<PAGE>

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

                                    FORM 10-Q


(Mark One)

[XX] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the quarterly period ended  September 30, 1996
                                ------------------------------------------------

                                       OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from                        to
                               ----------------------    -----------------------

For Quarter Ended September 30, 1996                 Commission File No. 0-18394


                American Income Partners IV-C Limited Partnership
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Massachusetts                                                 04-3036127
--------------------------------------               ---------------------------
(State or other jurisdiction of                             (IRS Employer
incorporation or organization)                            Identification No.)

98 North Washington Street, Boston, MA                           02114
--------------------------------------               ---------------------------
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code   (617) 854-5800
                                                     ---------------------------


--------------------------------------------------------------------------------
              (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
                                        ---       ---

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court 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         No
                                                       ---        ---

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                                    FORM 10-Q

                                      INDEX


                                                                            PAGE

PART I.  FINANCIAL INFORMATION

  ITEM 1.  FINANCIAL STATEMENTS

    Statement of Financial Position at September 30, 1996 and
    December 31, 1995                                                          3

    Statement of Operations for the Three and Nine Months Ended
    September 30, 1996 and 1995                                                4

    Statement of Cash Flows for the Nine Months Ended
    September 30, 1996 and 1995                                                5

    Notes to the Financial Statements                                       6-10


  ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS                   11-14


PART II.  OTHER INFORMATION

  ITEMS 1-6                                                                   15

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                         STATEMENT OF FINANCIAL POSITION
                    SEPTEMBER 30, 1996 AND DECEMBER 31, 1995

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                     ASSETS
                                                                        1996           1995
<S>                                                                 <C>            <C>
ASSETS:
  Cash and cash equivalents                                         $  1,554,117   $  2,063,872
  Rents receivable, net of allowance for doubtful accounts
    of $35,000 at December 31, 1995                                            -        272,111
  Due from Buyer                                                       3,434,623              -
  Accounts receivable--affiliate                                       2,920,356        377,124
  Equipment at cost, net of accumulated depreciation
    of $14,056,730 at December 31, 1995                                        -      6,409,784
                                                                    ------------   ------------

        Total assets                                                $  7,909,096   $  9,122,891
                                                                    ------------   ------------
                                                                    ------------   ------------

                       LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
  Notes payable                                                     $    265,287   $    387,188
  Accrued interest                                                         1,506          2,204
  Accrued liabilities                                                     84,936         20,000
  Accrued liabilities--affiliate                                          32,372         18,360
  Deferred rental income                                                       -         11,471
  Cash distributions payable to partners                               6,571,296        802,160
                                                                    ------------   ------------

        Total liabilities                                              6,955,397      1,241,383
                                                                    ------------   ------------

PARTNERS' CAPITAL (DEFICIT):
  General Partners                                                      (269,757)      (200,479)
  Limited Partnership Interests (1,270,622 Units;
    initial purchase price of $25 each)                                1,223,456      8,081,987
                                                                    ------------   ------------

        Total partners' capital                                          953,699      7,881,508
                                                                    ------------   ------------

Total liabilities and partners' capital                             $  7,909,096   $  9,122,891
                                                                    ------------   ------------
                                                                    ------------   ------------
</TABLE>


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.


                                        3

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                             STATEMENT OF OPERATIONS
         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                THREE MONTHS ENDED             NINE MONTHS ENDED
                                                   SEPTEMBER 30,                 SEPTEMBER 30,
                                                1996           1995           1996           1995

<S>                                        <C>            <C>            <C>            <C>
INCOME:
  Lease revenue                            $    790,492   $    701,589   $  1,874,442   $  2,241,342
  Interest income                                34,980         32,183         88,177         95,476
  Gain (loss) on sale of equipment             (197,594)        83,725        (48,264)       455,051
                                           ------------   ------------   ------------   ------------

        Total income                            627,878        817,497      1,914,355      2,791,869
                                           ------------   ------------   ------------   ------------

EXPENSES:
  Depreciation                                   95,936        234,491        399,998        721,117
  Interest expense                                5,344         10,310         17,344         35,543
  Equipment management fees--affiliate           39,524         35,079         93,722        112,067
  Operating expenses--affiliate                 117,002         23,615        155,484         87,293
                                           ------------   ------------   ------------   ------------

