<TABLE>
<S> <C>



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

                                    FORM 10-Q



(Mark One)

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

For the quarterly period ended      September 30,
1995

                                       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, 1995                                                           Commission File No. 0-17522


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

Massachusetts                                                                              04-3018452
(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

</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                                    FORM 10-Q

                                      INDEX



<S>                                                                                                            <C>
                                                                                                               Page

PART I.  FINANCIAL INFORMATION:

     Item 1.  Financial Statements

         Statement of Financial Position
              at September 30, 1995 and December 31, 1994                                                         3

         Statement of Operations
              for the three and nine months ended September 30, 1995 and 1994                                     4

         Statement of Cash Flows
              for the nine months ended September 30, 1995 and 1994                                               5

         Notes to the Financial Statements                                                                      6-9


     Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations                                                             10-13


PART II.  OTHER INFORMATION:

     Items 1 - 6                                                                                                 14

</TABLE>


<PAGE>





                   The accompanying notes are an integral part
                         of these financial statements.

<TABLE>
<CAPTION>
                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                         STATEMENT OF FINANCIAL POSITION
                    September 30, 1995 and December 31, 1994

                                   (Unaudited)



                                                                                    September 30,         December 31,
                                                                                           1995                  1994
ASSETS

<S>                                                                                 <C>                   <C>            
Cash and cash equivalents                                                           $       797,175       $     1,249,320

Rents receivable, net of allowance for doubtful
     accounts of $25,000                                                                     47,460               101,604

Accounts receivable - affiliate                                                             114,843               148,862

Equipment at cost, net of accumulated depreciation of
     $7,830,941 and $8,023,892 at September 30, 1995
     and December 31, 1994, respectively                                                  3,310,812             3,617,859
                                                                                    ---------------       ---------------

         Total assets                                                               $    4,270,290        $    5,117,645
                                                                                    ==============        ==============


LIABILITIES AND PARTNERS' CAPITAL

Notes payable                                                                       $        94,531       $       141,872
Accrued interest                                                                              1,172                 1,678
Accrued liabilities                                                                          16,235                15,500
Accrued liabilities - affiliate                                                                  --                 5,218
Deferred rental income                                                                        9,116                 5,808
Cash distributions payable to partners                                                      237,273               474,545
                                                                                    ---------------       ---------------

         Total liabilities                                                                  358,327               644,621
                                                                                    ---------------       ---------------

Partners' capital (deficit):
     General Partners                                                                      (167,240)             (161,629)
     Limited Partnership Interests
     (939,600 Units; initial purchase price of $25 each)                                  4,079,203             4,634,653
                                                                                    ---------------       ---------------

         Total partners' capital                                                          3,911,963             4,473,024
                                                                                    ---------------       ---------------

         Total liabilities and partners' capital                                    $    4,270,290        $    5,117,645
                                                                                    ==============        ==============



</TABLE>

<PAGE>


<TABLE>
<CAPTION>
                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                             STATEMENT OF OPERATIONS
         for the three and nine months ended September 30, 1995 and 1994

                                   (Unaudited)



                                                          Three Months                                Nine Months
                                                      Ended September 30,                         Ended September 30,
                                                     1995                  1994                  1995                  1994
                                              ------------------    ------------------    -----------------     -----------
Income:

<S>                                           <C>                   <C>                   <C>                   <C>            
     Lease revenue                            $       310,551       $       421,856       $       972,604       $     1,375,318

     Interest income                                   11,263                14,594                38,491                40,879

     Gain on sale of equipment                          1,783                27,110                24,841               283,206
                                              ---------------       ---------------       ---------------       ---------------

         Total income                                 323,597               463,560             1,035,936             1,699,403
                                              ---------------       ---------------       ---------------       ---------------


Expenses:

     Depreciation                                      94,430               174,249               299,912               560,976

     Interest expense                                   2,526                 5,663                 6,598                20,202

