##### Table of Contents









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,
2004

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 Risk.Item 8. Financial StatementsBALANCE 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, 2004, 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
through service
window
    
    July 13, 1990
  (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 304 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, 2004, 2003, 2002,
2001 and 2000, has been derived from the audited financial statements and should be read in
conjunction with the financial statements and related notes and Item 7, Managements Discussion and
Analysis of Financial Condition and Results of Operations. For the Year Ended December 31,2004
    
    2003
    
    2002
    
    2001
    
    2000Rental revenues
    
    $
    439,657
    
    
    $
    439,657
    
    
    $
    432,629
    
    
    $
    434,848
    
    
    $
    417,251General and administrative
expense
    
    
    60,837
    
    
    
    62,441
    
    
    
    45,707
    
    
    
    43,193
    
    
    
    42,205Depreciation expense
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268
    
    
    
    59,485Interest and other income
    
    
    1,955
    
    
    
    1,858
    
    
    
    3,127
    
    
    
    4,241
    
    
    
    4,545Net income
    
    
    325,507
    
    
    
    323,806
    
    
    
    334,781
    
    
    
    340,628
    
    
    
    320,106Net income per limited
partnership unit
    
    
    1.95
    
    
    
    1.94
    
    
    
    2.00
    
    
    
    2.04
    
    
    
    1.92Cash distributions per
limited partnership unit
    
    
    2.52
    
    
    
    2.34
    
    
    
    2.35
    
    
    
    2.32
    
    
    
    2.29Total assets
    
    
    1,892,767
    
    
    
    1,975,153
    
    
    
    2,039,717
    
    
    
    2,101,201
    
    
    
    2,144,413Long-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 31,2004
    
    2003
    
    2002Orangethorpe Ave., Placentia, CA
    
    $
    169,881
    
    
    $
    175,288
    
    
    $
    171,135Lakeshore Drive, Lake Elsinore, CA
    
    
    176,599
    
    
    
    174,899
    
    
    
    173,201Highland Ave., San Bernardino, CA
    
    
    93,177
    
    
    
    89,470
    
    
    
    88,293Total
    
    $
    439,657
    
    
    $
    439,657
    
    
    $
    432,629
 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, 2004, which is the same amount as 2003.
The Partnership earned rental revenues of $439,657 during the year ended December 31, 2003, which
represented 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. Supplemental rent was $9,679, $50,599 and
$73,552 for the years ended December 31, 2004, 2003 and 2002, respectively. Supplemental rent is
calculated on an annual basis and recorded in the fourth quarter since the amount of supplemental
rent, if any, is contingent upon the amount of annual gross sales and pretax profits of the
restaurants which are not known until the end of the year. The amount of supplemental rent, if
any, 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 of the restaurants, 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). To the extent 12 percent of gross sales of the
restaurants exceeds the supplemental rent rate the supplemental rent would be zero. The following table breaks down general and administrative expenses by type of expense: Percentage of Total General & Administrative Expense Year Ended December 31,2004
    
    2003
    
    2002Accounting fees
    
    
    59.98
    %
    
    
    57.29
    %
    
    
    65.32
    %Distribution of information
to limited partners
    
    
    38.62
    
    
    
    41.30
    
    
    
    32.93Other
    
    
    1.40
    
    
    
    1.41
    
    
    
    1.75100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
 General and administrative costs decreased by $1,604 from 2003 to 2004. The decrease was caused
primarily by decreased costs for income tax preparation and printing and mailing costs, partially
offset with increased costs for the annual audit. 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. Depreciation expense was the same in 2004, 2003 and 2002. Net income increased by $1,701 from 2003 to 2004 due to the decrease in general and administrative
expenses of $1,604 and the increase in other income of $97. 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. 6




