UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                             -----------------------

                                    FORM 10-Q
                   Quarterly Report Under Section 13 or 15(d)
              of the United States Securities Exchange Act of 1934

                             -----------------------


For Quarter Ended March 31, 1997                    Commission File No. 33-18859


                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
             (Exact name of registrant as specified in its charter)


         Massachusetts                                                04-2985041
(State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                               Identification No.)


    One Financial Center, 21st Floor, Boston, MA                           02111
(Address of principal executive offices)                              (Zip Code)


Registrant's telephone number, including area code                (617) 482-8000

                        ---------------------------------


                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

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 ___

                             There are no Exhibits.

                                  Page 1 of 12

<PAGE>

<TABLE>
<CAPTION>

                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)


                              INDEX                                                                              Page No.

<S>           <C>                                                                                                <C>
Part I.       FINANCIAL INFORMATION

              Financial Statements

                    Balance Sheets as of March 31, 1997 and December 31, 1996                                    3

                    Statements of Operations
                         Quarters Ended March 31, 1997 and 1996                                                  4

                    Statements of Cash Flows
                         Quarters Ended March 31, 1997 and 1996                                                  5

                    Notes to Financial Statements                                                                6 - 7

              Management's Discussion and Analysis of Financial Condition
                    and Results of Operations                                                                    8 - 9

              Computer Equipment Portfolio                                                                       10

Part II.      OTHER INFORMATION

              Items 1 - 6                                                                                        11

              Signature                                                                                          12
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                          PART I: FINANCIAL INFORMATION

                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                                 Balance Sheets

                                     Assets                                         (Unaudited)              (Audited)
                                                                                      3/31/97                 12/31/96
                                                                                 ----------------        ----------------

<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      4,619,375        $      5,084,339
     Less accumulated depreciation                                                      3,546,637               3,807,667
                                                                                 ----------------        ----------------
       Investment property, net                                                         1,072,738               1,276,672

Cash and cash equivalents                                                                 177,319                  36,022
Rents receivable, net (note 2)                                                             47,480                  64,103
Account receivable - affiliates (note 4)                                                   15,752                   1,214
Sales receivable, net (note 2)                                                            135,296                   6,425
Marketable securities (note 6)                                                                  -                     600
                                                                                 ----------------        ----------------

     Total assets                                                                $      1,448,585        $      1,385,036
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                    $        321,940        $        437,438
   Accounts payable and accrued expenses - affiliates (note 4)                             27,580                  28,097
   Accounts payable and accrued expenses                                                  167,839                 144,138
   Unearned rental revenue                                                                  6,384                  29,795
   Long-term debt, less current portion (note 5)                                          208,365                 153,736
                                                                                 ----------------        ----------------

     Total liabilities                                                                    732,108                 793,204
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                614,281                 610,700
     Cumulative cash distributions                                                       (615,281)               (611,699)
     Unrealized losses on marketable securities (note 6)                                        -                      (1)
                                                                                 ----------------        ----------------
                                                                                                -                       -
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net income                                                                277,018                  84,457
     Cumulative cash distributions                                                    (11,709,000)            (11,640,935)
     Unrealized losses on marketable securities (note 6)                                        -                    (149)
                                                                                 ----------------        ----------------
                                                                                          716,477                 591,832
                                                                                 ----------------        ----------------
     Total partners' equity                                                               716,477                 591,832
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $      1,448,585        $      1,385,036
                                                                                 ================        ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                            Statements of Operations
                     Quarters Ended March 31, 1997 and 1996
                                   (Unaudited)

                                                                                       1997                     1996
                                                                                -----------------        ----------------

<S>                                                                             <C>                      <C>             
Revenue:
   Rental income                                                                $         254,428        $        457,136
   Other income                                                                            26,713                       -
   Interest income                                                                          1,379                   1,449
   Net gain on sale of equipment                                                          157,008                   1,140
   Net loss on sale of marketable securities                                                 (117)                      -
                                                                                -----------------        ----------------

       Total revenue                                                                      439,411                 459,725
                                                                                -----------------        ----------------

Costs and expenses:
   Depreciation                                                                           198,429                 403,109
   Interest                                                                                11,055                  23,349
   Related party expenses (note 4):
     Management fees                                                                       14,766                  28,021
     General and administrative                                                            42,809                  36,676
   Reversal of provision for doubtful accounts                                            (23,790)                      -
                                                                                -----------------        ----------------

       Total costs and expenses                                                           243,269                 491,155
                                                                                -----------------        ----------------

Net income (loss)                                                               $         196,142        $        (31,430)
                                                                                =================        ================

Net income (loss) per Limited Partnership Unit                                  $            7.07        $          (1.18)
                                                                                =================        ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                            Statements of Cash Flows
                     Quarters Ended March 31, 1997 and 1996
                                   (Unaudited)