        Total expenses                          257,806        303,495        666,548        956,020
                                           ------------   ------------   ------------   ------------

NET INCOME                                 $    370,072   $    514,002   $  1,247,807   $  1,835,849
                                           ------------   ------------   ------------   ------------
                                           ------------   ------------   ------------   ------------

NET INCOME PER LIMITED PARTNERSHIP UNIT       $  0.29        $  0.40        $  0.97        $  1.43
                                              -------        -------        -------        -------
                                              -------        -------        -------        -------

CASH DISTRIBUTIONS DECLARED PER LIMITED
PARTNERSHIP UNIT                              $  5.12        $  0.62        $  6.37        $  1.87
                                              -------        -------        -------        -------
                                              -------        -------        -------        -------
</TABLE>


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.


                                        4

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                             STATEMENT OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                       1996           1995
<S>                                                                                <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                       $  1,247,807   $  1,835,849
  Adjustments to reconcile net income to cash from operating activities-
    Depreciation                                                                        399,998        721,117
    (Gain) loss on sale of equipment                                                     48,264       (455,051)
    Decrease in allowance for doubtful accounts                                         (25,000)             -
    Changes in assets and liabilities-
      Decrease (increase) in-
        Rents receivable                                                                297,111        221,672
        Due from Buyer                                                                  (14,879)             -
        Accounts receivable--affiliate                                                 (260,232)        17,831
      Increase (decrease) in-
        Accrued interest                                                                   (698)       (12,345)
        Accrued liabilities                                                              64,936          3,075
        Accrued liabilities--affiliate                                                   14,012         (3,338)
        Deferred rental income                                                          (11,471)         5,028
                                                                                   ------------   ------------

            Cash from operating activities                                            1,759,848      2,333,838
                                                                                   ------------   ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from equipment sales                                                         258,778        568,486
                                                                                   ------------   ------------

            Cash from investing activities                                              258,778        568,486
                                                                                   ------------   ------------

CASH FLOWS USED IN FINANCING ACTIVITIES:
  Principal payments--notes payable                                                    (121,901)      (391,315)
  Distributions paid                                                                 (2,406,480)    (2,406,480)
                                                                                   ------------   ------------

            Cash used in financing activities                                        (2,528,381)    (2,797,795)
                                                                                   ------------   ------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                   (509,755)       104,529

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                        2,063,872      2,231,880
                                                                                   ------------   ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                           $  1,554,117   $  2,336,409
                                                                                   ------------   ------------
                                                                                   ------------   ------------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest                                           $     18,042   $     47,888
                                                                                   ------------   ------------
                                                                                   ------------   ------------

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
  As discussed in Note 1, the Partnership entered into a sale transaction to
  dispose of its equipment portfolio.  This transaction was closed on
  September 30, 1996.  The Partnership received net sales proceeds of
  $3,419,744, a portion of which was subsequently used to repay outstanding
  principal and interest of $265,287 and $1,506, respectively.  The remainder,
  $3,152,951, was deposited into an escrow account and transferred to the
  Partnership on October 3, 1996.  The net sale proceeds have been reflected as
  Due from Buyer on the Statement of Financial Position at September 30, 1996.

  As discussed in Notes 1 and 4, the Partnership entered into an additional sale
  transaction to dispose of its interest in an aircraft leased to Northwest
  Airlines, Inc.  This transaction was settled on September 30, 1996.  The net
  sales proceeds of $2,283,000 were deposited into an escrow account and
  transferred to the Partnership on October 3, 1996.  This amount has been
  included in Accounts Receivable-Affiliate on the Statement of Financial
  Position at September 30, 1996.

</TABLE>


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.


                                        5

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996

                                   (UNAUDITED)


(1)  BASIS OF PRESENTATION

     The financial statements presented herein are prepared in conformity with
     generally accepted accounting principles and the instructions for preparing
     Form 10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
     Commission, and are unaudited.  As such, these financial statements do not
     include all information and footnote disclosures required under generally
     accepted accounting principles for complete financial statements, and
     accordingly, the accompanying financial statements should be read in
     conjunction with the footnotes presented in the 1995 Annual Report.  Except
     as disclosed herein, there has been no material change to the information
     presented in the footnotes to the 1995 Annual Report.