     Equipment management fees
         - affiliate                                   15,528                21,093                48,630                68,766

     Operating expenses - affiliate                    11,876                13,919                55,494                47,612
                                              ---------------       ---------------       ---------------       ---------------

         Total expenses                               124,360               214,924               410,634               697,556
                                              ---------------       ---------------       ---------------       ---------------


Net income                                    $        199,237      $       248,636       $       625,302       $    1,001,847
                                              ================      ===============       ===============       ==============


Net income
     per limited partnership unit             $             0.21    $             0.26    $             0.66    $             1.06
                                              ==================    ==================    ==================    ==================

Cash distributions declared
     per limited partnership unit             $             0.25    $             0.50    $             1.25    $             1.50
                                              ==================    ==================    ==================    ==================




</TABLE>

<PAGE>


<TABLE>
<CAPTION>
                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                             STATEMENT OF CASH FLOWS
              for the nine months ended September 30, 1995 and 1994

                                   (Unaudited)


                                                                                          1995                   1994
                                                                                   ------------------     -----------
Cash flows from (used in) operating activities:
<S>                                                                                <C>                    <C>            
Net income                                                                         $       625,302        $     1,001,847

Adjustments to reconcile net income to net cash from operating activities:
         Depreciation                                                                      299,912                560,976
         Gain on sale of equipment                                                         (24,841)              (283,206)
         Decrease in allowance for doubtful accounts                                            --                (25,000)

Changes in assets and liabilities Decrease (increase) in:
         rents receivable                                                                   54,144                (22,944)
         accounts receivable - affiliate                                                    34,019                119,736
     Increase (decrease) in:
         accrued interest                                                                     (506)                  (864)
         accrued liabilities                                                                   735                  4,825
         accrued liabilities - affiliate                                                    (5,218)                10,274
         deferred rental income                                                              3,308                (12,925)
                                                                                   ---------------        ---------------

              Net cash from operating activities                                           986,855              1,352,719
                                                                                   ---------------        ---------------

Cash flows from investing activities:
     Principal payments from direct financing lease                                             --                133,161
     Proceeds from equipment sales                                                          31,976                285,401
                                                                                   ---------------        ---------------

              Net cash from investing activities                                            31,976                418,562
                                                                                   ---------------        ---------------

Cash flows used in financing activities:
     Principal payments - notes payable                                                    (47,341)              (274,015)
     Distributions paid                                                                 (1,423,635)            (1,838,863)
                                                                                   ---------------        ---------------

              Net cash used in financing activities                                     (1,470,976)            (2,112,878)
                                                                                   ---------------        ---------------

Net decrease in cash and cash equivalents                                                 (452,145)              (341,597)

Cash and cash equivalents at beginning of period                                         1,249,320              1,754,226
                                                                                   ---------------        ---------------

Cash and cash equivalents at end of period                                         $       797,175        $    1,412,629
                                                                                   ===============        ==============


Supplemental disclosure of cash flow information:
     Cash paid during the period for interest                                      $           7,104      $         21,066
                                                                                   =================      ================

Supplemental disclosure of non-cash investing and financing activities:
     In 1994,  the  Partnership  capitalized  $137,500  of  refurbishment  costs
     incurred  to upgrade  certain  equipment,  all of which was  financed  by a
     third-party lender.

     In 1994, the  Partnership  entered into a direct  financing lease requiring
     aggregate minimum lease payments of $205,814 in connection with the sale of
     certain equipment.

</TABLE>

<PAGE>





8


                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                        Notes to the Financial Statements
                               September 30, 1995

                                   (Unaudited)



NOTE 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 1994 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1994 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, 1995 and December 31, 1994 and results of  operations
for the three and nine month periods ended September 30, 1995 and 1994 have been
made and are reflected.


NOTE 2 - CASH

     At September 30, 1995,  the  Partnership  had $795,000  invested in reverse
repurchase  agreements  secured  by U.S.  Treasury  Bills or  interests  in U.S.
Government securities.


