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 The Quarter Ended September 30, 1996            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 14

<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 September 30, 1996 and December 31, 1995                                3

                    Statements of Operations For the Quarters Ended
                          September 30, 1996 and 1995 and For the Nine Months Ended
                          September 30, 1996 and 1995                                                            4

                    Statements of Cash Flows For the Nine Months Ended
                          September 30, 1996 and 1995                                                            5

                    Notes to Financial Statements                                                                6 - 8

              Management's Discussion and Analysis of Financial Condition
                    and Results of Operations                                                                    9 - 11

              Computer Equipment Portfolio                                                                       12

Part II.      OTHER INFORMATION

              Items 1 - 6                                                                                        13

              Signature                                                                                          14
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

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

                                 Balance Sheets

                                     Assets                                         (Unaudited)              (Audited)
                                                                                      9/30/96                 12/31/95
                                                                                 ----------------        ----------------
<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      5,530,301        $      7,388,216
     Less accumulated depreciation                                                      4,192,793               5,674,559
                                                                                 ----------------        ----------------
       Investment property, net                                                         1,337,508               1,713,657

Cash and cash equivalents                                                                  19,297                 336,360
Rents receivable, net (note 2)                                                             66,573                 125,765
Account receivable - affiliates                                                            47,612                  43,054
Sales receivable, net (note 2)                                                                  -                  16,069
Marketable securities (note 7)                                                              4,235                   4,644
                                                                                 ----------------        ----------------

     Total assets                                                                $      1,475,225        $      2,239,549
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 6)                                    $        497,432        $        491,254
   Notes payable - affiliate (note 5)                                                     123,600                       -
   Accounts payable and accrued expenses - affiliates (note 4)                             38,890                 420,457
   Accounts payable and accrued expenses                                                  152,279                 237,953
   Unearned rental revenue                                                                 16,339                  27,685
   Long-term debt, less current portion (note 6)                                          239,214                 469,249
                                                                                 ----------------        ----------------

     Total liabilities                                                                  1,067,754               1,646,598
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                605,337                 476,748
     Cumulative cash distributions                                                       (606,325)               (588,414)
     Unrealized losses on marketable securities (note 7)                                      (12)                     (8)
                                                                                 ----------------        ----------------
                                                                                                -                (110,674)
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net loss                                                                 (200,935)               (245,511)
     Cumulative cash distributions                                                    (11,538,837)            (11,198,512)
     Unrealized losses on marketable securities (note 7)                                   (1,216)                   (811)
                                                                                 ----------------        ----------------
                                                                                          407,471                 703,625
                                                                                 ----------------        ----------------
     Total partners' equity                                                               407,471                 592,951
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $      1,475,225        $      2,239,549
                                                                                 ================        ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Operations
                                   (Unaudited)

                                                     Quarters Ended                         Nine Months Ended
                                                      September 30,                           September 30,
                                           --------------------------------       ----------------------------------
                                                 1996              1995                1996                1995
                                           --------------------------------       ----------------------------------

<S>                                        <C>               <C>                  <C>                <C>            
Revenue:
   Rental income                           $     384,183     $      477,195       $    1,217,046     $     1,374,914
   Interest income                                   957              3,954                3,712              18,798
   Recovery of net unsecured
     pre-petition claim                                -              6,147                    -              10,757
   Net gain on sale
     of equipment                                    464              3,880                3,685               5,396
                                           -------------     --------------       --------------     ---------------

       Total revenue                             385,604            491,176            1,224,443           1,409,865
                                           -------------     --------------       --------------     ---------------

Costs and expenses:
   Depreciation                                   71,238            380,807              755,684           1,188,112
   Interest                                       19,510             13,874               65,713              36,885
   Related party expenses (note 4):
     Management fees                              27,620             25,504               92,577              77,601
     General and administrative                   37,258             30,707              114,236              94,407
   Provision for (reversal of)
     doubtful accounts                            16,874             (2,028)              23,068               1,638
                                           -------------     --------------       --------------     ---------------

       Total costs and expenses                  172,500            448,864            1,051,278           1,398,643
                                           -------------     --------------       --------------     ---------------

Net income                                 $     213,104     $       42,312       $      173,165     $        11,222
                                           =============     ==============       ==============     ===============

Net income (loss) per Limited
   Partnership Unit                        $        3.21     $         1.28       $        (7.38)    $         (1.29)
                                           =============     ==============       ==============     ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Cash Flows
              For the Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                                                                           1996                      1995
                                                                                           ----                      ----

<S>                                                                                  <C>                      <C>            
Cash flows from operating activities:
   Net income                                                                        $      173,165           $        11,222
                                                                                     --------------           ---------------