     In the opinion of management, all adjustments (consisting of normal and
     recurring adjustments) considered necessary to present fairly the financial
     position at September 30, 1996 and December 31, 1995 and results of
     operations for the three and nine month periods ended September 30, 1996
     and 1995 have been made and are reflected.

     On September 30, 1996, the Partnership sold all of its remaining equipment
     assets, excluding its interest in an aircraft, for $3,419,744 (see Notes 4
     and 5).  In October 1996, the Partnership filed Form 8-K, which provided a
     description of the remarketing process and the terms of sale.  The entire
     remarketing effort was undertaken jointly by 15 individual equipment
     leasing programs, consisting of the Partnership and 14 affiliated
     partnerships, each of which individually executed separate purchase and
     sale agreements with RSL Finance Limited Partnership II (the Buyer) and
     certain of which entered into a collective purchase and sale agreement with
     Northwest Airlines Inc. (NWA) to sell all or a portion of their equipment
     assets (the Sale Assets).  The proceeds were first used to repay the entire
     outstanding balance due under the notes payable and the associated interest
     of $265,287 and $1,506, respectively.  Certain of these partnerships,
     including the Partnership, sold their collective interest in a McDonnell
     Douglas MD-82 aircraft (NWA Aircraft) to NWA.  The net consideration for
     this aircraft was allocated first to remaining lease rental obligations and
     second to sale proceeds.  The Partnership's proportionate share of this
     consideration was $2,608,000, including $2,283,000 representing net sale
     proceeds (see Notes 3 and 4). The Buyer also purchased certain of the
     Partnership's rents receivable equal to $14,879 at September 30, 1996.

     The Managing General Partner anticipates that the Partnership will be
     dissolved on or before December 31, 1996 in accordance with the
     Partnership's Amended and Restated Agreement and Certificate of Limited
     Partnership.  Prior to December 31, 1996, the Managing General Partner will
     wind up the operations of the Partnership and make a liquidating
     distribution of $6,571,296 to the Partners.  The distribution approximates
     the Partnership's available cash net of estimated wind up costs and a
     contingency reserve.  In November 1996, the contingency reserve of $775,000
     was deposited in a separate account to cover any unforeseen liabilities
     that may arise in future periods.  At such time as


                                        6

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996

                                   (Continued)



(1)  BASIS OF PRESENTATION (Continued)

     the Managing General Partner considers appropriate, any balance in the
     reserve account will be distributed to the Partners according to their
     respective ownership interests in the Partnership at the date of its
     dissolution (see Note 6).

     The financial statements presented have been prepared on a going-concern
     basis through September 30, 1996.  Due to the imminent dissolution of the
     Partnership requiring liquidation and distribution of its net assets, a
     statement of net assets in liquidation as of September 30, 1996 is
     presented below.  This statement is prepared based on anticipated
     liquidating values of assets and liabilities.  Management has determined
     the liquidating values of amounts receivable based on collectibility of
     balances prior to any final distribution and termination of the
     Partnership.  Accrued liabilities have been estimated based on the existing
     obligations and anticipated fees and costs associated with the sales
     transactions and the wind-up effort.  Cash distributions to partners,
     including contingency reserves, may vary depending upon the realization of
     the amounts estimated by management.  Values estimated by management may be
     different from actual amounts.

               Assets:
                 Cash and cash equivalents                $  1,554,117
                 Due from Buyer                              3,434,623
                 Accounts receivable--affiliate              2,920,356
                                                          ------------

                       Total assets                       $  7,909,096
                                                          ------------
                                                          ------------

               Liabilities:
                 Notes payable                              $  265,287
                 Accrued interest                                1,506
                 Accrued liabilities                            84,936
                 Accrued liabilities--affiliate                 32,372
                 Cash distributions payable to partners,
                  including contingency reserve              7,524,995
                                                          ------------

                       Total liabilities                  $  7,909,096
                                                          ------------
                                                          ------------

               Net assets                                 $          -
                                                          ------------
                                                          ------------

(2)  CASH

     The Partnership invests excess cash with large institutional banks in
     reverse repurchase agreements with overnight maturities.  The reverse
     repurchase agreements are secured by U.S. Treasury Bills or interests in
     U.S. Government securities.  At September 30, 1996, the Partnership had
     $1,550,000 invested in reverse repurchase agreements.