NOTE 3 - REVENUE RECOGNITION

     Rents are payable to the Partnership  monthly,  quarterly or  semi-annually
and no  significant  amounts are calculated on factors other than the passage of
time. The leases are accounted for as operating  leases and are  noncancellable.
Rents  received  prior to their due dates are deferred.  Future minimum rents of
$2,459,260 are due as follows:

     For the year ending September 30,       1996                   $    940,827
                                             1997                        796,100
                                             1998                        439,611
                                             1999                        282,722
                                                                   -------------

                                            Total                    $ 2,459,260
                                                                     ===========


NOTE 4 - INVESTMENT IN DIRECT FINANCING LEASE

     During  1994,  the  Partnership  entered into a direct  financing  lease in
connection with the remarketing of certain equipment.  The Partnership  received
$205,814  of  aggregate  lease  payments  in  connection  with  the sale of this
equipment  during the year ending  December 31, 1994. No further lease  payments
are due under this lease.  Included in the minimum lease  payments was $4,779 of
interest  income which  represented  the difference  between the aggregate lease
payments  received  by the  Partnership  and the  present  value of those  lease
payments,  calculated  at the  lease's  inception  using  the  rate of  interest
implicit  in the lease or 5.16%.  As payments  were  received,  the  Partnership
recognized  interest  income from the direct  financing lease using the Interest
Method. For financial  statement  purposes,  the Partnership  recorded a gain on
sale of equipment of $201,035  during the nine months ended  September  30, 1994
and  interest  income of $800 and $4,047  during the three and nine months ended
September 30, 1994, respectively.  Ownership of the equipment was transferred to
the lessee in December 1994 upon receipt of the final lease payment.


<PAGE>


<TABLE>
<CAPTION>
                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                        Notes to the Financial Statements

                                   (Continued)



NOTE 5 - EQUIPMENT

     The  following  is a  summary  of  equipment  owned by the  Partnership  at
September  30,  1995.  In the opinion of American  Finance  Group  ("AFG"),  the
carrying value of the equipment does not exceed its fair market value.

                                                             Lease Term                       Equipment
           Equipment Type                                       (Months)                       at Cost

<S>                                                                  <C>                      <C>         
Aircraft                                                             38                       $  3,952,789
Vessels                                                           63-72                          2,364,790
Retail store fixtures                                             12-72                          1,948,204
Manufacturing                                                     12-60                          1,671,169
Materials handling                                                 3-60                            641,469
Tractors and heavy duty trucks                                    12-60                            259,103
Communications                                                    24-60                            258,438
Construction and mining                                           24-72                             16,631
Trailers/intermodal containers                                    11-72                             15,642
Photocopying                                                      12-60                             13,518
                                                                                           ---------------

                                                   Total equipment cost                         11,141,753

                                               Accumulated depreciation                         (7,830,941)

                             Equipment, net of accumulated depreciation                       $  3,310,812
                                                                                              ============

</TABLE>

     At September  30, 1995,  the  Partnership's  equipment  portfolio  included
equipment  having a  proportionate  original  cost of  $8,458,031,  representing
approximately 76% of total equipment cost.

     The summary  above  includes  equipment  held for  re-lease or sale with an
original   cost  and  net  book  value  of   approximately   $76,000  and  $500,
respectively, at September 30, 1995.


<TABLE>
<CAPTION>
NOTE 6 - RELATED PARTY TRANSACTIONS

     All  operating  expenses  incurred  by the  Partnership  are paid by 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, 1995 and 1994,  which were paid or accrued by the
Partnership to AFG or its Affiliates, are as follows:

                                                             1995                  1994
                                                       ----------------       ---------

<S>                                                      <C>                    <C>          
     Equipment management fees                           $       48,630         $      68,766
     Administrative charges                                      15,750                 9,000
     Reimbursable operating expenses
         due to third parties                                    39,744                38,612
                                                        ---------------        --------------

                                     Total                $     104,124          $    116,378
                                                          =============          ============


</TABLE>

<PAGE>


                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                        Notes to the Financial Statements

                                   (Continued)



     All rents and  proceeds  from the sale of  equipment  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, 1995, the  Partnership  was owed $114,843 by AFG for such funds
and the  interest  thereon.  These  funds were  remitted to the  Partnership  in
October 1995.

