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 June 30, 1997                     Commission File No. 33-18859


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


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


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


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

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


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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                  Yes X No ___

                             There are no Exhibits.

                                  Page 1 of 14

<PAGE>

<TABLE>
<CAPTION>

                  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 June 30, 1997 and December 31, 1996                                    3

                    Statements of Operations
                          Quarters Ended June 30, 1997 and 1996 and
                          Six Months Ended June 30, 1997 and 1996                                               4

                    Statements of Cash Flows
                          Six Months Ended June 30, 1997 and 1996                                               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)
                                                                                      6/30/97                 12/31/96
                                                                                 ----------------        ----------------

<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      3,651,020        $      5,084,339
     Less accumulated depreciation                                                      2,825,222               3,807,667
                                                                                 ----------------        ----------------
       Investment property, net                                                           825,798               1,276,672

Cash and cash equivalents                                                                 210,179                  36,022
Rents receivable, net (note 2)                                                             42,555                  64,103
Sales receivable, net (note 2)                                                            103,190                   6,425
Marketable securities (note 6)                                                                  -                     600
Other assets                                                                               46,915                   1,214
                                                                                 ----------------        ----------------

     Total assets                                                                $      1,228,637        $      1,385,036
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                    $        292,816        $        437,438
   Accounts payable and accrued expenses - affiliates (note 4)                             18,986                  28,097
   Accounts payable and accrued expenses                                                  122,991                 144,138
   Unearned rental revenue                                                                  5,563                  29,795
   Long-term debt, less current portion (note 5)                                          126,907                 153,736
                                                                                 ----------------        ----------------

     Total liabilities                                                                    567,263                 793,204
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                620,590                 610,700
     Cumulative cash distributions                                                       (617,129)               (611,699)
     Unrealized losses on marketable securities (note 6)                                        -                      (1)
                                                                                 ----------------        ----------------
                                                                                            4,461                       -
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net income                                                                353,584                  84,457
     Cumulative cash distributions                                                    (11,845,130)            (11,640,935)
     Unrealized losses on marketable securities (note 6)                                        -                    (149)
                                                                                 ----------------        ----------------
                                                                                          656,913                 591,832
                                                                                 ----------------        ----------------
     Total partners' equity                                                               661,374                 591,832
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $      1,228,637        $      1,385,036
                                                                                 ================        ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Operations
                                   (Unaudited)

                                                     Quarters Ended                         Six Months Ended
                                                        June 30,                                June 30,
                                           --------------------------------       ----------------------------------
                                                 1997              1996                1997                1996
                                           --------------------------------       ----------------------------------

<S>                                        <C>               <C>                  <C>                <C>            
Revenue:
   Rental income                           $     350,259     $      375,727       $      604,687     $       832,863
   Other income                                   10,964                  -               37,677                   -
   Interest income                                 2,273              1,306                3,652               2,755
   Net (loss) gain on sale
     of equipment                                (55,378)             2,081              101,630               3,221
   Net loss on sale of
     marketable securities                             -                  -                 (117)                  -
                                           -------------     --------------       --------------     ---------------

       Total revenue                             308,118            379,114              747,529             838,839
                                           -------------     --------------       --------------     ---------------

Costs and expenses:
   Depreciation                                  151,190            281,337              349,619             684,446
   Interest                                       10,377             22,854               21,432              46,203
   Related party expenses (note 4):
     Management fees                              21,136             36,936               35,902              64,957
     General and administrative                   38,867             40,302               81,676              76,978
   (Reversal of) provision for
     doubtful accounts                             3,673              6,194              (20,117)              6,194
                                           -------------     --------------       --------------     ---------------

       Total costs and expenses                  225,243            387,623              468,512             878,778
                                           -------------     --------------       --------------     ---------------

Net income (loss)                          $      82,875     $       (8,509)      $      279,017     $       (39,939)
                                           =============     ==============       ==============     ===============

Net income (loss) per Limited
   Partnership Unit                        $        2.81     $        (0.39)      $         9.88     $         (1.57)
                                           =============     ==============       ==============     ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Cash Flows
                     Six Months Ended June 30, 1997 and 1996
                                   (Unaudited)

                                                                                           1997                      1996
                                                                                           ----                      ----