                                        7

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996

                                   (Continued)



(3)  REVENUE RECOGNITION

     Rents were payable to the Partnership monthly, quarterly or semiannually,
     and no significant amounts were calculated on factors other than the
     passage of time.  The leases were accounted for as operating leases and
     were noncancelable.  Rents received prior to their due dates were deferred.
     Lease rentals, representing early termination rents, were recognized as
     revenue in the period in which they were received.

     As discussed in Note 1, the Partnership realized $325,000 of early
     termination rents in connection with the sale of the NWA Aircraft.

(4)  EQUIPMENT

     The following is a summary of equipment owned by the Partnership
     immediately prior to the sale transactions described in Note 1.




                                                        LEASE TERM    EQUIPMENT
                          EQUIPMENT TYPE                 (MONTHS)      AT COST

           Vessels                                          63-72   $  8,479,038
           Aircraft                                         38-72      4,579,905
           Furniture and fixtures                           17-96      2,113,099
           Manufacturing                                    36-60      1,514,381
           Retail store fixtures                            12-60        804,959
           Materials handling                                3-60        426,161
           Research and test                                 1-24        414,282
           Communications                                   31-60         97,130
           Tractors and heavy duty trucks                    1-72         54,497
           Photocopying                                     12-60          7,503
           Computers and peripherals                        36-60          6,429
           Medical                                          54-60            544
                                                                    ------------

                                             Total equipment cost     18,497,928

                                         Accumulated depreciation   (12,500,923)
                                                                    ------------

                       Equipment, net of accumulated depreciation   $  5,997,005
                                                                    ------------
                                                                    ------------

     As discussed in Note 1, on September 30, 1996, the Partnership sold all of
     the foregoing equipment for $5,702,744, including $2,283,000 of net sales
     proceeds related to the NWA Aircraft.


                                        8

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996

                                   (Continued)



(5)  RELATED PARTY TRANSACTIONS

     All operating expenses incurred by the Partnership are paid by American
     Finance Group (AFG) on behalf of the Partnership and AFG is reimbursed at
     its actual cost for such expenditures.  Fees and other costs incurred
     during each of the nine month periods ended September 30, 1996 and 1995,
     which were paid or accrued by the Partnership to AFG or its Affiliates, are
     as follows:

                                                1996           1995

          Equipment management fees          $   93,722     $  112,067
          Administrative charges                 21,000         15,750
          Reimbursable operating expenses
           due to third parties                 134,484         71,543
                                             ----------     ----------

                Total                        $  249,206     $  199,360
                                             ----------     ----------
                                             ----------     ----------

     Administrative charges and reimbursable operating expenses due to third
     parties in 1996 include all costs anticipated in connection with the
     Partnership's wind-up and dissolution.

     All rents and proceeds from the sale of equipment, including the sales
     transactions described in Note 1, are paid directly to either AFG or to a
     lender.  AFG temporarily deposits collected funds in a separate interest-
     bearing escrow account prior to remittance to the Partnership.  At
     September 30, 1996, the Partnership was owed $2,920,356 by AFG for such
     funds and the interest thereon.  These funds were remitted to the
     Partnership in October 1996.  The sales proceeds and purchased rents due
     from the Buyer were deposited into an escrow account subsequent to
     September 30, 1996.

     The remarketing effort described in Note 1 was undertaken jointly by 15
     individual equipment leasing programs, consisting of the Partnership and 14
     affiliated partnerships (Other Affected Partnerships).  Collectively, the
     Partnership and the Other Affected Partnerships offered for sale all or a
     portion of their equipment assets.  Thirteen of the programs, including the
     Partnership, sold all of their equipment assets and are expected to wind up
     business operations by December 31, 1996; the remaining two programs, which
     will continue their business operations beyond December 31, 1996, sold only
     their interest in assets owned jointly with one or more of the 13 programs
     anticipating wind-up by December 31, 1996.  Substantially all of the
     Partnership's equipment assets of material value represented partial
     ownership interests whereby the Partnership owned less than a 100% interest
     in the equipment it sold.  The remaining interests in such assets were
     owned by one or more of the Other Affected Partnerships.  Ultimately, the
     Sale Assets were sold for an aggregate adjusted sale price of approximately
     $32,997,000, of which the Partnership's proportionate share, net of
     associated costs, was determined to be $3,419,744.  In a separate
     transaction, the Partnership and certain of the Other Affected Partnerships
     sold their entire interest in the NWA Aircraft to the lessee and agreed to
     terminate the lease agreement for total proceeds of $13,200,000, of which
     the Partnership's proportionate share, net of associated costs, was
     determined to be $2,608,000, including


                                        9

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996

                                   (Continued)



(5)  RELATED PARTY TRANSACTIONS (Continued)

     early termination rents of $325,000.  The Partnership's proportionate share
     in both transactions is net of certain third-party advisory fees incurred
     in connection with the equipment sales.