     On August 18, 1995, Atlantic  Acquisition Limited Partnership  ("AALP"),  a
newly formed  Massachusetts  limited partnership owned and controlled by certain
principals of AFG,  issued a voluntary  Offer to Purchase for Cash (the "Offer")
up to approximately  45% of the outstanding units of limited partner interest in
this  Partnership and 20 affiliated  partnerships  sponsored and managed by AFG.
Coincident to the Offer, a Tender Offer Statement  pursuant to Section  14(d)(1)
of the Securities  Exchange Act of 1934 (the "Exchange  Act") was filed with the
Securities  and  Exchange  Commission.  Also,  on August 18,  1995,  the General
Partner filed a Solicitation/ Recommendation Statement (Schedule 14D-9) pursuant
to Section  14(d)(4) of the Exchange Act. The Offer was amended and supplemented
in order to provide  additional  disclosure to  unitholders;  increase the offer
price; reduce the number of units sought to approximately 35% of the outstanding
units; and extend the expiration date of the Offer to October 20, 1995.  Certain
legal actions were initiated by interested  persons against AALP and each of the
general  partners (4 in total) of the 21 affected  programs,  and various  other
affiliates  and related  parties.  One action,  representing  a class  action on
behalf of the  unitholders  (limited  partners),  sought to enjoin the Offer and
obtain  unspecified  monetary  damages.  A  settlement  of this  litigation  was
proposed and was preliminarily  approved by the United States District Court for
the  District of  Massachusetts  (the  "Court") on  September  27, 1995. A final
settlement  hearing is scheduled  on November  15, 1995. A second class  action,
brought in the Superior Court of the  Commonwealth  of  Massachusetts,  seeks to
enjoin the Offer,  obtain  unspecified  monetary  damages,  and intervene in the
first  class  action.  The  plaintiffs  have filed  objections  to the  proposed
settlement of the first action.  At this date,  these  objections  have not been
acted upon by the Superior Court. As of the Offer  expiration  date, the limited
partners of the Partnership had tendered  approximately 78,047 Units or 8.31% of
the total  outstanding  Units of the  Partnership to AALP.  Notwithstanding  the
foregoing,  the operations of the  Partnership  are not expected to be adversely
affected by the proceedings or proposed settlements.


NOTE 7 - NOTES PAYABLE

     Notes payable at September  30, 1995  consisted of an  installment  note of
$94,531 payable to an institutional  lender.  This note is non-recourse,  with a
fluctuating  interest rate based on the London Inter-Bank Offered Rate ("LIBOR")
plus 1.5%. At September 30, 1995,  the applicable  LIBOR rate was  approximately
7.38%. The note is collateralized by the equipment and assignment of the related
lease payments and will be fully amortized by noncancellable rents.

     The annual maturities of the installment note is as follows:

     For the year ending September 30,       1996           $    34,375
                                             1997                34,375
                                             1998                25,781
                                                           ------------

                                            Total           $    94,531
                                                            ===========


NOTE 8 - LEGAL PROCEEDINGS

         On September 7, 1993, Rose's Stores, Inc. (the "Debtor"), a lessee of 
the Partnership,  filed for protection under Chapter 11 of the Bankruptcy Code.
AFG, on behalf of the Partnership and various other AFG-sponsored


                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                        Notes to the Financial Statements

