moriarty
Director, Chairman and Chief
Executive OfficerDate
    
    March 30, 2004
    
    
    
    Michael L. AnnisMichael L. Annis
Vice President, Secretary and
General CounselDate
    
    March 30, 2004
    
    
    
    Robert J. TerranoRobert J. Terrano
Executive Vice President and
Chief Financial Officer
 29




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##### Table of Contents



EXHIBIT INDEX EXHIBIT
    
    Description1.
    
    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, 1987.31.1
    
    Kevin K. Moriartys Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Robert J. Terranos Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
 30