   Adjustments  to  reconcile  net  income  to
     net cash  provided  by  operating activities:
       Depreciation                                                                         755,684                 1,188,112
       Provision for doubtful accounts                                                       23,068                     1,638
       Net gain on sale of equipment                                                         (3,685)                   (5,396)
       Net decrease (increase) in current assets                                             47,635                   (42,560)
       Net decrease in current liabilities                                                 (478,587)                   (4,830)
                                                                                     --------------           ---------------

         Total adjustments                                                                  344,115                 1,136,964
                                                                                     --------------           ---------------

         Net cash provided by operating activities                                          517,280                 1,148,186
                                                                                     --------------           ---------------

Cash flows from investing activities:
   Purchase of investment property                                                         (506,622)               (1,113,637)
   Proceeds from sales of investment property                                               130,772                   251,375
                                                                                     --------------           ---------------

         Net cash used in investing activities                                             (375,850)                 (862,262)
                                                                                     --------------           ---------------

Cash flows from financing activities:
   Proceeds from borrowing on notes payable                                                 223,600                         -
   Principal payments on notes payable                                                     (100,000)                        -
   Proceeds from borrowing on long-term debt                                                189,942                   344,520
   Principal payments on long-term debt                                                    (413,799)                 (261,643)
   Cash distributions to partners                                                          (358,236)                 (917,083)
                                                                                     --------------           ---------------

         Net cash used in financing activities                                             (458,493)                 (834,206)
                                                                                     --------------           ---------------

Net decrease in cash and cash equivalents                                                  (317,063)                 (548,282)

Cash and cash equivalents at beginning of period                                            336,360                   843,110
                                                                                     --------------           ---------------

Cash and cash equivalents at end of period                                           $       19,297           $       294,828
                                                                                     ==============           ===============

Supplemental cash flow information:
   Interest paid during the period                                                   $       59,461           $        36,886
                                                                                     ==============           ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


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

                          Notes to Financial Statements
       For the Nine Months Ended September 30, 1996 and September 30, 1995
                                   (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, 1995.

(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 September 30, 1996 and December 31, 1995,
the allowance for doubtful accounts included in rents receivable was $51,763 and
$34,889,  respectively.  The allowance for doubtful  accounts  included in sales
receivable  was $11,100 and $4,906 at September  30, 1996 and December 31, 1995,
respectively.

(3)   Investment Property

At September 30, 1996,  the  Partnership  owned  computer  equipment with a cost
basis of $4,074,456,  subject to existing leases and equipment with a cost basis
of $1,455,845 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 nine months ended
September 30, 1996 and 1995 are as follows:

<TABLE>
<CAPTION>
                                                      1996              1995
                                                      ----              ----

<S>                                               <C>                <C>         
Equipment acquisition fees                        $     14,756       $     32,436
Management fees                                         92,577             77,601
Reimbursable expenses paid                             105,609             89,960
                                                  ------------       ------------

                                                  $    212,942       $    199,997
                                                  ============       ============
</TABLE>



<PAGE>


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

                          Notes to Financial Statements
       For the Nine Months Ended September 30, 1996 and September 30, 1995
                                   (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  collections.  The Partnership  reimburses the
General  Partner and its  affiliates  for certain  expenses  incurred by them in
connection with the operation of the Partnership.

(5)   Notes Payable - Affiliate

Notes payable - affiliate at September 30, 1996,  consists of three non-recourse
promissory  notes payable to TLP Leasing  Programs,  Inc. in the total amount of
$123,600,  bearing interest at the rate of 8.75%.  TLP Leasing Program,  Inc. is
one of the corporate  general  partners of Wellesley  Leasing  Partnership,  the
General Partner of the Partnership. The notes payable matures in 1996.

(6)   Long-term Debt

Long-term  debt at September 30, 1996  consisted of two loans  totaling  $11,003
from Randolph Computer Company,  each bearing interest at 6.00%, one loan in the
amount of $161,233  from Pioneer  Bank and Trust  Company,  bearing  interest at
8.15%,  two loans  totaling  $343,667  from Pullman  Capital  Corporation,  each
bearing interest at 8.00%, and three loans totaling  $220,743 from Liberty Bank,
each  bearing  interest  at  8.125%.  The  total  outstanding  debt  balance  is
collateralized by equipment with a net book value of $996,495, and assignment of
the related leases.