                                   (Continued)



investment  programs,  filed a proof of  claim in this  case,  which  claim  was
amended and restated.  In August 1994, the Bankruptcy Court approved a Motion to
Reject  Certain  Executory  Equipment  Leases  filed by the Debtor  relating  to
approximately  $413,000 of equipment owned by this Partnership.  The Partnership
sold all  such  equipment  during  1994  and  recognized  a net gain of $453 for
financial  statement  purposes.  During 1995, the Partnership sold an additional
$1,949 of equipment previously leased to the Debtor and recognized a net gain of
$280 for financial  statement  purposes.  At September 30, 1995, the Partnership
owned other equipment,  having an original cost of $855,168, which was leased to
the Debtor.  This equipment  represents  approximately  8% of the  Partnership's
aggregate  equipment  portfolio and is fully depreciated for financial statement
purposes.  All of this  equipment  is being  leased  pursuant to renewal  rental
schedules executed by the Debtor.

         The Debtor's First Amended Joint Plan of  Reorganization  (the "Plan of
Reorganization")  was adopted on December 14,  1994.  On June 8, 1995 and August
18, 1995,  AFG, on behalf of the  Partnership  and various  other  AFG-sponsored
investment programs, was issued 17,023 shares and 7,296 shares, respectively, of
the Debtor's  common stock  pursuant to the Plan of  Reorganization.  The common
stock,  no par value  stock,  which had a market value of $2.38 and $2.56 at the
respective  settlement dates, was issued in full satisfaction of the outstanding
unsecured  claims  of  the  affected  investment  programs.   The  Partnership's
proportionate  interest  in this  settlement  is 10.61% or  approximately  2,580
shares.  This bankruptcy did not have a material adverse effect on the financial
position of the Partnership.


<PAGE>


                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION



Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations.

Three and nine months ended  September  30, 1995  compared to the three and nine
months ended September 30, 1994:

Overview

     As an equipment  leasing  partnership,  the  Partnership  was  organized to
acquire a diversified portfolio of capital equipment subject to lease agreements
with third  parties.  The  Partnership  was designed to progress  through  three
principal  phases:  acquisitions,   operations,  and  liquidation.   During  the
operations  phase,  a period of  approximately  six years,  all equipment in the
Partnership's  portfolio will progress  through various stages.  Initially,  all
equipment will generate  rental  revenues  under primary term lease  agreements.
During  the  life  of  the  Partnership,  these  agreements  will  expire  on an
intermittent  basis and equipment  held  pursuant to the related  leases will be
renewed,  re-leased or sold,  depending on prevailing  market conditions and the
assessment of such  conditions by AFG to obtain the most  advantageous  economic
benefit.  Over time, a greater portion of the Partnership's  original  equipment
portfolio  will  become  available  for  remarketing  and  cash  generated  from
operations and from sales or refinancings  will begin to fluctuate.  Ultimately,
all  equipment  will  be  sold  and  the  Partnership  will  be  dissolved.  The
Partnership's operations commenced in 1988.


Results of Operations

     For the three and nine months ended  September  30, 1995,  the  Partnership
recognized  lease  revenue of $310,551  and $972,604  respectively,  compared to
$421,856  and  $1,375,318  for the same  periods in 1994.  The decrease in lease
revenue from 1994 to 1995 was expected  and  resulted  principally  from primary
lease term expirations and the sale of equipment.

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

     At June 30,  1994,  the Managing  General  Partner  reviewed the  aggregate
amount reserved against potentially uncollectable rents and determined a reserve
of $25,000  would be  appropriate.  Accordingly,  the  Partnership  reduced  its
reserve and  increased  lease  revenue in the amount of $25,000  during the nine
months ended September 30, 1994. It cannot be determined whether the Partnership
will recover any past due rents in the future;  however,  the  Managing  General
Partner will pursue the collection of all such items.