     The Buyer is a limited partnership established to acquire the Sale Assets,
     excluding the NWA Aircraft, and has no direct affiliation with the
     Partnership, the Other Affected Partnerships, the General Partners or AFG.
     The sole general partner of the Buyer is RSL Holdings, Inc. (RSL).  An
     affiliate of RSL purchased a significant limited partnership interest in a
     direct-participation equipment leasing program co-sponsored by AFG in 1992.
     AFG acquired this interest in 1993 for cash and assumption of indebtedness.
     There have been no other business dealings between the Buyer and AFG and
     their affiliates.

(6)  SUBSEQUENT EVENTS

     In October 1996, the Partnership repaid the entire outstanding balance due
     under the notes payable and the associated interest of $265,287 and $1,506,
     respectively.

     On October 10, 1996, the Managing General Partner entered into a Cross
     Partnership Agreement with general partners of certain other affiliated
     partnerships.  Under this agreement, each of the general partners has
     agreed to set aside a contingency reserve amount for future liabilities and
     deposit that amount into an account that may be accessed by any of the
     general partners to fund any and all obligations contemplated under the
     Cross Partnership Agreement.  Any obligation of the Partnership that is not
     associated with the sales transactions (see Note 1) will directly reduce
     the Partnership's reserve amount.  All costs arising as a result of the
     sales transactions will be allocated against the reserve amount of the
     Partnership and other affiliated partnerships.  If the reserve amount
     contributed by the Partnership is reduced below zero, the reserve amounts
     contributed by the general partners of the other affiliated partnerships
     shall be debited on a pro rata basis to cover the deficit.  If the reserve
     amount contributed by one of the affiliated partnerships is reduced below
     zero, the reserve amounts of the Partnership and the other affiliated
     partnerships shall be debited on a pro rata basis to cover the deficit.
     Upon termination of the contingency reserve account, any monies remaining
     will be distributed to those partnerships with positive balances.  The
     Partnership's reserve amount under this agreement was determined to be
     $775,000 and was deposited in the reserve account in November 1996.


                                       10

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                                    FORM 10-Q

                         PART I.  FINANCIAL INFORMATION



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Three and Nine Months Ended September 30, 1996 Compared To the Three and
Nine Months Ended September 30, 1995:

OVERVIEW

The Partnership was organized in 1989 as a direct-participation equipment
leasing program to acquire a diversified portfolio of capital equipment subject
to lease agreements with third parties.  The Partnership's stated investment
objectives and policies contemplated that the Partnership would wind up its
operations within approximately seven years of its inception.

On September 30, 1996, the Partnership sold all of its remaining equipment
assets.  The remarketing effort described in Note 1 was undertaken jointly by 15
individual equipment leasing programs, consisting of the Partnership and 14
affiliated partnerships (Other Affected Partnerships).  Collectively, the
Partnership and the Other Affected Partnerships offered for sale all or a
portion of their equipment assets (Sale Assets).  Thirteen of the programs,
including the Partnership, sold all of their equipment assets and are expected
to wind up business operations by December 31, 1996; the remaining two programs,
which will continue their business operations beyond December 31, 1996, sold
only their interest in assets owned jointly with one or more of the 13 programs
anticipating wind-up by December 31, 1996.  Substantially all of the
Partnership's equipment assets of material value represented partial ownership
interests whereby the Partnership owned less than a 100% interest in the
equipment it sold.  The remaining interests in such assets were owned by one or
more of the Other Affected Partnerships.  Ultimately, the Sale Assets, excluding
the NWA Aircraft, were sold for an aggregate adjusted sale price of
approximately $32,997,000, of which the Partnership's proportionate share, net
of associated costs, was determined to be $3,419,744.  In a separate
transaction, the Partnership and certain of the Other Affected Partnerships sold
their entire interest in the NWA Aircraft to the lessee and agreed to terminate
the lease agreement for total proceeds of $13,200,000, of which the
Partnership's proportionate share, net of associated costs, was determined to be
$2,608,000, including early termination rents of $325,000.  The Partnership's
proportionate share in both transactions is net of certain third-party advisory
fees incurred in connection with the equipment sales.  In addition, the Buyer
also purchased certain of the Partnership's rents receivable equal to $14,879 at
September 30, 1996.

