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, 1998                    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)                                  ntification 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

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


                                     INDEX                                                                         Page No.

Part I.       FINANCIAL INFORMATION

<S>           <C>                                                                                                  <C>
              Financial Statements

                    Balance Sheets as of March 31, 1998 and December 31, 1997                                      3

                    Statements of Operations
                         Quarters Ended March 31, 1998 and 1997                                                    4

                    Statements of Cash Flows
                         Quarters Ended March 31, 1998 and 1997                                                    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
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<TABLE>
<CAPTION>

                          PART I: FINANCIAL INFORMATION

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

                                 Balance Sheets

                                     Assets                                        (Unaudited)               (Audited)
                                                                                      3/31/98                 12/31/97
                                                                                 ----------------        ----------------
<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      2,964,287        $      2,974,475
     Less accumulated depreciation                                                      2,463,295               2,341,847
                                                                                 ----------------        ----------------
       Investment property, net                                                           500,992                 632,628

Cash and cash equivalents                                                                  90,208                 166,324
Rents receivable, net (note 2)                                                             20,901                  22,796
Account receivable - affiliates                                                               486                   2,456
Other assets                                                                               30,279                  35,622
                                                                                 ----------------        ----------------

     Total assets                                                                $        642,866        $        859,826
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                    $        160,645        $        210,270
   Accounts payable and accrued expenses - affiliates (note 4)                             16,157                  12,017
   Accounts payable and accrued expenses                                                   51,598                  38,799
   Unearned rental revenue                                                                  5,899                   4,978
   Long-term debt, less current portion (note 5)                                           41,780                  66,109
                                                                                 ----------------        ----------------

     Total liabilities                                                                    276,079                 332,173
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                630,533                 625,237
     Cumulative cash distributions                                                       (631,533)               (626,237)
                                                                                 ----------------        ----------------
                                                                                                -                       -
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net income                                                                540,086                 564,650
     Cumulative cash distributions                                                    (12,321,758)            (12,185,456)
                                                                                 ----------------        ----------------
                                                                                          366,787                 527,653
                                                                                 ----------------        ----------------
     Total partners' equity                                                               366,787                 527,653
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $        642,866        $        859,826
                                                                                 ================        ================
</TABLE>

                 See accompanying notes to financial statements.


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<TABLE>
<CAPTION>

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

                            Statements of Operations
                     Quarters Ended March 31, 1998 and 1997
                                   (Unaudited)

                                                                                       1998                     1997
                                                                                -----------------        ----------------

<S>                                                                             <C>                      <C>             
Revenue:
   Rental income                                                                $         168,945        $        254,428
   Other income                                                                                 -                  26,713
   Interest income                                                                          1,188                   1,379
   Net gain on sale of equipment                                                            2,079                 157,008
   Net loss on sale of marketable securities                                                    -                    (117)
                                                                                -----------------        ----------------

       Total revenue                                                                      172,212                 439,411
                                                                                -----------------        ----------------

Costs and expenses:
   Depreciation                                                                           130,750                 198,429
   Interest                                                                                 5,455                  11,055
   Related party expenses (note 4):
     Management fees                                                                       12,756                  14,766
     General and administrative                                                            37,680                  42,809
   Provision for (reversal of) doubtful accounts                                            4,836                 (23,790)
                                                                                -----------------        ----------------

       Total costs and expenses                                                           191,477                 243,269
                                                                                -----------------        ----------------

Net income (loss)                                                               $         (19,265)       $        196,142
                                                                                =================        ================

Net income (loss) per Limited Partnership Unit                                  $           (0.71)       $           7.07
                                                                                =================        ================

                 See accompanying notes to financial statements.
</TABLE>


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<TABLE>
<CAPTION>

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

                            Statements of Cash Flows
                     Quarters Ended March 31, 1998 and 1997
                                   (Unaudited)

                                                                                       1998                    1997
                                                                                -----------------        ----------------

<S>                                                                             <C>                      <C>             
Cash flows from operating activities:
   Net income (loss)                                                            $         (19,265)       $        196,142
                                                                                -----------------        ----------------