     Interest  income for the three and nine months ended September 30, 1995 was
$11,263 and $38,491, respectively,  compared to $14,594 and $40,879 for the same
periods in 1994.  Interest  income is generated  from  temporary  investment  of
rental receipts and equipment sale proceeds in short-term instruments.  In 1994,
interest income included  interest from the  Partnership's  interest in a direct
financing lease (see discussion  below). The amount of future interest income is
expected  to  fluctuate  in  relation  to  prevailing  interest  rates  and  the
collection of lease revenue and equipment sales proceeds.


<PAGE>



                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP


                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION




     For the three  months  ended  September  30,  1995,  the  Partnership  sold
equipment that had been fully depreciated to existing lessees and third parties.
These sales resulted in a net gain, for financial statement purposes,  of $1,783
compared  to a net gain of  $27,110  on  equipment  having  a net book  value of
$55,314 for the same period in 1994.

     For the  nine  months  ended  September  30,  1995,  the  Partnership  sold
equipment  having a net book  value of  $7,135  to  existing  lessees  and third
parties.  These sales resulted in a net gain, for financial  statement purposes,
of $24,841  compared  to a net gain of $82,171  on  equipment  having a net book
value of $203,230 for the same period in 1994.

     During  1994,  the  Partnership  entered into a direct  financing  lease in
connection  with the remarketing of certain  equipment (See Note 4 herein).  For
financial  statement  purposes,  the  Partnership  recorded  a gain  on  sale of
equipment  of  $201,035  during the nine  months  ended  September  30, 1994 and
interest  income of $800 and  $4,047  during  the three  and nine  months  ended
September 30, 1994,  respectively.  Interest  income  represented the difference
between the aggregate lease payments received by the Partnership and the present
value of those lease  payments,  calculated at the lease's  inception  using the
rate of interest implicit in the lease or 5.16%.

     It cannot be determined  whether future sales of equipment will result in a
net  gain  or a net  loss  to the  Partnership,  as  such  transactions  will be
dependent  upon  the  condition  and  type  of  equipment  being  sold  and  its
marketability  at the time of sale.  In  addition,  the  amount  of gain or loss
reported for financial  statement purposes is partly a function of the amount of
accumulated depreciation associated with the equipment being sold.

     The  ultimate  realization  of residual  value for any type of equipment is
dependent  upon many  factors,  including  AFG's  ability  to sell and  re-lease
equipment. Changing market conditions,  industry trends, technological advances,
and many other  events can  converge to enhance or detract  from asset values at
any given  time.  AFG  attempts  to monitor  these  changes in order to identify
opportunities  which may be  advantageous  to the  Partnership  and  which  will
maximize total cash returns for each asset.

     The total economic  value realized upon final  disposition of each asset is
comprised of all primary lease term revenues generated from that asset, together
with its residual value. The latter consists of cash proceeds  realized upon the
asset's sale in addition to all other cash  receipts  obtained  from renting the
asset on a re-lease, renewal or month-to-month basis. The Partnership classifies
such residual rental payments as lease revenue. Consequently, the amount of gain
or loss reported in the financial  statements is not  necessarily  indicative of
the total residual value the Partnership achieved from leasing the equipment.

     Depreciation expense for the three and nine months ended September 30, 1995
was $94,430 and  $299,912,  respectively,  compared to $174,249 and $560,976 for
the same periods in 1994. For financial reporting  purposes,  to the extent that
an  asset  is held on  primary  lease  term,  the  Partnership  depreciates  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. For purposes of this
policy, estimated residual values represent estimates of equipment values at the
date of primary lease  expiration.  To the extent that  equipment is held beyond
its primary lease term,  the  Partnership  continues to depreciate the remaining
net book value of the asset on a straight-line  basis over the asset's remaining
economic life.

     Interest  expense was $2,526 and $6,598,  or less than 1% of lease  revenue
for  each of the  three  and  nine  month  periods  ended  September  30,  1995,
respectively,  compared to $5,663 and $20,202 or 1.3% and 1.5% of lease  revenue
for the same periods in 1994.  Interest  expense in future periods will continue
to decline  in amount  and as a  percentage  of lease  revenue as the  principal
balance of notes payable is reduced  through the application of rent receipts to
outstanding debt.