The annual maturities of long-term debt for the next three years are as follows:

         Year Ending December 31,

                           1996                      $     145,472
                           1997                            437,438
                           1998                            153,736
                                                     -------------

                                                     $     736,646
                                                     =============

(7)   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 September 30, 1996 the difference  between
the fair value and the cost basis of these  securities is an unrealized  loss of
$1,228.



<PAGE>


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

                          Notes to Financial Statements
       For the Nine Months Ended September 30, 1996 and September 30, 1995
                                   (Unaudited)

The fair value is based on currently  quoted market  prices.  The cost basis and
estimated fair value of the Partnership's marketable securities at September 30,
1996 and December 31, 1995, respectively, are as follows:

<TABLE>
<CAPTION>
                                                                 September 30, 1996           December 31, 1995
                                                               ------------------------     ---------------------

                                                               Cost           Fair          Cost           Fair
                                                               Basis          Value         Basis          Value


<S>                                                            <C>            <C>           <C>            <C>    
Investment in Continental Information
     Systems Corporation Stock                                 $ 5,463        $ 4,235       $ 5,463        $ 4,644
                                                               =======        =======       =======        =======
</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
and nine month periods ended  September 30, 1996 compared to the same periods in
1995.

The Partnership realized net income of $213,104 and $42,312 for the three months
ended  September 30, 1996 and 1995,  respectively.  Rental  income  decreased by
$93,012 or 19% between the three month periods. The decrease is primarily due to
lower  rental rates  obtained on equipment  lease  extensions  and  remarketings
resulting  after the initial lease term expires and due to a net decrease in the
overall size of the equipment  portfolio.  Interest income  decreased  $2,997 as
result of lower  average  short-term  investment  balances held during the three
month periods. The recovery of the unsecured  pre-petition claim for the quarter
ended  September  30,  1995,  was the result of the receipt of the July 20, 1995
second and final  distribution from the Trustee of the Liquidating Estate of CIS
Corporation,  et al ("the  Trustee"),  with  respect  to the  outstanding  claim
balance. The decrease in net gain on sale of equipment is primarily due to fewer
equipment sales in the third quarter of 1996.

Total  costs and  expenses  decreased  $276,364  or 62%  between the three month
periods.  The decrease in costs and  expenses is  primarily  the result of lower
depreciation expense. The decrease in depreciation expense of $309,569 or 81% is
due  to  a  large  portion  of  the  equipment  portfolio  having  become  fully
depreciated  and a net  reduction  in  the  overall  equipment  portfolio.  Also
included in depreciation  expense for the current quarter is a $200,000 reversal
of a provision for estimated  losses on the ultimate  disposition  of equipment.
Interest  expense  increased  $5,636  between the three month periods due to new
long-term debt leveraged and the continued paydown of the existing notes payable
- affiliates and long-term debt.  Management fees increased due to the increased
collection of delinquent rent  receivables in the current  quarter.  General and
administrative  expenses increased $6,551 or 21% primarily due to an increase in
the allocable salaries of the partnership  accounting and reporting personnel of
the  General  Partner.   A  provision  for  doubtful  accounts  of  $16,874  was
established  to reserve  against  delinquent  rents  receivable  in the  current
quarter.

The  Partnership  realized net income of $173,165 and $11,222 for the nine month
periods ended September 30, 1996 and 1995, respectively. Rental income decreased
$157,868 or 11%. As discussed  in the quarter  analysis  above,  the decrease in
rental income is primarily due to lower rental rates obtained on equipment lease
extensions and remarketings and due to a net reduction in the overall  equipment
portfolio.  Interest  income  decreased  significantly  between  the nine  month
periods as a result of lower average short-term balances held during the current
nine month period.  Equipment acquisitions totaled $506,622 in the current year,
reducing  the cash  balance  held by the  Partnership.  The  recovery of the net
unsecured pre-petition claim was the result of the third quarter of 1995 receipt
of the Trustee's July 20, 1995 final  distribution along with the second quarter
of 1995  establishment  of the  carrying  value  of the  stock  received  in the
December 27, 1994 distribution. The decrease in net gain on sale of equipment is
attributed to fewer equipment sales in 1996.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

Total  costs and  expenses  decreased  $347,365  or 25%  between  the nine month
periods.  The decrease in costs and  expenses is  primarily  the result of lower
depreciation  expense. As discussed above, the decrease in depreciation  expense
of $432,428 or 36% is due to a large portion of the equipment portfolio becoming
fully  depreciated  and a net  reduction  in the  overall  equipment  portfolio.
Included in depreciation expense for the nine months ended September 30, 1996 is
a $200,000  reversal of a provision  for the  estimated  losses on the  ultimate
disposition of equipment.  Interest expense  increased  significantly due to new
long-term debt leveraged and note payable - affiliates received between 1996 and
1995 and the  continued  paydown of its existing  note payable - affiliates  and
long-term debt.  Management  fees increased  $14,976 or 19% due to the increased
collection of delinquent rent  receivables in 1996.  General and  administrative
expenses  increased $19,829 or 21% primarily due to an increase in the allocable
salaries of the  partnership  accounting and reporting  personnel of the General
Partner. As discussed in the quarter analysis above, the Partnership established
a $23,068 provision for doubtful accounts in 1996 to reserve against  delinquent
rents receivable.

