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, 1999                    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

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<CAPTION>

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



<S>           <C>                                                                                   <C>
                          INDEX                                                                     Page No.

Part I.       FINANCIAL INFORMATION

              Financial Statements

                    Balance Sheets as of March 31, 1999 and December 31, 1998                       3

                    Statements of Operations
                          Quarters Ended March 31, 1999 and 1998                                    4

                    Statements of Cash Flows
                          Quarters Ended March 31, 1999 and 1998                                    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)
                                                                                     3/31/99                 12/31/98
                                                                                 ----------------        ----------------
<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      1,388,564        $      2,046,773
     Less accumulated depreciation                                                      1,203,272               1,756,522
                                                                                 ----------------        ----------------
       Investment property, net                                                           185,292                 290,251

Cash and cash equivalents                                                                  35,774                 118,463
Rents receivable, net (note 2)                                                             19,066                   3,609
Other assets                                                                                8,906                  14,249
                                                                                 ----------------        ----------------

     Total assets                                                                $        249,038        $        426,572
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                    $         49,951        $         66,109
   Accounts payable and accrued expenses - affiliates (note 4)                             22,274                  25,775
   Accounts payable and accrued expenses                                                   20,037                  36,968
   Unearned rental revenue                                                                  5,103                   5,030
   Long-term debt, less current portion (note 5)                                                -                       -
                                                                                 ----------------        ----------------

     Total liabilities                                                                     97,365                 133,882
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                645,143                 639,846
     Cumulative cash distributions                                                       (646,143)               (640,846)
                                                                                 ----------------        ----------------
                                                                                                -                       -
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net income                                                                597,233                 670,185
     Cumulative cash distributions                                                    (12,594,019)            (12,525,954)
                                                                                 ----------------        ----------------
                                                                                          151,673                 292,690
                                                                                 ----------------        ----------------
     Total partners' equity                                                               151,673                 292,690
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $        249,038        $        426,572
                                                                                 ================        ================

                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 Operations
                   Quarters Ended March 31, 1999 and 1998
                                   (Unaudited)

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

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

<S>                                                                             <C>                <C>            
Revenue:
   Rental income                                                                $       45,805     $       168,945
   Interest income                                                                         781               1,188
   Net gain on sale
     of equipment                                                                        3,016               2,079
                                                                                --------------     ---------------

       Total revenue                                                                    49,602             172,212
                                                                                --------------     ---------------

Costs and expenses:
   Depreciation                                                                         85,808             130,750
   Interest                                                                                931               5,455
   Related party expenses (note 4):
     Management fees                                                                     4,626              12,756
     General and administrative                                                         28,944              37,680
   Provision for (reversal of)
     doubtful accounts                                                                  (3,052)              4,836
                                                                                --------------     ---------------

       Total costs and expenses                                                        117,257             191,477
                                                                                --------------     ---------------

Net income (loss)                                                               $      (67,655)    $       (19,265)
                                                                                ==============     ===============

Net income (loss) per Limited
   Partnership Unit                                                             $        (2.68)    $         (0.71)
                                                                                ==============     ===============

                 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, 1999 and 1998
                                   (Unaudited)

                                                                                           1999                      1998
                                                                                           ----                      ----

<S>                                                                                  <C>                      <C>            
Cash flows from operating activities:
   Net income (loss)                                                                 $      (67,655)          $       (19,265)
                                                                                     --------------           ---------------

   Adjustments to reconcile  net income (loss) to net cash
     provided by operating activities:
       Depreciation                                                                          85,808                   130,750
       Provision for (reversal of) doubtful accounts                                         (3,052)                    4,836
       Net gain on sale of equipment                                                         (3,016)                   (2,079)
       Net (increase) decrease in current assets                                             (7,065)                    4,372
       Net increase (decrease) in current liabilities                                       (20,359)                   17,860
                                                                                     --------------           ---------------

         Total adjustments                                                                   52,316                   155,739
                                                                                     --------------           ---------------

         Net cash (used in) provided by operating activities                                (15,339)                  136,474
                                                                                     --------------           ---------------

Cash flows from investing activities:
   Proceeds from sale of investment property                                                 22,169                     2,965
                                                                                     --------------           ---------------

         Net cash provided by investing activities                                           22,169                     2,965
                                                                                     --------------           ---------------