     Management  fees were 5% of lease revenue  during each of the periods  
ended  September 30, 1995 and 1994 and will not change as a percentage of lease
revenue in future periods.

     Operating   expenses  consist   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 may be incurred in connection with equipment being
remarketed.  Collectively, operating expenses represented 3.8% and 5.7% of lease
revenue for the three and nine months ended  September  30, 1995,  respectively,
compared  to 3.3% and 3.5% of lease  revenue for the same  periods in 1994.  The
increase  in  operating  expenses  from  1994 to 1995  was  primarily  due to an
increase in professional  service costs. The amount of future operating expenses
cannot be predicted with  certainty;  however,  such expenses are usually higher
during  the  acquisition  and  liquidation   phases  of  a  partnership.   Other
fluctuations typically occur in relation to the volume and timing of remarketing
activities.


Liquidity and Capital Resources and Discussion of Cash Flows

     The  Partnership  by  its  nature  is  a  limited  life  entity  which  was
established for specific purposes described in the preceding  "Overview".  As an
equipment leasing program,  the  Partnership's  principal  operating  activities
derive from asset rental transactions.  Accordingly, the Partnership's principal
source of cash from  operations is provided by the collection of periodic rents.
These cash inflows are 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 $986,855 and  $1,352,719  in 1995 and
1994, respectively.  Future renewal, re-lease and equipment sale activities will
cause a gradual decline in the  Partnership's  lease revenues and  corresponding
sources of operating cash. Overall,  expenses associated with rental activities,
such as  management  fees,  and net cash flow  from  operating  activities  will
decline as the Partnership experiences a higher frequency of remarketing events.

     Ultimately,  the Partnership  will dispose of all assets under lease.  This
will occur principally through sale transactions whereby each asset will be sold
to the  existing  lessee or to a third  party.  Generally,  this will occur upon
expiration  of  each  asset's  primary  or  renewal/re-lease  term.  In  certain
instances, casualty or early termination events may result in the disposal of an
asset. Such circumstances are infrequent and usually result in the collection of
stipulated cash  settlements  pursuant to terms and conditions  contained in the
underlying lease agreements.

     Cash realized from asset disposal  transactions is reported under investing
activities on the accompanying  Statement of Cash Flows.  During the nine months
ended  September 30, 1995, the  Partnership  realized  $31,976 in equipment sale
proceeds  compared  to  $285,401  for the same  period in 1994.  During the nine
months ended September 30,1994, the Partnership also received principal payments
of $133,161 from a direct financing lease,  discussed in Note 4 to the financial
statements.  Future inflows of cash from asset disposals will vary in timing and
amount and will be influenced by many factors including, but not limited to, the
frequency and timing of lease expirations, the type of equipment being sold, its
condition and age, and future market conditions.

     During 1994, the Partnership  capitalized  $137,500 of refurbishment  costs
incurred to upgrade a cargo vessel leased by Kristian Gerhard Jebsen Skipsrederi
A/S ("KGJS") pursuant to the terms of an extended and renegotiated contract with
KGJS. The refurbishment costs were financed with a third-party lender and shared
between the Partnership and other affiliated partnerships in proportion to their
respective ownership interests in the vessel.