The Managing General Partner anticipates that the Partnership will be dissolved
on or before December 31, 1996 in accordance with the Partnership's Amended and
Restated Agreement and Certificate of Limited Partnership (Partnership
Agreement).  Prior to December 31, 1996, the Managing General Partner will wind
up the operations of the Partnership and make a liquidating distribution of
$6,571,296 to the Partners.  The distribution approximates the partnership's
available cash, net of estimated wind-up costs and a contingency reserve.  In
November 1996, the contingency reserve of $775,000 was deposited in a separate
account to


                                       11

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                                    FORM 10-Q

                         PART I.  FINANCIAL INFORMATION

                                   (Continued)



OVERVIEW (Continued)

cover any unforeseen liabilities that may arise in future periods.  At such time
as the Managing General Partner considers appropriate, any balance in the
reserve account will be distributed to the Partners according to their
respective ownership interests in the Partnership at the date of its dissolution
(see Note 6 to the financial statements).

The financial statements presented have been prepared on a going-concern basis
through September 30, 1996.  Due to the imminent dissolution of the Partnership
requiring liquidation and distribution of its net assets, management has
determined the liquidating values of amounts receivable based on collectibility
of balances prior to any final distribution and termination of the Partnership.
Accrued liabilities have been estimated based on the existing obligations and
anticipated fees and costs associated with the sales transactions and the wind-
up effort.  Cash distributions to partners, including contingency reserves, will
vary depending upon the realization of the amounts estimated by management.
Values estimated by management may be different from actual amounts.

RESULTS OF OPERATIONS

For the three and nine months ended September 30, 1996, the Partnership
recognized lease revenue of $790,492 and $1,874,442, respectively, compared to
$701,589 and $2,241,342 for the same periods in 1995.  The increase in lease
revenue for the three months ended September 30, 1996 compared to the same
period in 1995 resulted from the recognition of $325,000 in lease revenue
related to early termination rents associated with the sale of the NWA Aircraft.
The overall decrease in lease revenue from 1995 to 1996 was expected and
resulted from primary lease term expirations and the sale of equipment.  The
Partnership also earned interest income from temporary investments of rental
receipts and equipment sales proceeds in short-term instruments.

Prior to the sale of the Partnership's assets, the Partnership's equipment
portfolio included certain assets in which the Partnership held a proportionate
ownership interest.  In such cases, the remaining interests were owned by AFG or
an affiliated equipment leasing program sponsored by AFG.  Proportionate
equipment ownership enabled the Partnership to further diversify its equipment
portfolio by participating in the ownership of selected assets, thereby reducing
the general levels of risk that could result from a concentration in any single
equipment type, industry or lessee.  The Partnership and each affiliate
individually reported, in proportion to their respective ownership interests,
their respective shares of assets, liabilities, revenues and expenses associated
with the equipment.

During the three months ended September 30, 1996, the Partnership sold fully
depreciated equipment in the normal course of business to existing lessees and
third parties.  The sales resulted in a net gain, for financial statement
purposes, of $96,667 compared to net gain in 1995 of $83,725 on equipment having
a net book value of $6,886.


                                       12

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                                    FORM 10-Q

                         PART I.  FINANCIAL INFORMATION

                                   (Continued)



RESULTS OF OPERATIONS (Continued)

During the nine months ended September 30, 1996, the Partnership sold equipment
in the normal course of business having a net book value of $12,781 to existing
lessees and third parties.  These sales resulted in a net gain, for financial
statement purposes, of $245,997 compared to a net gain in 1995 of $455,051 on
equipment having a net book value of $113,435.  In connection with the September
30, 1996 sales transactions discussed above, the Partnership realized a net loss
of $294,261.

