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

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

                                    FORM 10-Q
                   Quarterly Report Under Section 13 or 15(d)
              of the United States Securities Exchange Act of 1934

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


Quarter Ended September 30, 1997                    Commission File No. 33-18859


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


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


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


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

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


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

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

                                  Yes X No ___

                             There are no Exhibits.

                                  Page 1 of 14

<PAGE>

<TABLE>
<CAPTION>

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


                                   INDEX                                                                           Page No.


<S>           <C>                                                                                                  <C>
Part I.       FINANCIAL INFORMATION

              Financial Statements

                    Balance Sheets as of September 30, 1997 and December 31, 1996                                  3

                    Statements of Operations
                          Quarters Ended September 30, 1997 and 1996 and
                          Nine Months Ended September 30, 1997 and 1996                                            4

                    Statements of Cash Flows
                          Nine Months Ended September 30, 1997 and 1996                                            5

                    Notes to Financial Statements                                                                  6 - 8

              Management's Discussion and Analysis of Financial Condition
                    and Results of Operations                                                                      9 - 11

              Computer Equipment Portfolio                                                                         12

Part II.      OTHER INFORMATION

              Items 1 - 6                                                                                          13

              Signature                                                                                            14

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

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

                                 Balance Sheets

                                     Assets                                         (Unaudited)              (Audited)
                                                                                      9/30/97                 12/31/96
                                                                                 ----------------        ----------------

<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      3,331,637        $      5,084,339
     Less accumulated depreciation                                                      2,591,455               3,807,667
                                                                                 ----------------        ----------------
       Investment property, net                                                           740,182               1,276,672

Cash and cash equivalents                                                                 215,198                  36,022
Rents receivable, net (note 2)                                                             15,590                  64,103
Sales receivable, net (note 2)                                                                800                   6,425
Accounts receivable - affiliates                                                           27,988                       -
Marketable securities (note 6)                                                                  -                     600
Other assets                                                                               41,267                   1,214
                                                                                 ----------------        ----------------

     Total assets                                                                $      1,041,025        $      1,385,036
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                    $        258,902        $        437,438
   Accounts payable and accrued expenses - affiliates (note 4)                             15,068                  28,097
   Accounts payable and accrued expenses                                                   51,076                 144,138
   Unearned rental revenue                                                                  5,135                  29,795
   Long-term debt, less current portion (note 5)                                           89,899                 153,736
                                                                                 ----------------        ----------------

     Total liabilities                                                                    420,080                 793,204
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                628,127                 610,700
     Cumulative cash distributions                                                       (623,188)               (611,699)
     Unrealized losses on marketable securities (note 6)                                        -                      (1)
                                                                                 ----------------        ----------------
                                                                                            5,939                       -
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net income                                                                481,840                  84,457
     Cumulative cash distributions                                                    (12,015,293)            (11,640,935)
     Unrealized losses on marketable securities (note 6)                                        -                    (149)
                                                                                 ----------------        ----------------
                                                                                          615,006                 591,832
                                                                                 ----------------        ----------------
     Total partners' equity                                                               620,945                 591,832
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $      1,041,025        $      1,385,036
                                                                                 ================        ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Operations
                                   (Unaudited)

                                                     Quarters Ended                         Nine Months Ended
                                                      September 30,                           September 30,
                                           --------------------------------       ----------------------------------
                                                 1997              1996                1997                1996
                                           --------------------------------       ----------------------------------

<S>                                        <C>               <C>                  <C>                <C>            
Revenue:
   Rental income                           $     228,436     $      384,183       $      833,123     $     1,217,046
   Other income                                   14,123                  -               51,800                   -
   Interest income                                 3,233                957                6,885               3,712
   Net gain (loss) on sale
     of equipment                                (18,666)               464               82,964               3,685
   Net loss on sale of
     marketable securities                             -                  -                 (117)                  -
                                           -------------     --------------       --------------     ---------------

       Total revenue                             227,126            385,604              974,655           1,224,443
                                           -------------     --------------       --------------     ---------------

Costs and expenses:
   Depreciation                                   50,408             71,238              400,027             755,684
   Interest                                        8,488             19,510               29,920              65,713
   Related party expenses (note 4):
     Management fees                              16,286             27,620               52,188              92,577
     General and administrative                   32,763             37,258              114,439             114,236
   (Reversal of) provision for
     doubtful accounts                           (16,612)            16,874              (36,729)             23,068
                                           -------------     --------------       --------------     ---------------

