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

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

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

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


For Quarter Ended June 30, 1998                     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)



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

Part I.       FINANCIAL INFORMATION

              Financial Statements

                    Balance Sheets as of June 30, 1998 and December 31, 1997                        3

                    Statements of Operations
                          Quarters Ended June 30, 1998 and 1997 and
                          Six Months Ended June 30, 1998 and 1997                                   4

                    Statements of Cash Flows
                          Six Months Ended June 30, 1998 and 1997                                   5

                    Notes to Financial Statements                                                   6 - 8

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

              Computer Equipment Portfolio                                                          12

Part II.      OTHER INFORMATION

              Items 1 - 6                                                                           13

              Signature                                                                             14

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

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

                                 Balance Sheets

                                     Assets                                        (Unaudited)              (Audited)
                                                                                     6/30/98                 12/31/97
                                                                                 ----------------        ----------------
<S>                                                                              <C>                     <C>             
Investment property, at cost (note 3):
   Computer equipment                                                            $      2,917,284        $      2,974,475
     Less accumulated depreciation                                                      2,547,464               2,341,847
                                                                                 ----------------        ----------------
       Investment property, net                                                           369,820                 632,628

Cash and cash equivalents                                                                  48,705                 166,324
Rents receivable, net (note 2)                                                             14,959                  22,796
Account receivable - affiliates                                                            20,423                   2,456
Other assets                                                                               25,421                  35,622
                                                                                 ----------------        ----------------

     Total assets                                                                $        479,328        $        859,826
                                                                                 ================        ================

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                    $        110,007        $        210,270
   Accounts payable and accrued expenses - affiliates (note 4)                             14,421                  12,017
   Accounts payable and accrued expenses                                                   49,237                  38,799
   Unearned rental revenue                                                                  6,784                   4,978
   Long-term debt, less current portion (note 5)                                           16,900                  66,109
                                                                                 ----------------        ----------------

     Total liabilities                                                                    197,349                 332,173
                                                                                 ----------------        ----------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                   1,000
     Cumulative net income                                                                633,399                 625,237
     Cumulative cash distributions                                                       (634,399)               (626,237)
                                                                                 ----------------        ----------------
                                                                                                -                       -
                                                                                 ----------------        ----------------
   Limited Partners (27,226 units):
     Capital contribution, net of offering costs                                       12,148,459              12,148,459
     Cumulative net income                                                                523,344                 564,650
     Cumulative cash distributions                                                    (12,389,824)            (12,185,456)
                                                                                 ----------------        ----------------
                                                                                          281,979                 527,653
                                                                                 ----------------        ----------------
     Total partners' equity                                                               281,979                 527,653
                                                                                 ----------------        ----------------

     Total liabilities and partners' equity                                      $        479,328        $        859,826
                                                                                 ================        ================

                See accompanying notes to financial 6statements.
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Operations
                                   (Unaudited)

                                                     Quarters Ended                         Six Months Ended
                                                        June 30,                                June 30,
                                           --------------------------------       ----------------------------------
                                                 1998              1997                1998                1997
                                           --------------------------------       ----------------------------------

<S>                                        <C>               <C>                  <C>                <C>            
Revenue:
   Rental income                           $     167,420     $      350,259       $      336,364     $       604,687
   Other income                                        -             10,964                    -              37,677
   Interest income                                   664              2,273                1,852               3,652
   Net (loss) gain on sale
     of equipment                                     95            (55,378)               2,174             101,630
   Net loss on sale of
     marketable securities                             -                  -                    -                (117)
                                           -------------     --------------       --------------     ---------------

       Total revenue                             168,179            308,118              340,390             747,529
                                           -------------     --------------       --------------     ---------------

Costs and expenses:
   Depreciation                                  130,681            151,190              261,431             349,619
   Interest                                        3,890             10,377                9,345              21,432
   Related party expenses (note 4):
     Management fees                              13,573             21,136               26,329              35,902
     General and administrative                   38,504             38,867               76,184              81,676
   (Reversal of) provision for
     doubtful accounts                            (4,592)             3,673                  244             (20,117)
                                           -------------     --------------       --------------     ---------------

       Total costs and expenses                  182,056            225,243              373,533             468,512
                                           -------------     --------------       --------------     ---------------

Net income (loss)                          $     (13,877)    $       82,875       $      (33,143)    $       279,017
                                           =============     ==============       ==============     ===============

Net income (loss) per Limited
   Partnership Unit                        $       (0.61)    $         2.81       $        (1.52)    $          9.88
                                           =============     ==============       ==============     ===============

                 See accompanying notes to financial statements.
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                            Statements of Cash Flows
                     Six Months Ended June 30, 1998 and 1997
                                   (Unaudited)

                                                                                           1998                      1997
                                                                                           ----                      ----

<S>                                                                                  <C>                      <C>            
Cash flows from operating activities:
   Net income (loss)                                                                 $      (33,143)          $       279,017
                                                                                     --------------           ---------------