   Adjustments to reconcile  net income (loss) to net cash
     provided by operating activities:
       Depreciation                                                                       130,750                 198,429
       Provision for (reversal of) doubtful accounts                                        4,836                 (23,790)
       Net gain on sale of equipment                                                       (2,079)               (157,008)
       Net loss on sale of marketable securities                                                -                     117
       Net (increase) decrease in current assets                                            4,372                (102,996)
       Net increase (decrease) in current liabilities                                      17,860                    (227)
                                                                                -----------------        ----------------

         Total adjustments                                                                155,739                 (85,475)
                                                                                -----------------        ----------------

         Net cash provided by operating activities                                        136,474                 110,667
                                                                                -----------------        ----------------

Cash flows from investing activities:
   Proceeds from sale of investment property                                                2,965                 162,513
   Proceeds from sale of marketable securities                                                  -                     633
                                                                                -----------------        ----------------

         Net cash provided by (used in) investing activities                                2,965                 163,146
                                                                                -----------------        ----------------

Cash flows from financing activities:
   Proceeds from borrowings on long-term debt                                                   -                 230,336
   Principal payments on long-term debt                                                   (73,954)               (291,205)
   Cash distributions to partners                                                        (141,601)                (71,647)
                                                                                -----------------        ----------------

         Net cash (used in) provided by financing activities                             (215,555)               (132,516)
                                                                                -----------------        ----------------

Net increase (decrease) in cash and cash equivalents                                      (76,116)                141,297

Cash and cash equivalents at beginning of period                                          166,324                  36,022
                                                                                -----------------        ----------------

Cash and cash equivalents at end of period                                      $          90,208        $        177,319
                                                                                =================        ================

Supplemental cash flow information:
   Interest paid during the period                                              $           5,455        $         11,055
                                                                                =================        ================
</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, 1998 and March 31, 1997
                                   (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, 1997.

(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, 1998 and December 31, 1997, the
allowance for doubtful  accounts  included in rents  receivable  was $30,821 and
$25,985,  respectively.  At March 31, 1998 and December 31, 1997,  the allowance
for doubtful accounts included in sales receivable was $0.

(3)   Investment Property

At March 31, 1998, the Partnership  owned computer  equipment with a depreciated
cost basis of $500,992.

(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:

                                                1998              1997
                                                ----              ----

Management fees                             $     12,756             14,766
Reimbursable expenses paid                        31,094             41,463
                                            ------------       ------------

                                            $     43,850       $     56,229
                                            ============       ============



<PAGE>


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

                          Notes to Financial Statements
                Quarters Ended March 31, 1998 and March 31, 1997
                                   (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, 1998  consists of one loan in the amount of $21,347
from Pullman Capital  Corporation  with an interest rate of 8.00% and four loans
totaling $181,078 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 $411,282, and assignment of
the related leases.

Maturities of long-term debt are as follows:

                      1998                   $      136,316
                      1999                           66,109
                                             --------------

                                             $      202,425
                                             ==============


<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, 1998 in comparison to the quarter ended March 31, 1997.

The  Partnership  realized net income  (loss) of $(19,265)  and $196,142 for the
quarters ended March 31, 1998 and 1997,  respectively.  Rental income  decreased
$85,483 or 34% 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 $2,079 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  $51,792 or 21%  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
$5,600 due to the continued paydown of long-term debt. Management fees decreased
with the decline in rental income on operating leases.  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  (loss) per Limited  Partnership  Unit of
$(0.71) and $7.07 for the quarters ended March 31, 1998 and 1997,  respectively.
The  allocation  for the quarter  ended March 31, 1998  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, 1998,  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.

The  Partnership's  investing  activities  resulted in sales of equipment with a
depreciated  cost basis of $885,  generating  $2,965 in  proceeds.  Included  in
equipment sales is a $553 loss. The Partnership  will not purchase  equipment in
the future as the Partnership has reached the end of its reinvestment period.

The  Partnership's  activities  included a paydown on long-term debt of $73,954.
The  Partnership  will payoff its remaining  long-term debt of $202,425 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. 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, 1998

Lessee

Carr Separations, Incorporated
Chrysler Corporation
Cincinnati Gas & Electric Company
Coulter Corporation
Cybersmith, 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                         $      1,300,764
Processors & upgrades                                 803,108
Telecommunications                                     89,234
Other                                                 771,181
                                             ----------------

                                             $      2,964,287
                                             ================

<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


Date:   May 12, 1998

By:     Arthur P. Beecher,
        President