       Total costs and expenses                   91,333            172,500              559,845           1,051,278
                                           -------------     --------------       --------------     ---------------

Net income                                 $     135,793     $      213,104       $      414,810     $       173,165
                                           =============     ==============       ==============     ===============

Net income (loss) per Limited
   Partnership Unit                        $        4.72     $         3.21       $        14.60     $         (7.38)
                                           =============     ==============       ==============     ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Cash Flows
                  Nine Months Ended September 30, 1997 and 1996
                                   (Unaudited)

                                                                                           1997                     1996
                                                                                           ----                     ----

<S>                                                                                  <C>                      <C>            
Cash flows from operating activities:
   Net income                                                                        $      414,810           $       173,165
                                                                                     --------------           ---------------

   Adjustments  to  reconcile  net  income  to net cash  provided
     by  operating activities:
       Depreciation                                                                         400,027                   755,684
       (Reversal of) provision for doubtful accounts                                        (36,729)                   23,068
       Net gain on sale of equipment                                                        (82,964)                   (3,685)
       Net loss on sale of marketable securities                                                117                         -
       Net decrease in current assets                                                        22,826                    47,635
       Net decrease in current liabilities                                                 (130,751)                 (478,587)
                                                                                     --------------           ---------------

         Total adjustments                                                                  172,526                   344,115
                                                                                     --------------           ---------------

         Net cash provided by operating activities                                          587,336                   517,280
                                                                                     --------------           ---------------

Cash flows from investing activities:
   Purchase of investment property                                                                -                  (506,622)
   Proceeds from sale of marketable securities                                                  633                         -
   Proceeds from sale of investment property                                                219,427                   130,772
                                                                                     --------------           ---------------

         Net cash provided by (used in) investing activities                                220,060                  (375,850)
                                                                                     --------------           ---------------

Cash flows from financing activities:
   Proceeds from borrowing on notes payable                                                       -                   223,600
   Principal payments on notes payable                                                            -                  (100,000)
   Proceeds from borrowing on long-term debt                                                230,336                   189,942
   Principal payments on long-term debt                                                    (472,709)                 (413,799)
   Cash distributions to partners                                                          (385,847)                 (358,236)
                                                                                     --------------           ---------------

         Net cash used in financing activities                                             (628,220)                 (458,493)
                                                                                     --------------           ---------------

Net increase (decrease) in cash and cash equivalents                                        179,176                  (317,063)

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

Cash and cash equivalents at end of period                                           $      215,198           $        19,297
                                                                                     ==============           ===============

Supplemental cash flow information:
   Interest paid during the period                                                   $       29,920           $        59,461
                                                                                     ==============           ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


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

                          Notes to Financial Statements
           Nine Months Ended September 30, 1997 and September 30, 1996
                                   (Unaudited)

(1)   Organization and Partnership Matters

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

(2)   Significant Accounting Policies

Allowance for Doubtful Accounts

The financial  statements  include allowances for estimated losses on receivable
balances.  The  allowances  for  doubtful  accounts  are based on past write off
experience  and an evaluation  of potential  uncollectible  accounts  within the
current  receivable  balances.  Receivable  balances  which are determined to be
uncollectible  are charged against the allowance and subsequent  recoveries,  if
any, are credited to the allowance. At September 30, 1997 and December 31, 1996,
the allowance for doubtful accounts included in rents receivable was $26,134 and
$51,763,  respectively.  The allowance for doubtful  accounts  included in sales
receivable  was $0 and $11,100 at  September  30, 1997 and  December  31,  1996,
respectively.

Reclassifications

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

(3)   Investment Property

At  September  30,  1997,  the  Partnership  owned  computer  equipment  with  a
depreciated  cost basis of $724,817,  subject to existing  leases and  equipment
with a  depreciated  cost basis of $15,365 in  inventory,  awaiting  re-lease or
sale. All purchases of computer  equipment are subject to a 3%  acquisition  fee
paid to the General Partner.



<PAGE>


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

                          Notes to Financial Statements
           Nine Months Ended September 30, 1997 and September 30, 1996
                                   (Unaudited)

(4)   Related Party Transactions

Fees,  commissions  and other expenses paid or accrued by the Partnership to the
General  Partner or affiliates of the General  Partner for the nine months ended
September 30 are as follows:

                                                1997              1996
                                                ----              ----

Equipment acquisition fees                 $          -       $     14,756
Management fees                                  52,188             92,577
Reimbursable expenses paid                      108,829            105,609
                                           ------------       ------------

                                           $    161,017       $    212,942
                                           ============       ============

Under the terms of the Partnership Agreement, the General Partner is entitled to
an equipment acquisition fee of 3% of the purchase price paid by the Partnership
for the  equipment.  The General  Partner is also  entitled to a management  fee
equal  to 7% of the  monthly  rental  billings.  In  addition,  the  Partnership
reimburses the General Partner and its affiliates for certain expenses  incurred
by them in connection with the operation of the Partnership.