   Adjustments to reconcile  net income (loss) to net cash
     provided by operating activities:
       Depreciation                                                                         261,431                   349,619
       (Reversal of) provision for doubtful accounts                                            244                   (20,117)
       Net gain on sale of equipment                                                         (2,174)                 (101,630)
       Net loss on sale of marketable securities                                                  -                       117
       Net (increase) decrease in current assets                                               (174)                 (100,801)
       Net increase (decrease) in current liabilities                                        14,648                   (54,490)
                                                                                     --------------           ---------------

         Total adjustments                                                                  273,975                    72,698
                                                                                     --------------           ---------------

         Net cash provided by operating activities                                          240,832                   351,715
                                                                                     --------------           ---------------

Cash flows from investing activities:
   Proceeds from sale of investment property                                                  3,551                   202,885
   Proceeds from sale of marketable securities                                                    -                       633
                                                                                     --------------           ---------------

         Net cash provided by (used in) investing activities                                  3,551                   203,518
                                                                                     --------------           ---------------

Cash flows from financing activities:
   Proceeds from borrowing on long-term debt                                                      -                   230,336
   Principal payments on long-term debt                                                    (149,472)                 (401,787)
   Cash distributions to partners                                                          (212,530)                 (209,625)
                                                                                     --------------           ---------------

         Net cash used in financing activities                                             (362,002)                 (381,076)
                                                                                     --------------           ---------------

Net increase (decrease) in cash and cash equivalents                                       (117,619)                  174,157

Cash and cash equivalents at beginning of period                                            166,324                    36,022
                                                                                     --------------           ---------------

Cash and cash equivalents at end of period                                           $       48,705           $       210,179
                                                                                     ==============           ===============

Supplemental cash flow information:
   Interest paid during the period                                                   $        9,345           $        21,432
                                                                                     ==============           ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


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

                          Notes to Financial Statements
                Six Months Ended June 30, 1998 and June 30, 1997
                                   (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, 1997.

(2)   Significant Accounting Policies

Allowance for Doubtful Accounts

The financial  statements  include allowances for estimated losses on receivable
balances.  The  allowances  for  doubtful  accounts  are based on past write off
experience  and an evaluation  of potential  uncollectible  accounts  within the
current  receivable  balances.  Receivable  balances  which are determined to be
uncollectible  are charged against the allowance and subsequent  recoveries,  if
any, are credited to the allowance.  At June 30, 1998 and December 31, 1997, the
allowance for doubtful  accounts  included in rents  receivable  was $12,814 and
$25,985, respectively.

Reclassifications

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

(3)   Investment Property

At June 30, 1998, the  Partnership  owned computer  equipment with a depreciated
cost basis of $369,820.  All purchases of computer equipment are subject to a 3%
acquisition fee paid to the General Partner.


<PAGE>


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

                          Notes to Financial Statements
                Six Months Ended June 30, 1998 and June 30, 1997
                                   (Unaudited)

(4)   Related Party Transactions

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

                                                 1998              1997
                                                 ----              ----

Management fees                              $     26,329       $     35,902
Reimbursable expenses paid                         71,393             80,367
                                             ------------       ------------

                                             $     97,722       $    116,269
                                             ============       ============

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

(5)   Long-term Debt

Long-term  debt at June 30, 1998 consists of two loans  totaling  $126,907,  one
bearing  interest at 9.00% and the other loan  bearing  interest  at 8.25%.  The
total  outstanding debt balance is  collateralized  by equipment with a net book
value of $187,047, and assignment of the related leases.

Maturities of long-term debt are as follows:

                              1998                   $       60,798
                              1999                           66,109
                                                     --------------

                                                     $      126,907
                                                     ==============


<PAGE>


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

                          Notes to Financial Statements
                Six Months Ended June 30, 1998 and June 30, 1997
                                   (Unaudited)

(6)   Fair Values of Financial Instruments

Pursuant to Statement of Financial Accounting Standards No. 115, "Accounting for
Certain Investments in Debt and Equity  Securities," which requires  investments
in debt and equity  securities  other than those  accounted for under the equity
method  to be  carried  at fair  value or  amortized  cost  for debt  securities
expected to be held to maturity,  the Partnership has classified its investments
in equity  securities as available  for sale.  Accordingly,  the net  unrealized
gains and losses computed in marking these  securities to market are reported as
a component  of partners'  equity.  At June 30,  1998,  there are no  marketable
securities owned by the Partnership,  therefore,  there is no unrealized gain or
loss included in partners' equity.

The fair value is based on currently  quoted market  prices.  The cost basis and
estimated fair value of the Partnership's marketable securities at June 30, 1998
and December 31, 1997, respectively, are as follows:

<TABLE>
<CAPTION>
                                                                            June 30, 1998               December 31, 1997
                                                                       ------------------------     ---------------------------

                                                                       Cost           Fair          Cost               Fair
                                                                       Basis          Value         Basis              Value
                                                                       ---------      ---------     --------           --------

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

</TABLE>


<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

Results of Operations

The following discussion relates to the Partnership's operations for the quarter
and six month periods ended June 30, 1998 compared to the same periods in 1997.