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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations- (Continued) Recent Accounting Pronouncements In December 2003, the FASB issued FASB Interpretation No. 46 (revised December 2003),
Consolidation of Variable Interest Entities, which addresses how a business enterprise should
evaluate whether it has a controlling financial interest in an entity through means other than
voting rights and accordingly should consolidate the entity. FIN 46R replaces FASB Interpretation
No. 46, Consolidation of Variable Interest Entities, which was issued in January 2003. The Company
is required to apply FIN 46R to variable interests in VIEs created after December 31, 2003. For
variable interests in VIEs created before January 1, 2004, the Interpretation will be applied
beginning on January 1, 2005. For any VIEs that must be consolidated under FIN 46R that were
created before January 1, 2004, the assets, liabilities and noncontrolling interests of the VIE
initially would be measured at their carrying amounts with any difference between the net amount
added to the balance sheet and any previously recognized interest being recognized as the
cumulative effect of an accounting change. If determining the carrying amounts is not practicable,
fair value at the date FIN 46R first applies may be used to measure the assets, liabilities and
noncontrolling interest of the VIE. The Company believes it has no variable interest entities to
which FIN 46R applies. 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 NUMBERReport of Independent Registered Public Accounting Firm
    
    
    9Report of Independent Registered Public Accounting Firm
    
    
    10Balance Sheets at December 31, 2004 and 2003
    
    
    11Statements of Income for the years ended
December 31, 2004, 2003 and 2002
    
    
    12Statements of Partners Equity for
the years ended December 31, 2004, 2003 and 2002
    
    
    13Statements of Cash Flows for the years ended
December 31, 2004, 2003 and 2002
    
    
    14Notes to Financial Statements
    
    
    15-19
 8




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 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, 2004 and 2003, and the related statements of income,
partners equity, and cash flows for the years then ended. In connection with our audits of the
financial statements, we have also audited the 2004 and 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 these financial
statements and financial statement schedule based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (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, 2004 and 2003,
and the results of its operations and its cash flows for the years then ended in conformity
with accounting principles generally accepted in the United States of America. Also in our opinion,
the 2004 and 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
Costa Mesa, California
March 4, 2005 9




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Partners of
Del Taco Income Properties IV: In our opinion, the statements of income, partners equity, and cash flows for the year ended
December 31, 2002 present fairly, in all material respects, the results of operations and cash
flows of Del Taco Income Properties IV (A California Limited Partnership) for the year ended
December 31, 2002, 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 the standards of the Public Company
Accounting Oversight Board (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, 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. /s/  PricewaterhouseCoopers
LLP
Orange County, California
January 22, 2003 10




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DEL TACO INCOME PROPERTIES IV 
 BALANCE SHEETS December 31,2004
    
    2003ASSETSCURRENT ASSETS:Cash
    
    $
    140,285
    
    
    $
    127,447Receivable from Del Taco, Inc.
    
    
    45,765
    
    
    
    85,847Deposits
    
    
    600
    
    
    
    474Total current assets
    
    
    186,650
    
    
    
    213,768PROPERTY 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
    
    
    1,305,232
    
    
    
    1,249,9641,706,117
    
    
    
    1,761,385$
    1,892,767
    
    
    $
    1,975,153LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    36,913
    
    
    $
    31,690Accounts payable
    
    
    10,567
    
    
    
    3,035Total current liabilities
    
    
    47,480
    
    
    
    34,725OBLIGATION TO GENERAL PARTNER
    
    
    137,953
    
    
    
    137,953PARTNERS EQUITYLimited partners
    
    
    1,721,394
    
    
    
    1,815,584General partner-Del Taco, Inc.
    
    
    (14,060
    )
    
    
    (13,109
    )1,707,334
    
    
    
    1,802,475$
    1,892,767
    
    
    $
    1,975,153
 See accompanying notes to financial statements. 11




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DEL TACO INCOME PROPERTIES IV 
 STATEMENTS OF INCOME Year Ended December 31,2004
    
    2003
    
    2002RENTAL REVENUES
    
    $
    439,657
    
    
    $
    439,657
    
    
    $
    432,629EXPENSES:General and administrative
    
    
    60,837
    
    
    
    62,441
    
    
    
    45,707Depreciation
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268Operating income
    
    
    323,552
    
    
    
    321,948
    
    
    
    331,654OTHER INCOMEInterest
    
    
    1,380
    
    
    
    1,258
    
    
    
    1,702Other
    
    
    575
    
    
    
    600
    
    
    