The Partnership  recorded net income per Limited  Partnership  Unit of $3.21 and
$1.28 for the quarters ended  September 30, 1996 and 1995,  respectively,  and a
net loss of $7.38 and $1.29 for the nine  months  ended  September  30, 1996 and
1995, respectively.  The allocation for the nine months ended September 30, 1996
and 1995,  respectively,  includes a cost recovery allocation of profit and loss
among the General and Limited  Partners  which  results in an  allocation of net
loss to the  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.

Liquidity and Capital Resources

For the nine months ended  September 30, 1996,  rental  revenue  generated  from
operating  leases  was the  primary  source  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 if it is less
marketable,  sold.  This  decision is made upon  analyzing  which  options would
generate the most favorable results.

Rental income will continue to decrease due to two factors.  First, lower rental
rates are obtained on the remarketing of existing equipment after the 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 and  notes  payable  -  affiliate
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 $1,941,171 and are to be received over the next
six years.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

As of September 30, 1996, the  Partnership's  investing  activities  resulted in
equipment  purchases of $506,622 and  equipment  sales with a  depreciated  cost
basis  of  $209,670,  generating  $130,772  in  proceeds.  Associated  with  the
equipment sales were $82,583 of loss charge offs against the reserve,  initially
set up in prior  periods for  estimated  losses on the ultimate  disposition  of
equipment.  The Partnership has no material capital expenditure  commitments and
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 the paydown on long-term debt
in the amount of $413,799 and  proceeds  from  borrowing  on  long-term  debt of
$189,942 for the nine months ended  September  30, 1996.  The  Partnership  will
payoff its remaining  long-term debt of $736,646 by 1998.  Total  long-term debt
assumed by the Partnership  from inception is $14,270,105,  for a total leverage
of 43%. The  Partnership's  financing  activities also resulted in proceeds from
the  borrowing  on notes  payable  affiliates  in the amount of $223,600 and the
paydown on notes  payable -  affiliates  during the first nine months of 1996 in
the amount of $100,000. The note payable bears interest at 8.75% and will mature
in 1996.

Cash  distributions  are  currently  at  an  annual  level  of  3%  per  Limited
Partnership Unit or $3.75 per Limited Partnership Unit on a quarterly basis. For
the  quarter  ended  September  30,  1996,  the  Partnership   declared  a  cash
distribution  of $107,471,  of which $5,374 was allocated to the General Partner
and $102,097 was allocated to the Limited  Partners.  The  distribution  will be
made  on  November  27,  1996.  The  Partnership's   distribution  rate  dropped
significantly  in 1996  from  those  paid in 1995,  due to the  large  amount of
equipment  purchases in 1996, for which there existed firm purchase  commitments
in 1995. Since the Partnership's reinvestment period ended on December 31, 1995,
the General Partner made a concerted effort to purchase as many equipment leases
as possible to sustain the  Partnership in future years.  The effort resulted in
significant  equipment  lease  acquisitions  with a resulting  reduction in cash
available for  distribution  purposes.  All future cash received will be used to
cover operating expenses and to make cash distributions to the Partners.

On  January 9, 1996,  TLP  Holding  LLC  purchased  all the common  stock of TLP
Leasing  Programs,  Inc.  from CMI Holding Co.  Under the new  ownership,  it is
expected  that TLP Leasing  Programs,  Inc. will continue to operate in the same
manner of business as it has in the past.


<PAGE>


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

                    Computer Equipment Portfolio (Unaudited)
                               September 30, 1996

Lessee

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

<TABLE>
<CAPTION>

Equipment Description                       Acquisition Price

<S>                                          <C>             
Computer peripherals                         $      2,433,333
Processors & upgrades                               1,493,181
Telecommunications                                    387,121
Other                                               1,216,666
                                             ----------------

                                             $      5,530,301
                                             ================
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                           PART II. OTHER INFORMATION

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


<S>            <C>
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
</TABLE>


<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


Date:  November 14, 1996

By:    Arthur P. Beecher,
       President