                                                                                       1997                    1996
                                                                                       ----                    ----

<S>                                                                             <C>                      <C>              
Cash flows from operating activities:
   Net income (loss)                                                            $         196,142        $        (31,430)
                                                                                -----------------        ----------------

   Adjustments to reconcile  net income (loss) to net cash
     provided by operating activities:
       Depreciation                                                                       198,429                 403,109
       Reversal of provision for doubtful accounts                                        (23,790)                      -
       Net gain on sale of equipment                                                     (157,008)                 (1,140)
       Net loss on sale of marketable securities                                              117                       -
       Net increase in current assets                                                    (102,996)                 (3,306)
       Net decrease in current liabilities                                                   (227)               (324,874)
                                                                                -----------------        ----------------

         Total adjustments                                                                (85,475)                 73,789
                                                                                -----------------        ----------------

         Net cash provided by operating activities                                        110,667                  42,359
                                                                                -----------------        ----------------

Cash flows from investing activities:
   Purchase of investment property                                                              -                (506,622)
   Proceeds from sale of investment property                                              162,513                 122,761
   Proceeds from sale of marketable securities                                                633                       -
                                                                                -----------------        ----------------

         Net cash provided by (used in) investing activities                              163,146                (383,861)
                                                                                -----------------        ----------------

Cash flows from financing activities:
   Proceeds from borrowings on notes payable - affiliate                                        -                 223,600
   Proceeds from borrowings on long-term debt                                             230,336                 189,942
   Principal payments on long-term debt                                                  (291,205)               (131,450)
   Cash distributions to partners                                                         (71,647)               (214,942)
                                                                                -----------------        ----------------

         Net cash (used in) provided by financing activities                             (132,516)                 67,150
                                                                                -----------------        ----------------

Net increase (decrease) in cash and cash equivalents                                      141,297                (274,352)

Cash and cash equivalents at beginning of period                                           36,022                 336,360
                                                                                -----------------        ----------------

Cash and cash equivalents at end of period                                      $         177,319        $         62,008
                                                                                =================        ================

Supplemental cash flow information:
   Interest paid during the period                                              $          11,055        $         20,722
                                                                                =================        ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                          Notes to Financial Statements
                Quarters Ended March 31, 1997 and March 31, 1996
                                   (Unaudited)

(1)   Organization and Partnership Matters

The foregoing financial statements of Wellesley Lease Income Limited Partnership
IV (the  "Partnership")  have been  prepared  in  accordance  with the rules and
regulations of the Securities and Exchange  Commission for Form 10-Q and reflect
all  adjustments  which are, in the opinion of management,  necessary for a fair
presentation of the results for the interim periods presented.  Pursuant to such
rules and  regulations,  certain note  disclosures  which are normally  required
under  generally  accepted  accounting  principles  have  been  omitted.  It  is
recommended  that these  financial  statements be read in  conjunction  with the
Partnership's Annual Report on Form 10-K for the year ended December 31, 1996.

(2)   Significant Accounting Policies

Allowance for Doubtful Accounts

The financial  statements  include allowances for estimated losses on receivable
balances.  The  allowances  for  doubtful  accounts  are based on past write off
experience  and an evaluation  of potential  uncollectible  accounts  within the
current  receivable  balances.  Receivable  balances  which are determined to be
uncollectible  are charged against the allowance and subsequent  recoveries,  if
any, are credited to the allowance. At March 31, 1997 and December 31, 1996, the
allowance for doubtful  accounts  included in rents  receivable  was $27,973 and
$51,763,  respectively.  At March 31, 1997 and December 31, 1996,  the allowance
for doubtful accounts included in sales receivable was $11,100.

(3)   Investment Property

At March 31, 1997, the Partnership  owned computer  equipment with a depreciated
cost basis of  $1,047,061,  subject to  existing  leases  and  equipment  with a
depreciated cost basis of $25,677 in inventory,  awaiting  re-lease or sale. All
purchases of computer  equipment are subject to a 3% acquisition fee paid to the
General Partner.

(4)   Related Party Transactions

Fees,  commissions  and other expenses paid or accrued by the Partnership to the
General  Partner or  affiliates  of the General  Partner for the quarters  ended
March 31 are as follows:

                                                    1997              1996
                                                    ----              ----

Equipment acquisition fees                      $          -       $     14,756
Management fees                                       14,766             28,021
Reimbursable expenses paid                            41,463             40,416
                                                ------------       ------------

                                                $     56,229       $     83,193
                                                ============       ============



<PAGE>


                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                          Notes to Financial Statements
                Quarters Ended March 31, 1997 and March 31, 1996
                                   (Unaudited)

Under the terms of the Partnership Agreement, the General Partner is entitled to
an equipment acquisition fee of 3% of the purchase price paid by the Partnership
for the  equipment.  The General  Partner is also  entitled to a management  fee
equal  to 7% of the  monthly  rental  billings.  In  addition,  the  Partnership
reimburses the General Partner and its affiliates for certain expenses  incurred
by them in connection with the operation of the Partnership.