Cash flows from financing activities:
   Principal payments on long-term debt                                                     (16,158)                  (73,954)
   Cash distributions to partners                                                           (73,361)                 (141,601)
                                                                                     --------------           ---------------

         Net cash used in financing activities                                              (89,519)                 (215,555)
                                                                                     --------------           ---------------

Net increase (decrease) in cash and cash equivalents                                        (82,689)                  (76,116)

Cash and cash equivalents at beginning of period                                            118,463                   166,324

Cash and cash equivalents at end of period                                           $       35,774           $        90,208

Supplemental cash flow information:
   Interest paid during the period                                                   $          931           $         5,455
                                                                                     ==============           ===============
</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, 1999 and March 31, 1998
                                   (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, 1998.

(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, 1999 and December 31, 1998, the
allowance for doubtful  accounts  included in rents  receivable  was $1,200  and
$4,252, respectively. At March 31, 1999 and December 31, 1998, the allowance for
doubtful accounts included in sales receivable was $0.

(3)   Investment Property

At March 31, 1999, the Partnership  owned computer  equipment with a depreciated
cost basis of $185,292.

<PAGE>


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

                          Notes to Financial Statements
                Quarters Ended March 31, 1999 and March 31, 1998
                                   (Unaudited)

(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:

                                                 1999              1998
                                                 ----              ----

Management fees                              $      4,626       $     12,756
Reimbursable expenses paid                         32,349             31,094
                                             ------------       ------------

                                             $     36,975       $     43,850
                                             ============       ============

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, 1999 consists of one  loan  totaling  $49,951.   The
total  outstanding debt balance is  collateralized  by equipment with a net book
value of $55,489, and assignment of the related lease.

Maturities of long-term debt are as follows:

                              1999                   $       49,951
                                                     --------------

                                                     $       49,951
                                                     ==============


<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, 1999 in comparison to the quarter ended March 31, 1998.

The Partnership  realized a  net loss of  $67,655 and  $19,265 for  the quarters
ended March 31, 1999 and 1998, respectively. Rental income decreased $123,140 or
73% 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.   Interest  income  decreased as a result of lower average
short-term  investment  balances held during the current quarter. The $3,016 net
gain  on sale of  equipment recognized in  the current  quarter is the result of
sales of equipment carrying low net book values.

Total  costs and  expenses  decreased  $74,220 or 39%  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 $4,524 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  1999,  the  Partnership  reversed  a  provision for doubtful
accounts in the amount  of  $3,052  due  to  successful  collection  efforts  on
delinquent rents receivable.

The  Partnership  recorded  net loss per Limited  Partnership  Unit of $2.68 and
$0.71 for the quarters  ended March 31, 1999 and 1998, respectively.  The
allocation for the quarter ended March 31, 1999 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.

Liquidity and Capital Resources

For the quarter ended March 31, 1999,  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 through a
reduction in the rate of cash  distributions.


<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

During the last quarter of 1998, the General Partner announced its intentions of
winding down  the  operations  of  the  Partnership.   It  is  anticipated  that
substantially   all  of  the  assets will be liquidated and the proceeds will be
used to settle all outstanding  liabilities and make a final distribution during
1999.

The  Partnership's  investing  activities  resulted in sales of equipment with a
depreciated cost basis of $103,263, generating  $22,169 in proceeds.  Associated
with the equipment sales were $84,110 of losses charged off against the reserve,
initially  set up  in  prior  periods  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 included a paydown on  long-term  debt of
$16,158.  The Partnership will payoff its remaining  long-term debt of  $49,951 
in  1999.   Total debt assumed by the Partnership from inception is $14,500,441,
for a total leverage of 43%.

Cash  distributions  are  currently halted in an effort  to  minimize  costs and
accumulate cash in anticipation of a final distribution to the Partners once the
Partnership  has  been  liquidated.   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, 1999

Lessees

Elron Software, Incorporated
Hughes Aircraft Company, Incorporated
J. Walter Thompson Company

Equipment Description                       Acquisition Price

Computer peripherals                         $        651,287
Processors & upgrades                                 577,081
Telecommunications                                     46,317
Other                                                 113,879
                                             ----------------

                                             $      1,388,564
                                             ================

<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 13, 1999

By:    Arthur P. Beecher,
       President