    1,425Net income
    
    $
    325,507
    
    
    $
    323,806
    
    
    $
    334,781Net income per limited
partnership unit
    
    $
    1.95
    
    
    $
    1.94
    
    
    $
    2.00Number of units used in computing
per unit amounts
    
    
    165,375
    
    
    
    165,375
    
    
    
    165,375
 See accompanying notes to financial statements. 12




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DEL TACO INCOME PROPERTIES IV 
 STATEMENTS OF PARTNERS EQUITY Years ended December 31, 2004, 2003 and 2002 Limited Partners
    
    GeneralUnits
    
    Amount
    
    Partner
    
    TotalBalance, 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
    )
    
    
    1,802,475Net income
    
    
    
    
    
    
    322,252
    
    
    
    3,255
    
    
    
    325,507Cash distributions
    
    
    
    
    
    
    (416,442
    )
    
    
    (4,206
    )
    
    
    (420,648
    )Balance, December 31, 2004
    
    
    165,375
    
    
    $
    1,721,394
    
    
    $
    (14,060
    )
    
    $
    1,707,334
 See accompanying notes to financial statements. 13




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DEL TACO INCOME PROPERTIES IV 
 STATEMENTS OF CASH FLOWS Year Ended December 31,2004
    
    2003
    
    2002CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    325,507
    
    
    $
    323,806
    
    
    $
    334,781Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    55,268
    
    
    
    55,268
    
    
    
    55,268Changes in operating assets and liabilities:Decrease in receivable from Del Taco, Inc.
    
    
    40,082
    
    
    
    18,750
    
    
    
    6,838(Increase) decrease in deposits
    
    
    (126
    )
    
    
    36
    
    
    
    (110
    )Increase in payable to limited partners
    
    
    5,223
    
    
    
    2,603
    
    
    
    1,145Increase (decrease) in accounts payable
    
    
    7,532
    
    
    
    (474
    )
    
    
    (5,685
    )Net cash provided by operating activities
    
    
    433,486
    
    
    
    399,989
    
    
    
    392,237CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (420,648
    )
    
    
    (390,499
    )
    
    
    (391,725
    )Net increase in cash
    
    
    12,838
    
    
    
    9,490
    
    
    
    512Beginning cash balance
    
    
    127,447
    
    
    
    117,957
    
    
    
    117,445Ending cash balance
    
    $
    140,285
    
    
    $
    127,447
    
    
    $
    117,957
 See accompanying notes to financial statements. 14




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DEL TACO INCOME PROPERTIES IV 
 NOTES TO FINANCIAL STATEMENTS 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 December 2003, the FASB issued FASB Interpretation
No. 46 (revised December 2003), Consolidation of Variable Interest Entities, which addresses how a
business enterprise should evaluate whether it has a controlling financial interest in an entity
through means other than voting rights and accordingly should consolidate the entity. FIN 46R
replaces FASB Interpretation No. 46, Consolidation of Variable Interest Entities, which was issued
in January 2003. The Company is required to apply FIN 46R to variable interests in VIEs created
after December 31, 2003. For variable interests in VIEs created before January 1, 2004, the
Interpretation will be applied beginning on January 1, 2005. For any VIEs that must be
consolidated under FIN 46R that were created before January 1, 2004, the assets, liabilities and
noncontrolling interests of the VIE initially would be measured at their carrying amounts with any
difference between the net amount added to the balance sheet and any previously recognized interest
being recognized as the cumulative effect of an accounting change. If determining the carrying
amounts is not practicable, fair value at the date FIN 46R first applies may be used to measure the
assets, liabilities and noncontrolling interest of the VIE. The Company believes it has no variable
interest entities to which FIN 46R applies. 15




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued 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 based
upon the limited partners 99 percent share of net income divided by the weighted average number of
units outstanding during the period which amounted to 165,375 for all years presented. 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 calculated on an annual
basis and recorded in the fourth quarter since the amount of supplemental rent, if any, is
contingent upon the amount of annual gross sales and pretax profits of the restaurants which are
not known until the end of the year. The amount of supplemental rent, if any, 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 of the restaurants, 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). To the extent 12 percent of gross sales of the restaurants exceeds the
supplemental rent rate the supplemental rent would be zero. Concentration of Risk:The three restaurants leased to Del Taco make up 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, 2004. Therefore, the business of the Partnership is entirely
dependent on the success of the Del Taco trade name restaurants that lease the properties. 16