     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.  Each note payable is recourse
only to the  specific  equipment  financed  and to the minimum  rental  payments
contracted  to be received  during the debt  amortization  period  (which period
generally  coincides  with the  lease  rental  term).  As  rental  payments  are
collected,  a  portion  or all of the  rental  payment  is  used  to  repay  the
associated indebtedness.  In future years, the amount of cash used to repay debt
obligations  will continue to decline as the principal  balance of notes payable
is reduced through the collection and application of rents.
     Cash  distributions  to the  General  Partners  and  Recognized  Owners are
declared  and  generally  paid within  fifteen  days  following  the end of each
calendar quarter.  The payment of such distributions is presented as a component
of financing  activities.  For the nine months  ended  September  30, 1995,  the
Partnership  declared  total  cash  distributions  of  Distributable  Cash  From
Operations and Distributable Cash From Sales and Refinancings of $1,186,363.  In
accordance  with the Amended and Restated  Agreement and  Certificate of Limited
Partnership, the Recognized Owners were allocated 99% of these distributions, or
$1,174,499,  and the General  Partners were allocated 1%, or $11,864.  The third
quarter 1995 cash distribution was paid on October 13, 1995.

     Cash  distributions  paid to the Recognized Owners consist of both a return
of and a return on  capital.  To the extent that cash  distributions  consist of
Cash From Sales or Refinancings,  substantially  all of such cash  distributions
should be viewed as a return of capital. Cash distributions do not represent and
are not indicative of yield on investment.  Actual yield on investment cannot be
determined  with any certainty  until  conclusion of the Partnership and will be
dependent upon the collection of all future  contracted rents, the generation of
renewal and/or re-lease rents, and the residual value realized for each asset at
its disposal date. Future market conditions,  technological changes, the ability
of  AFG  to  manage  and  remarket  the  assets,   and  many  other  events  and
circumstances,  could  enhance or detract from  individual  asset yields and the
collective performance of the Partnership's equipment portfolio.

     The Partnership's  future cash  distributions will be adversely affected by
the bankruptcy of Midway Airlines, Inc. ("Midway"). In November, 1991, Midway, a
lessee of the  Partnership,  filed for bankruptcy  protection under Chapter 7 of
the Bankruptcy Code. The Partnership's interest in a DC-9 aircraft was sold at a
public  sale  by  the  third-party   lending   institution  which  financed  the
Partnership's  acquisition  of the aircraft and which  applied all sale proceeds
against the outstanding loan balance.  Although this bankruptcy had no immediate
adverse effect on the  Partnership's  cash flow, as the  Partnership  had almost
fully leveraged its ownership  interest in the underlying  aircraft,  this event
resulted in the Partnership's  loss of any future interest in the residual value
of the  aircraft.  It is  expected  that this  bankruptcy  will have a  material
adverse  effect  on  the  ability  of  the  Partnership  to  achieve  all of its
originally intended economic benefits.  However, the final yield on capital will
be dependent upon the collective  performance  results of all the  Partnership's
equipment leases.

     The future liquidity of the Partnership will be influenced by the foregoing
and will be greatly  dependent upon the collection of contractual  rents and the
outcome of residual  activities.  The Managing General Partner  anticipates that
cash proceeds resulting from these sources will satisfy the Partnership's future
expense  obligations.  However, the amount of cash available for distribution in
future periods will fluctuate.  Equipment lease  expirations and asset disposals
will cause the Partnership's net cash from operating activities to diminish over
time; and equipment sale proceeds will vary in amount and period of realization.
Accordingly,  fluctuations  in the level of quarterly  cash  distributions  will
occur during the life of the Partnership.


<PAGE>





                AMERICAN INCOME PARTNERS IV-A LIMITED PARTNERSHIP

                                    FORM 10-Q

                           PART II. OTHER INFORMATION



         Item 1.                            Legal Proceedings
                                            Response:

                                            Refer to Note 8 herein and to Note 8
                                            in the 1994 Annual Report.

         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




<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-A LIMITED PARTNERSHIP


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


                               By:
                                        Gary M. Romano
                                        Vice President and Controller
                                        (Duly Authorized Officer and
                                        Principal Accounting Officer)


                               Date:





<PAGE>



15


                                 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-A LIMITED PARTNERSHIP


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


                               By:      /s/ Gary M. Romano
                                        Gary M. Romano
                                        Vice President and Controller
                                        (Duly Authorized Officer and
                                        Principal Accounting Officer)


                               Date:    November 13, 1995