(5)   Long-term Debt

Long-term  debt at March 31, 1997  consists of one loan for $41,130 from Pioneer
Bank and Trust Company with an interest rate of 8.15%, one loan in the amount of
$102,603  from Pullman  Capital  Corporation  with an interest rate of 8.00% and
four loans totaling  $386,572 from Liberty Bank,  one bearing  interest at 9.00%
and the three remaining loans bearing interest at 8.25%.  The total  outstanding
debt balance is  collateralized  by equipment with a net book value of $772,711,
and assignment of the related leases.

Maturities of long-term debt are as follows:

                                     1997                   $      253,925
                                     1998                          210,271
                                     1999                           66,109
                                                            --------------

                                                            $      530,305
                                                            ==============

(6)   Fair Values of Financial Instruments

Pursuant to Statement of Financial Accounting Standards No. 115, "Accounting for
Certain Investments in Debt and Equity  Securities," which requires  investments
in debt and equity  securities  other than those  accounted for under the equity
method  to be  carried  at fair  value or  amortized  cost  for debt  securities
expected to be held to maturity,  the Partnership has classified its investments
in equity  securities as available  for sale.  Accordingly,  the net  unrealized
gains and losses computed in marking these  securities to market are reported as
a component of partners'  equity.  At March 31,  1997,  there are no  marketable
securities owned by the Partnership,  therefore,  there is no unrealized gain or
loss included in partners' equity.

The fair value is based on currently  quoted market  prices.  The cost basis and
estimated  fair value of the  Partnership's  marketable  securities at March 31,
1997 and December 31, 1996, respectively, are as follows:

<TABLE>
<CAPTION>
                                                                            March 31, 1997               December 31, 1996
                                                                       ------------------------     --------------------------

                                                                       Cost           Fair          Cost               Fair
                                                                       Basis          Value         Basis              Value

<S>                                                                    <C>            <C>           <C>                <C>    
Investment in Continental Information
     Systems Corporation Stock                                         $       -      $       -     $   750            $   600
                                                                       =========      =========     =======            =======
</TABLE>


<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations
                                   (Unaudited)

Results of Operations

The following discussion relates to the Partnership's operations for the quarter
ended March 31, 1997 in comparison to the quarter ended March 31, 1996.

The  Partnership  realized  net income of $196,142 and a net loss of $31,430 for
the  quarters  ended  March  31,  1997 and  1996,  respectively.  Rental  income
decreased  $202,708  or 44% between the three  month  periods.  The  decrease is
primarily due to lower rental rates generated on equipment lease  extensions and
remarketings  resulting  after the  initial  lease  term  expires,  and due to a
decrease in the size of the equipment  portfolio.  Other income is the result of
the  reduction of overstated  liabilities  recorded in prior  periods.  Interest
income  decreased as a result of lower average  short-term  investment  balances
held during the current  quarter.  The  $157,008  net gain on sale of  equipment
recognized in the current  quarter is the result of sales of equipment  carrying
low net book  values.  The net  loss on sale of  marketable  securities  in 1997
reflects the below-cost  sale of  Continental  Information  Systems  Corporation
stock. The stock had been received from the Trustee of the Liquidating Estate of
CIS  Corporation  (the  "Estate"),  the former  ultimate  parent  company of the
General Partner,  as part of a settlement of certain  outstanding issues between
the Partnership and the Estate.

Total  costs and  expenses  decreased  $247,886  or 50%  between the three month
periods.  The most  significant  factor  impacting  the  decrease is the current
quarter reduction in depreciation expense. Depreciation expense decreased due to
a portion of the equipment  portfolio  becoming fully  depreciated  and due to a
reduction in the size of the equipment  portfolio.  Interest  expense  decreased
$12,294  due to  the  continued  paydown  of  long-term  debt.  Management  fees
decreased  with the decline in rental  income on operating  leases.  General and
administrative  expense  increased  $6,133. A major factor  contributing to this
increase is that salaries and expenses of the accounting and reporting personnel
of the General Partner, which are reimbursable by the various partnerships under
management,  are being  allocated  over a  diminishing  number of  partnerships.
During the first  quarter of 1997,  the  Partnership  reversed a  provision  for
doubtful accounts in the amount of $23,790 due to successful  collection efforts
on delinquent rents receivable.