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED 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 2004, 2003 and 2002. 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 $9,679, $50,599 and $73,552 for
the years ended December 31, 2004, 2003 and 2002, 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, 2004, 2003 and 2002 (Del Taco, in turn, has subleased one of the restaurants to a Del
Taco franchisee for each of the three years ended December 31, 2004). The two restaurants operated by Del Taco, for which the Partnership is the lessor, had combined,
unaudited sales of $2,143,884, $1,952,440 and $1,794,350 and unaudited net income of $185,915,
$153,412 and $110,274 for the years ended December 31, 2004, 2003 and 2002, 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
$1,439,262, $1,289,707 and $1,197,960 for the years ended December 31, 2004, 2003 and 2002,
respectively. 17




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED NOTE 5  RELATED PARTIES The receivable from Del Taco consists of rent accrued for the month of December 2004 as well as
supplemental rent. These amounts were collected in January 2005. The General Partner received $4,206 in distributions relating to its one percent interest in the
Partnership for the year ended December 31, 2004. 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: 2004
    
    2003
    
    2002Net income per financial
statements
    
    $
    325,507
    
    
    $
    323,806
    
    
    $
    334,781Excess book depreciation
    
    
    14,915
    
    
    
    14,915
    
    
    
    14,916Taxable income
    
    $
    340,422
    
    
    $
    338,721
    
    
    $
    349,697
 A reconciliation of partnership equity per the financial statements to partners equity for tax
purposes as of December 31, 2004, is as follows (unaudited): Partners equity per financial statements
    
    $
    1,707,334Issue costs of limited partnership units
capitalized for tax purposes
    
    
    579,259Excess book depreciation
    
    
    214,922Partners equity for tax purposes
    
    $
    2,501,515
 18




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DEL TACO INCOME PROPERTIES IV
NOTES TO FINANCIAL STATEMENTS  CONTINUED NOTE 7  CASH DISTRIBUTIONS TO LIMITED PARTNERS Cash distributions paid to limited partners for the three years ended December 31, 2004 were as
follows: Cash
    
    Weighted
    
    Number of UnitsDistribution per
    
    Average Number
    
    Outstanding atLimited Partnership
    
    of Units
    
    the End ofQuarter Ended
    
    Unit
    
    Outstanding
    
    QuarterDecember 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
    
    $
    2.34December 31, 2003
    
    $
    0.54
    
    
    
    165,375
    
    
    
    165,375March 31, 2004
    
    
    0.75
    
    
    
    165,375
    
    
    
    165,375June 30, 2004
    
    
    0.56
    
    
    
    165,375
    
    
    
    165,375September 30, 2004
    
    
    0.67
    
    
    
    165,375
    
    
    
    165,375Total paid in 2004
    
    $
    2.52
 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, 2004 amounted to $.59 per limited partnership unit
and were paid in January 2005. NOTE 8  RESULTS BY QUARTER (UNAUDITED) First
    
    Second
    
    Third
    
    FourthQuarter
    
    Quarter
    
    Quarter
    
    QuarterYear ended December 31, 2004:Rental revenues
    
    $
    101,710
    
    
    $
    109,478
    
    
    $
    112,574
    
    
    $
    115,895Net income
    
    
    55,569
    
    
    
    86,709
    
    
    
    89,735
    
    
    
    93,494Net income per limited
partnership unit
    
    
    0.33
    
    
    
    0.52
    
    
    
    0.54
    
    
    
    0.56Year 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
    
    
    
    0.78
 19




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##### Table of Contents



Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None 
 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
    
    
    58C. Ronald Petty
    
    President
    
    
    60Robert J. Terrano
    
    Executive Vice President and Chief Financial Officer
    
    
    49James D. Stoops
    
    Executive Vice President, Operations
    
    
    52Janet D. Erickson
    
    Executive Vice President, Purchasing
    
    
    48Shirlene Lopez
    
    Executive Vice President, Operations Services
    
    
    40Michael L. Annis
    
    Vice President, Secretary and General Counsel
    
    
    58
 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
2005.  (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: 20