The  Partnership  realized net income  (loss) of  $(13,877)  and $82,875 for the
quarters ended June 30, 1998 and 1997, respectively.  Rental income decreased by
$182,839 or 52% 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 decreased as a
result of lower average short-term  investment  balances held during the current
quarter. The net loss on sale of equipment in the prior quarter is primarily due
to sales of equipment carrying high net book values.

Total  costs and  expenses  decreased  $43,187 or 19%  between  the three  month
periods. The decrease in costs and expenses is mainly due to the $20,509 decline
in  depreciation  expense  during the current  quarter in comparison to the same
period in 1997. 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 $6,487 as the
Partnership  continued to paydown the  principle  on  long-term  debt during the
current  quarter.  Management fees decreased in correlation  with the decline in
rental income.  General and  administrative  expenses  remained  relatively flat
between the three month periods. A reversal of a provision for doubtful accounts
of $(4,592) was  recorded due to  successful  collection  efforts on  delinquent
rents receivable.

The Partnership realized net income (loss) of $(33,143) and $279,017 for the six
month  periods  ended  June  30,  1998 and  1997,  respectively.  Rental  income
decreased  $268,323 or 44%. 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  decreased
between the six month periods as a result of lower average  short-term  balances
held  during  the  current  six month  period.  The  $2,174  net gain on sale of
equipment is the result of sales of equipment  carrying low net book values. The
net loss on sale of marketable  securities in 1997 reflects the below-cost  sale
of  Continental  Information  systems  Corporation  stock.  The  stock  had been
received  from the Trustee of the  Liquidating  Estate of CIS  Corporation  (the
"Estate"), the former ultimate parent company of the General Partner, as part of
a settlement  of certain  outstanding  issues  between the  Partnership  and the
Estate.



<PAGE>


                     WELLESLEY INCOME LIMITED PARTNERSHIP IV
                      (A Massachusetts Limited Partnership)

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

Total costs and expenses decreased $94,979 or 20% between the six month periods.
The  decrease in costs and  expenses is mainly due to the $88,188 or 25% decline
in  depreciation  expense.  As  discussed  in the quarter  analysis  above,  the
decrease  in  depreciation  expense is due to a large  portion of the  equipment
portfolio  becoming  fully  depreciated  and due to an overall  reduction in the
equipment  portfolio.  Interest  expense  decreased  $12,087 as the  Partnership
continued to paydown the  principle on its  long-term  debt during the six month
period  ended June 30, 1998.  Management  fees  decreased  between the six month
periods due to the decline in rental income.  The $20,117  reversal of provision
for  doubtful  accounts  is the  result  of  successful  collection  efforts  of
delinquent rents receivable in 1997.

The  Partnership  recorded  net income  (loss) per Limited  Partnership  Unit of
$(0.61) and $2.81 for the quarters  ended June 30, 1998 and 1997,  respectively,
and a net loss and net income of $(1.52) and $9.88 for the six months ended June
30, 1998 and 1997,  respectively.  The  allocation for the six months ended June
30,  1998  includes  a cost  recovery  allocation  of profit  and loss among the
General and  Limited  Partners.  This cost  recovery  allocation  is required to
maintain  capital accounts  consistent with the  distribution  provisions of the
Partnership Agreement.  In certain periods, the cost recovery of profit and loss
may result in an  allocation  of net loss to the Limited  Partners in  instances
when the Partnership's operations were profitable for the period.

Liquidity and Capital Resources

For the six months ended June 30, 1998,  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
$347,609 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 $15,416,  generating  $3,551 in proceeds.  Included in
equipment  sales is a  $14,040  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 included a paydown on long-term debt of
$149,472.  The Partnership will payoff its remaining  long-term debt of $126,907
in 1999.  Total debt assumed by the  Partnership  from inception is $14,500,441,
for a total leverage of 43%.

Cash  distributions  are  currently  at  an  annual  level  of  2%  per  Limited
Partnership Unit or $2.50 per Limited Partnership Unit on a quarterly basis. For
the quarter ended June 30, 1998, the Partnership declared a cash distribution of
$70,931,  of which $2,866 was  allocated to the General  Partner and $68,065 was
allocated to the Limited  Partners.  The distribution will be made on August 28,
1998. The  Partnership  expects to continue  paying at or near this level in the
future.  The effects of inflation have not been  significant to the  Partnership
and are not expected to have any material impact in future periods.



<PAGE>


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

                    Computer Equipment Portfolio (Unaudited)
                                  June 30, 1998

Lessee

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

Equipment Description                       Acquisition Price

Computer peripherals                         $      1,295,608
Processors & upgrades                                 803,108
Telecommunications                                     89,234
Other                                                 729,334
                                             ----------------

                                             $      2,917,284
                                             ================

<PAGE>


                           PART II. OTHER INFORMATION

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


Item 1.        Legal Proceedings
               Response:  None

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

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

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

Item 5.        Other Information
               Response:  None

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

               A.  None

               B.  None


<PAGE>


                                    SIGNATURE

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

WELLESLEY LEASE INCOME LIMITED PARTNERSHIP IV
(Registrant)

By:    Wellesley Leasing Partnership,
       its General Partner

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


Date:  August 13, 1998

By:    Arthur P. Beecher,
       President