The Partnership  recorded net income per Limited Partnership Unit of $7.07 and a
net loss per Limited  Partnership Unit of $1.18 for the quarters ended March 31,
1997 and 1996, respectively. The allocation for the quarter ended March 31, 1997
includes a cost  recovery  allocation  of profit and loss among the  General and
Limited Partners.  This cost recovery allocation is required to maintain capital
accounts  consistent  with  the  distribution   provisions  of  the  Partnership
Agreement.  In certain periods,  the cost recovery of profit and loss may result
in an  allocation  of net loss to the  Limited  Partners in  instances  when the
Partnership's operations were profitable for the period.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations
                                   (Unaudited)

Liquidity and Capital Resources

For the quarter ended March 31, 1997,  rental  revenue  generated from operating
leases  and  proceeds  from the sale of  investment  property  were the  primary
sources of funds for the Partnership. As equipment leases terminate, the General
Partner  determines  if the  equipment  will be  extended  to the  same  lessee,
remarketed to another  lessee,  or sold.  This  decision is made upon  analyzing
which option generates the most favorable result.

Rental income has continued to decrease due to two factors.  First,  lower rates
are obtained on the  remarketing of existing  equipment  upon  expiration of the
original leases. Typically the remarketed rates are lower due to the decrease in
useful life of the equipment. Second, the increasing change of technology in the
computer  industry  usually  decreases  the  demand  for older  equipment,  thus
increasing the possibility of obsolescence.  Both of these factors together will
cause  remarketed  rates to be lower than original  rates and will cause certain
leases to terminate upon expiration.  This decrease  however,  should not affect
the Partnership's  ability to meet its future cash  requirements,  including its
long-term  debt  obligations.  To the extent that  future  cash flows  should be
insufficient  to meet the  Partnership's  operating  expenses  and  liabilities,
additional funds could be obtained through the sale of equipment, or a reduction
in the rate of cash  distributions.  Future rental revenues amount to $1,533,193
and are to be received over the next five years.

The  Partnership's  investing  activities  resulted in sales of equipment with a
depreciated cost basis of $5,505,  generating $162,513 in proceeds.  Included in
equipment  sales is a  $15,728  loss  which was  charged  against  the  reserve,
initially  set up in a prior  period  to  account  for  estimated  losses on the
ultimate  disposition of equipment.  The Partnership will not purchase equipment
in the future as the Partnership has reached the end of its reinvestment period.

The Partnership's  financing  activities  resulted in proceeds from borrowing on
long-term debt of $230,336. The Partnership's activities also included a paydown
on  long-term  debt of  $291,205.  The  Partnership  will  payoff its  remaining
long-term debt of $530,305 in 1999.  Total debt assumed by the Partnership  from
inception is $14,500,441, for a total leverage of 43%.

Cash  distributions  are  currently  at  an  annual  level  of  4%  per  Limited
Partnership Unit or $5.00 per Limited Partnership Unit on a quarterly basis. For
the quarter ended March 31, 1997, the Partnership  declared a cash  distribution
of $137,978,  of which $1,848 was allocated to the General  Partner and $136,130
was allocated to the Limited Partners.  The distribution will be made on May 30,
1997. The  Partnership  expects to continue  paying at or near this level in the
future.  The effects of inflation have not been  significant to the  Partnership
and are not expected to have any material impact in future periods.



<PAGE>


                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

                    Computer Equipment Portfolio (Unaudited)
                                 March 31, 1997

Lessee

American Freightways, Incorporated
Bassin Distributors, Incorporated
Carr Separations, Incorporated
Chrysler Corporation
Cincinnati Gas & Electric Company
Coulter Corporation
Cybersmith, Incorporated
Dave's Custom Caps
FAX International, Incorporated
H.J. Meyer Company, Incorporated
Hughes Aircraft Company, Incorporated
Internet Access Company, Incorporated
J. Walter Thompson Company
JumboSports, Incorporated
ON Technology Corporation
Sero Company, Incorporated

Equipment Description                       Acquisition Price

Computer peripherals                         $      2,032,525
Processors & upgrades                               1,247,231
Telecommunications                                    323,356
Other                                               1,016,263
                                             ----------------

                                             $      4,619,375
                                             ================

<PAGE>


                           PART II. OTHER INFORMATION

                  WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)


Item 1.        Legal Proceedings
               Response:  None

Item 2.        Changes in the Rights of the Partnership's Security Holders
               Response:  None

Item 3.        Defaults by the Partnership on its Senior Securities
               Response:  None

Item 4.        Results of Votes of Security Holders
               Response:  None

Item 5.        Other Information
               Response:  None

Item 6.        Exhibits and Reports on Form 8-K
               Response:

               A.  None

               B.  None


<PAGE>


                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
(Registrant)

By:    Wellesley Leasing Partnership,
       its General Partner

By:    TLP Leasing Programs, Inc.,
       one of its Corporate General Partners





By:    Arthur P. Beecher,
       President

Date:  May 12, 1997