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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. 21




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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. 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 2004, the following transactions occurred between the Partnership and the General
Partner pursuant to the terms of the partnership agreement.  (1)
    
    The General Partner earned $3,255 as its one percent share of the net income of the Partnership.(2)
    
    The General Partner received $4,206 in distributions relating to its one percent interest in the Partnership.  (b)
    During 2004, 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 2004 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 for the audit of the Companys annual financial statements and other
services for 2004 and 2003, respectively. 2004
    
    2003Audit Fees
    
    $
    13,425
    
    
    $
    10,625Audit-Related Fees
    
    
    0
    
    
    
    0Tax Fees
    
    
    11,187
    
    
    
    13,000All Other Fees
    
    
    0
    
    
    
    0Total
    
    $
    24,612
    
    
    $
    21,375
 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. 23




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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:Report of Independent Registered Public Accounting Firm
Balance Sheets
Statements of Income
Statements of Partners Equity
Statements of Cash Flows
Notes to Financial Statements(a)(2)
    Financial Statement SchedulesReport of Independent Registered Public Accounting Firm 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 2004.(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 24




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
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. /s/ PricewaterhouseCoopers
LLP
Orange County, California
January 22, 2003 25




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##### Table of Contents



DEL TACO INCOME PROPERTIES IV  SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2004 Gross amount atInitial cost
    
    
    Cost capitalized
    
    
    which carried atto company
    
    
    subsequent to
    
    
    close of period
    
    
    
    
    
    
    
    
    
    
    Life on whichLand
    
    
    Building &
    
    
    acquisition
    
    
    Land, buildings &
    
    
    
    
    
    
    
    
    
    
    depreciation in latestDescription
    
    
    
    
    
    & land
    
    
    Improve-
    
    
    Carrying
    
    
    improvements
    
    
    Accumulated
    
    
    Date of
    
    Date
    
    income statement(All Restaurants)
    
    Encumbrances
    
    
    improvements
    
    
    ments
    
    
    costs
    
    
    Total
    
    
    depreciation
    
    
    construction
    
    acquired
    
    is computedPlacentia, CA
    
    $
    
    
    
    $
    465,933
    
    
    $
    485,961
    
    
    $
    
    
    
    $
    951,894
    
    
    $
    309,098
    
    
    1988
    
    1988
    
    20 (LI), 35 (BI)Lake Elsinore, CA
    
    
    
    
    
    
    449,058
    
    
    
    468,361
    
    
    
    
    
    
    
    917,419
    
    
    
    297,905
    
    
    1989
    
    1989
    
    20 (LI), 35 (BI)San Bernardino, CA
    
    
    
    
    
    
    321,709
    
    
    
    335,538
    
    
    
    
    
    
    
    657,247
    
    
    
    213,410
    
    
    1989
    
    1989
    
    20 (LI), 35 (BI)$
    
    
    
    $
    1,236,700
    
    
    $
    1,289,860
    
    
    $
    
    
    
    $
    2,526,560
    
    
    $
    820,413AccumulatedRestaurants
    
    DepreciationBalances 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
    
    
    
    765,145Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    55,268Retirements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balances at December 31, 2004:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,526,560
    
    
    $
    820,413
 The aggregate cost basis of Del Taco Income Properties IV real estate assets for Federal income tax purposes was $1,961,422 at December 31, 2004. See accompanying report of
independent registered public accounting firm. 26




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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 INCOME PROPERTIES IVa California limited partnershipDel Taco, Inc.
General PartnerDate March 25, 2005
    
    Kevin K. MoriartyKevin K. MoriartyDirector, Chairman and ChiefExecutive OfficerDate March 25, 2005
    
    Michael L. AnnisMichael L. AnnisVice President, Secretary andGeneral CounselDate March 25, 2005
    
    Robert J. TerranoRobert J. TerranoExecutive Vice President andChief Financial Officer
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##### Table of Contents



EXHIBIT INDEX ExhibitNo.
    
    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