<S>                                                                                  <C>                      <C>             
Cash flows from operating activities:
   Net income (loss)                                                                 $      279,017           $       (39,939)
                                                                                     --------------           ---------------

   Adjustments to reconcile  net income (loss) to net cash provided
     by operating activities:
       Depreciation                                                                         349,619                   684,446
       (Reversal of) provision for doubtful accounts                                        (20,117)                    6,194
       Net gain on sale of equipment                                                       (101,630)                   (3,221)
       Net loss on sale of marketable securities                                                117                         -
       Net (increase) decrease in current assets                                           (100,801)                   98,684
       Net decrease in current liabilities                                                  (54,490)                 (319,205)
                                                                                     --------------           ---------------

         Total adjustments                                                                   72,698                   466,898
                                                                                     --------------           ---------------

         Net cash provided by operating activities                                          351,715                   426,959
                                                                                     --------------           ---------------

Cash flows from investing activities:
   Purchase of investment property                                                                -                  (506,622)
   Proceeds from sale of investment property                                                202,885                   130,308
   Proceeds from sale of marketable securities                                                  633                         -
                                                                                     --------------           ---------------

         Net cash provided by (used in) investing activities                                203,518                  (376,314)
                                                                                     --------------           ---------------

Cash flows from financing activities:
   Proceeds from borrowing on notes payable - affiliate                                           -                   124,147
   Proceeds from borrowing on long-term debt                                                230,336                         -
   Principal payments on long-term debt                                                    (401,787)                  (81,258)
   Cash distributions to partners                                                          (209,625)                 (286,589)
                                                                                     --------------           ---------------

         Net cash used in financing activities                                             (381,076)                 (243,700)
                                                                                     --------------           ---------------

Net increase (decrease) in cash and cash equivalents                                        174,157                  (193,055)

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

Cash and cash equivalents at end of period                                           $      210,179           $       143,305
                                                                                     ==============           ===============

Supplemental cash flow information:
   Interest paid during the period                                                   $       21,432           $        40,324
                                                                                     ==============           ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


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

                          Notes to Financial Statements
                Six Months Ended June 30, 1997 and June 30, 1996
                                   (Unaudited)

(1)   Organization and Partnership Matters

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

(2)   Significant Accounting Policies

Allowance for Doubtful Accounts

The financial  statements  include allowances for estimated losses on receivable
balances.  The  allowances  for  doubtful  accounts  are based on past write off
experience  and an evaluation  of potential  uncollectible  accounts  within the
current  receivable  balances.  Receivable  balances  which are determined to be
uncollectible  are charged against the allowance and subsequent  recoveries,  if
any, are credited to the allowance.  At June 30, 1997 and December 31, 1996, the
allowance for doubtful  accounts  included in rents  receivable  was $27,973 and
$51,763,  respectively.  The allowance for doubtful  accounts  included in sales
receivable  was  $14,773 and $11,100 at June 30,  1997 and  December  31,  1996,
respectively.

Reclassifications

Certain prior year financial  statement items have been  reclassified to conform
with the current year's financial statement presentation.

(3)   Investment Property

At June 30, 1997, the  Partnership  owned computer  equipment with a depreciated
cost  basis of  $758,714,  subject  to  existing  leases  and  equipment  with a
depreciated cost basis of $67,084 in inventory,  awaiting  re-lease or sale. All
purchases of computer  equipment are subject to a 3% acquisition fee paid to the
General Partner.


<PAGE>


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

                          Notes to Financial Statements
                Six Months Ended June 30, 1997 and June 30, 1996
                                   (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 six months ended
June 30 are as follows:

<TABLE>
<CAPTION>
                                                      1997              1996
                                                      ----              ----

<S>                                               <C>                <C>         
Equipment acquisition fees                        $          -       $     14,756
Management fees                                         35,902             64,957
Reimbursable expenses paid                              80,367             82,964
                                                  ------------       ------------

                                                  $    116,269       $    162,677
                                                  ============       ============
</TABLE>

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 June 30, 1997  consists of one loan for $82,892  from Pullman
Capital  Corporation  with an  interest  rate of 8.00% and four  loans  totaling
$336,831  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 $579,296, and assignment of
the related leases.