 (5)  Long-term Debt

Long-term  debt at  September  30, 1997  consists  of one loan for $62,784  from
Pullman  Capital  Corporation  with an interest at 8.00% and four loans totaling
$286,017  from  Liberty  Bank,  one  bearing  interest  at 9.00%  and the  three
remaining loans bearing interest at 8.25%. The total outstanding debt balance is
collateralized by equipment with a net book value of $527,599, and assignment of
the related leases.

Maturities of long-term debt are as follows:

                                    1997             $      72,421
                                    1998                   210,271
                                    1999                    66,109
                                                     -------------

                                                     $     348,801
                                                     =============


<PAGE>


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

                          Notes to Financial Statements
           Nine Months Ended September 30, 1997 and September 30, 1996
                                   (Unaudited)

(6)   Fair Values of Financial Instruments

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

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

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

                                                                       Cost             Fair        Cost               Fair
                                                                       Basis            Value       Basis              Value


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



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

Results of Operations

The following discussion relates to the Partnership's operations for the quarter
and nine months ended September 30, 1997 compared to the same periods in 1996.

The  Partnership  realized  net income of $135,793 and $213,104 for the quarters
ended  September 30, 1997 and 1996,  respectively.  Rental  income  decreased by
$155,747 or 41% between the three month  periods.  The decrease is primarily due
to lower rental rates generated on equipment lease  extensions and  remarketings
resulting after the initial lease term expires and due to a decrease in the size
of the  equipment  portfolio.  Other  income is the result of the  reduction  of
overstated  liabilities recorded in prior periods.  Interest income increased as
result of higher average short-term  investment balances held during the current
quarter.  The net loss on sale of equipment in the current  quarter is primarily
due to sales of equipment carrying high net book values.

Total  costs and  expenses  decreased  $81,167 or 47%  between  the three  month
periods.  The  decrease  in costs and  expenses  is mainly due to the decline in
depreciation expense during the current quarter in comparison to the same period
in 1996. The decrease in  depreciation  expense is due to a large portion of the
equipment  portfolio  becoming fully depreciated and due to an overall reduction
in  the  equipment   portfolio.   Interest  expense  decreased  $11,022  as  the
Partnership continued paydown the principle on long-term debt during the current
quarter.  Management  fees decreased in  correlation  with the decline in rental
income. General and administrative expenses remained relatively flat between the
three month periods. The $16,612 reversal of the provision for doubtful accounts
in the current quarter is due to the successful collection efforts on delinquent
accounts.

The Partnership  realized net income of $414,810 and $173,165 for the nine month
periods ended September 30, 1997 and 1996, respectively. Rental income decreased
$383,923 or 32%. As discussed  in the quarter  analysis  above,  the decrease in
rental  income is primarily  due to lower  rental  rates  generated on equipment
lease  extensions  and  remarketings  and  due to a  reduction  in  the  overall
equipment  portfolio.  Other income is the result of the reduction of overstated
liabilities  recorded in prior periods.  Interest income  increased  between the
nine month periods as a result of higher average short-term balances held during
the current nine month period.  The $82,964 net gain on sale of equipment is the
result of sales of equipment  carrying low net book values. The net loss on sale
of marketable  securities in 1997 reflects the  below-cost  sale of  Continental
Information  Systems  Corporation  stock.  The stock had been  received from the
Trustee of the Liquidating Estate of CIS Corporation (the "Estate"),  the former
ultimate  parent  company of the General  Partner,  as part of the settlement of
certain outstanding issues between the Partnership and the Estate.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

Total  costs and  expenses  decreased  $491,433  or 47%  between  the nine month
periods. The decrease in costs and expenses is mainly due to the $355,657 or 47%
decline in depreciation expense. As discussed in the quarter analysis above, the
decrease  in  depreciation  expense is due to a large  portion of the  equipment
portfolio  becoming fully  depreciated  and due to the overall  reduction in the
equipment  portfolio.  Interest  expense  decrease  $35,793  as the  Partnership
continued to paydown the principle on its  long-term  debt during the nine month
period ended  September 30, 1997.  Management  fees  decreased  between the nine
month periods due to the decline in rental  income.  General and  administrative
expenses  remained  relatively flat between the nine month periods.  The $36,729
reversal of the  provision  for  doubtful  accounts is the result of  successful
collection efforts on delinquent accounts in 1997.