Depreciation expense for the three and nine months ended September 30, 1996 was
$95,936 and $399,998, respectively, compared to $234,491 and $721,117 for the
same periods in 1995.  For financial reporting purposes, to the extent that an
asset was held on primary lease term, the Partnership depreciated the difference
between (i) the cost of the asset and (ii) the estimated residual value of the
asset on a straight-line basis over such term.  To the extent that equipment was
held beyond its primary lease term, the Partnership continued to depreciate the
remaining net book value of the asset on a straight-line basis over the asset's
remaining economic life.

Management fees were 5% of lease revenue during each of the periods ended
September 30, 1996 and 1995.

Operating expenses consisted principally of administrative charges, professional
service costs, such as audit and legal fees, as well as printing, distribution
and remarketing expenses.  In certain cases, equipment storage or repairs and
maintenance costs were incurred in connection with equipment being remarketed.
Collectively, operating expenses represented 14.8% and 8.3% of lease revenue for
the three and nine months ended September 30, 1996, respectively, compared to
3.4% and 3.9% of lease revenue for the same periods in 1995.  Operating expenses
for the three and nine month periods ended September 30, 1996 included all costs
anticipated in connection with the Partnership's wind-up and dissolution.

LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS

The Partnership, by its nature, is a limited-life entity that was established
for specific purposes described in the preceding "Overview."  As an equipment
leasing program, the Partnership's principal operating activities have been
derived from asset rental transactions.  Accordingly, the Partnership's
principal source of cash from operations was provided from the collection of
periodic rents.  These cash inflows were used to satisfy debt service
obligations associated with leveraged leases and to pay management fees and
operating costs.  Operating activities generated net cash inflows of $1,759,848
and $2,333,838 for the nine months ended September 30, 1996 and 1995,
respectively.

Cash realized from asset disposal transactions, excluding the sales transactions
on September 30, 1996, is reported under investing activities on the
accompanying Statement of Cash Flows.  During the nine months ended
September 30, 1996, the Partnership realized $258,778 in equipment sale proceeds
during the normal course of business, compared to $568,486 in 1995.


                                       13

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                                    FORM 10-Q

                         PART I.  FINANCIAL INFORMATION

                                   (Continued)



LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS (Continued)

The Partnership obtained long-term financing in connection with certain
equipment leases.  The repayments of principal related to such indebtedness are
reported as a component of financing activities.  All of the Partnership's
outstanding debt obligations were retired in October 1996.

On September 30, 1996, the Partnership recorded a receivable in the amount of
$2,608,000 in connection with the disposal of the NWA Aircraft.  The Partnership
also recorded a receivable of $3,419,744 in connection with the sale of all of
its remaining equipment assets. These proceeds were deposited into an escrow
account and transferred to the Partnership on October 3, 1996.  In conjunction
with this transaction, the Managing General Partner has commenced the
dissolution and liquidation of the Partnership.  The aggregate funds from the
sale transaction and liquidation will be used to fund existing obligations,
including the retirement of outstanding indebtedness, the costs of the wind-up
effort and sales transactions and to establish a contingency reserve to cover
any unforeseen liabilities.  The remaining funds, including any unutilized
contingency reserves, will be distributed to the Partners in accordance with the
terms of the Partnership Agreement and related agreements.


                                       14

<PAGE>

                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP

                                    FORM 10-Q

                           PART II.  OTHER INFORMATION


Item 1.     Legal Proceedings
Response:   None.

Item 2.     Changes in Securities
Response:   None.

Item 3.     Defaults upon Senior Securities
Response:   None.

Item 4.     Submission of Matters to a Vote of Security Holders
Response:   None.

Item 5.     Other Information
Response:   None.

Item 6(a).  Exhibits
Response:   None.

Item 6(b).  Reports on Form 8-K
Response:   None.


                                       15

<PAGE>

                                 SIGNATURE PAGE



Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below on behalf of the registrant and in the capacity and on the
date indicated.



                AMERICAN INCOME PARTNERS IV-C LIMITED PARTNERSHIP


By:  AFG Leasing IV Incorporated, a Massachusetts
corporation and the Managing General Partner of the Registrant.


By: /s/ Michael J. Butterfield
    --------------------------
Michael J. Butterfield
Treasurer of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Accounting Officer)


Date:  November 19, 1996
       -----------------


By: /s/ Gary M. Romano
    --------------------------
Gary M. Romano
Clerk of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Financial Officer)


Date:  November 19, 1996
       -----------------


                                       16