Maturities of long-term debt are as follows:

                       1997                   $      143,343
                       1998                          210,271
                       1999                           66,109
                                              --------------

                                              $      419,723
                                              ==============


<PAGE>


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

                          Notes to Financial Statements
                Six Months Ended June 30, 1997 and June 30, 1996
                                   (Unaudited)

(6)   Fair Values of Financial Instruments

Pursuant to Statement of Financial Accounting Standards No. 115, "Accounting for
Certain Investments in Debt and Equity  Securities," which requires  investments
in debt and equity  securities  other than those  accounted for under the equity
method  to be  carried  at fair  value or  amortized  cost  for debt  securities
expected to be held to maturity,  the Partnership has classified its investments
in equity  securities as available  for sale.  Accordingly,  the net  unrealized
gains and losses computed in marking these  securities to market are reported as
a component  of partners'  equity.  At June 30,  1997,  there are no  marketable
securities owned by the Partnership,  therefore,  there is no unrealized gain or
loss included in partners' equity.

The fair value is based on currently  quoted market  prices.  The cost basis and
estimated fair value of the Partnership's marketable securities at June 30, 1997
and December 31, 1996, respectively, are as follows:

<TABLE>
<CAPTION>
                                                                            June 30, 1997               December 31, 1996
                                                                       ------------------------     ---------------------------

                                                                       Cost           Fair          Cost               Fair
                                                                       Basis          Value         Basis              Value


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



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

Results of Operations

The following discussion relates to the Partnership's operations for the quarter
and six month periods ended June 30, 1997 compared to the same periods in 1996.

The Partnership  realized net income of $82,875 and a net loss of $8,509 for the
quarters ended June 30, 1997 and 1996, respectively.  Rental income decreased by
$25,468 or 7% 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 increased as a
result of higher average short-term  investment balances held during the current
quarter.  The net loss on sale of equipment in the current  quarter is primarily
due to sales of equipment carrying high net book values.

Total  costs and  expenses  decreased  $162,380  or 42%  between the three month
periods.  The  decrease  in costs and  expenses  is mainly  due to the  $130,147
decline in depreciation  expense during the current quarter in comparison to the
same  period in 1996.  The  decrease in  depreciation  expense is due to a large
portion of the equipment  portfolio  becoming  fully  depreciated  and due to an
overall reduction in the equipment portfolio. Interest expense decreased $12,477
as the  Partnership  continued to paydown the principle on long-term debt during
the current  quarter.  Management fees decreased in correlation with the decline
in rental income.  General and administrative  expenses remained relatively flat
between the three month periods. A provision for doubtful accounts of $3,673 was
established  to reserve  against  delinquent  rents  receivable  in the  current
quarter.

The  Partnership  realized  net income of $279,017 and a net loss of $39,939 for
the six month periods ended June 30, 1997 and 1996, respectively.  Rental income
decreased  $228,176 or 27%. As  discussed  in the quarter  analysis  above,  the
decrease in rental  income is primarily  due to lower rental rates  generated on
equipment  lease  extensions  and  remarketings  and due to a  reduction  in the
overall  equipment  portfolio.  Other  income is the result of the  reduction of
overstated  liabilities  recorded in prior periods.  Interest  income  increased
between the six month periods as a result of higher average short-term  balances
held during the  current  six month  period.  The  $101,630  net gain on sale of
equipment 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.



<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  $410,266  or 47%  between  the six month
periods. The decrease in costs and expenses is mainly due to the $334,827 or 49%
decline in depreciation expense. As discussed in the quarter analysis above, the
decrease  in  depreciation  expense is due to a large  portion of the  equipment
portfolio  becoming  fully  depreciated  and due to an overall  reduction in the
equipment  portfolio.  Interest  expense  decreased  $24,771 as the  Partnership
continued to paydown the  principle on its  long-term  debt during the six month
period  ended June 30, 1997.  Management  fees  decreased  between the six month
periods due to the decline in rental income. General and administrative expenses
increased  $4,698 or 6% mainly due to an increase in the  allocable  salaries of
the partnership accounting and reporting personnel of the General Partner during
the current year. The $20,117 reversal of provision for doubtful accounts is the
result of successful collection efforts of delinquent rents receivable in 1997.