The Partnership  recorded net income per Limited  Partnership  Unit of $4.72 and
$3.21 for the quarters ended September 30, 1997 and 1996, respectively,  and net
income of $14.60 and a net loss of $7.38 for the nine months ended September 30,
1997 and 1996, respectively.  The allocation for the nine months ended September
30,  1996  includes  a cost  recovery  allocation  of profit  and loss among the
General and  Limited  Partners.  This cost  recovery  allocation  is required to
maintain  capital accounts  consistent with the  distribution  provisions of the
Partnership Agreement.  In certain periods, the cost recovery of profit and loss
may result in an  allocation  of net loss to the Limited  Partners in  instances
when the Partnership's operations were profitable for the period.

Liquidity and Capital Resources

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

Rental income has continued to decrease due to two factors.  First,  lower rates
are obtained on the  remarketing of existing  equipment  upon  expiration of the
original leases. Typically the remarketed rates are lower due to the decrease in
useful life of the equipment. Second, the increasing change of technology in the
computer  industry  usually  decreases  the  demand  for older  equipment,  thus
increasing the possibility of obsolescence.  Both of these factors together will
cause  remarketed  rates to be lower than original  rates and will cause certain
leases to terminate upon expiration.  This decrease  however,  should not affect
the Partnership's  ability to meet its future cash  requirements,  including its
long-term  debt  obligations.  To the extent that  future  cash flows  should be
insufficient  to meet the  Partnership's  operating  expenses  and  liabilities,
additional funds could be obtained  through the sale of equipment,  or through a
reduction in the rate of cash  distributions.  Future rental  revenues amount to
$944,455 and are to be received over the next five years.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

The  Partnership's  investing  activities  resulted in sales of equipment with a
depreciated cost basis of $31,113,  generating $219,427 in proceeds. Included in
equipment  sales is a  $167,576  loss which was  charged  against  the  reserve,
initially  set up in a prior  period  to  account  for  estimated  losses on the
ultimate  disposition of equipment.  The Partnership will not purchase equipment
in the future as the Partnership has reached the end of its reinvestment period.

The Partnership's  financing  activities  resulted in proceeds from borrowing on
long-term debt of $230,336. The Partnership's activities also included a paydown
on  long-term  debt of  $472,709 . The  Partnership  will  payoff its  remaining
long-term debt of $348,801 by 1999.  Total debt assumed by the Partnership  from
inception is $14,500,441, for a total leverage of 43%.

Cash  distributions  are  currently  at  an  annual  level  of  5%  per  Limited
Partnership Unit or $6.25 per Limited Partnership Unit on a quarterly basis. For
the  quarter  ended  September  30,  1997,  the  Partnership   declared  a  cash
distribution  of $173,212,  of which $3,049 was allocated to the General Partner
and $170,163 was allocated to the Limited  Partners.  The  distribution  will be
made on November 26, 1997. The Partnership expects to continue paying at or near
this level in the future.  The effects of inflation have not been significant to
the  Partnership  and are not  expected  to have any  material  impact in future
periods.



<PAGE>


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

                    Computer Equipment Portfolio (Unaudited)
                               September 30, 1997

Lessee

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

Equipment Description                       Acquisition Price

Computer peripherals                         $      1,465,920
Processors & upgrades                                 899,542
Telecommunications                                    233,215
Other                                                 732,960
                                             ----------------

                                             $      3,331,637
                                             ================

<PAGE>


                           PART II. OTHER INFORMATION

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


Item 1.        Legal Proceedings
               Response:  None

Item 2.        Changes in the Rights of the Partnership's Security Holders
               Response:  None

Item 3.        Defaults by the Partnership on its Senior Securities
               Response:  None

Item 4.        Results of Votes of Security Holders
               Response:  None

Item 5.        Other Information
               Response:  None

Item 6.        Exhibits and Reports on Form 8-K
               Response:

               A.  None

               B.  None


<PAGE>


                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
(Registrant)

By:    Wellesley Leasing Partnership,
       its General Partner

By:    TLP Leasing Programs, Inc.,
       one of its Corporate General Partners


Date:  November 7, 1997

By:    Arthur P. Beecher,
       President