The Partnership  recorded net income per Limited Partnership Unit of $2.81 and a
net loss per Limited  Partnership  Unit of $0.39 for the quarters ended June 30,
1997 and 1996,  respectively,  and net  income and a net loss of $9.88 and $1.57
for the six months ended June 30, 1997 and 1996,  respectively.  The  allocation
for the six months ended June 30, 1997  includes a cost  recovery  allocation of
profit and loss among the  General  and  Limited  Partners.  This cost  recovery
allocation  is  required  to  maintain  capital  accounts  consistent  with  the
distribution  provisions of the Partnership  Agreement.  In certain periods, the
cost  recovery of profit and loss may result in an allocation of net loss to the
Limited Partners in instances when the Partnership's  operations were profitable
for the period.

Liquidity and Capital Resources

For the six months ended June 30, 1997,  rental revenue generated from operating
leases  and  proceeds  from the sale of  investment  property  were the  primary
sources of funds for the Partnership. As equipment leases terminate, the General
Partner  determines  if the  equipment  will be  extended  to the  same  lessee,
remarketed to another  lessee,  or sold.  This  decision is made upon  analyzing
which option generates the most favorable result.

Rental income has continued to decrease due to two factors.  First,  lower rates
are obtained on the  remarketing of existing  equipment  upon  expiration of the
original leases. Typically the remarketed rates are lower due to the decrease in
useful life of the equipment. Second, the increasing change of technology in the
computer  industry  usually  decreases  the  demand  for older  equipment,  thus
increasing the possibility of obsolescence.  Both of these factors together will
cause  remarketed  rates to be lower than original  rates and will cause certain
leases to terminate upon expiration.  This decrease  however,  should not affect
the Partnership's  ability to meet its future cash  requirements,  including its
long-term  debt  obligations.  To the extent that  future  cash flows  should be
insufficient  to meet the  Partnership's  operating  expenses  and  liabilities,
additional funds could be obtained  through the sale of equipment,  or through a
reduction in the rate of cash  distributions.  Future rental  revenues amount to
$1,131,315 and are to be received over the next five years.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

The  Partnership's  investing  activities  resulted in sales of equipment with a
depreciated cost basis of $39,558,  generating $202,885 in proceeds. Included in
equipment  sales is a  $61,697  loss  which was  charged  against  the  reserve,
initially  set up in a prior  period  to  account  for  estimated  losses on the
ultimate  disposition of equipment.  The Partnership will not purchase equipment
in the future as the Partnership has reached the end of its reinvestment period.

The Partnership's  financing  activities  resulted in proceeds from borrowing on
long-term debt of $230,336. The Partnership's activities also included a paydown
on  long-term  debt of  $401,787.  The  Partnership  will  payoff its  remaining
long-term debt of $419,723 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  5%  per  Limited
Partnership Unit or $6.25 per Limited Partnership Unit on a quarterly basis. For
the quarter ended June 30, 1997, the Partnership declared a cash distribution of
$176,222,  of which $6,059 was allocated to the General Partner and $170,163 was
allocated to the Limited  Partners.  The distribution will be made on August 29,
1997. The  Partnership  expects to continue  paying at or near this level in the
future.  The effects of inflation have not been  significant to the  Partnership
and are not expected to have any material impact in future periods.



<PAGE>


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

                    Computer Equipment Portfolio (Unaudited)
                                  June 30, 1997

Lessee

Carr  Separations,  Incorporated
Chrysler   Corporation
Coulter  Corporation
Cybersmith,  Incorporated
Dave's Custom Caps
H.J. Meyer  Company, Incorporated
Hughes Aircraft Company, Incorporated
Internet Access Company, Incorporated
J. Walter Thompson  Company
Jumbo Sports,  Incorporated
ON Technology  Corporation
Sero Company, Incorporated
UNIFI Communications, Inc.

Equipment Description                       Acquisition Price

Computer peripherals                         $      1,606,449
Processors & upgrades                                 985,775
Telecommunications                                    255,571
Other                                                 803,225
                                             ----------------

                                             $      3,651,020
                                             ================

<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:   August 13, 1997

By:     Arthur P. Beecher,
        President