FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

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

                  For the quarterly period ended June 30, 2002
   --------------------------------------------------------------------------

                                       OR

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

For the transition period from _____________________ to _____________________


                             Commission file number
                                     0-17549
                     ---------------------------------------


                            CNL Income Fund IV, Ltd.
-----------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


            Florida                                         59-2854435
------------------------------------              ---------------------------
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                            Identification No.)


   450 South Orange Avenue
       Orlando, Florida                                      32801
------------------------------------              ---------------------------
(Address of principal executive offices)                  (Zip Code)


Registrant's telephone number
(including area code)                                  (407) 540-2000
                                                  ---------------------------


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  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 _____


<page>
                                    CONTENTS




                                                                        Page
Part I.

     Item 1.      Financial Statements:

                      Condensed Balance Sheets                           1

                      Condensed Statements of Income                     2

                      Condensed Statements of Partners' Capital          3

                      Condensed Statements of Cash Flows                 4

                      Notes to Condensed Financial Statements            5-6

     Item 2.      Management's Discussion and Analysis of Financial
                      Condition and Results of Operations                7-10

     Item 3.      Quantitative and Qualitative Disclosures About
                      Market Risk                                        10

Part II.

     Other Information                                                   11-12

<page>

                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>


                                                                            June 30,                December 31,
                                                                              2002                      2001
                                                                        ------------------       -------------------

 <c>
                             ASSETS

Land and buildings on operating leases, net                                 $  10,952,939             $  11,106,349
Net investment in direct financing leases                                         310,735                   323,935
Investment in joint ventures                                                    3,008,254                 3,108,042
Cash and cash equivalents                                                         531,717                   645,220
Receivables, less allowance for doubtful accounts of $9,858
    in 2002                                                                        22,628                    51,516
Due from related parties                                                               --                     4,574
Accrued rental income                                                             281,076                   269,464
Other assets                                                                       29,624                    33,675
                                                                        ------------------       -------------------

                                                                            $  15,136,973             $  15,542,775
                                                                        ==================       ===================

               LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses                                         $     8,185              $     10,252
Real estate taxes payable                                                          49,669                    48,654
Distributions payable                                                             523,947                   523,947
Due to related parties                                                            199,884                   189,985
Rents paid in advance and deposits                                                 38,792                    33,068
                                                                        ------------------       -------------------
    Total liabilities                                                             820,477                   805,906

Partners' capital                                                              14,316,496                14,736,869
                                                                        ------------------       -------------------

                                                                            $  15,136,973             $  15,542,775
                                                                        ==================       ===================
</TABLE>
           See accompanying notes to condensed financial statements.
<page>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                         CONDENSED STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                                    Quarter Ended                  Six Months Ended
                                                                      June 30,                         June 30,
                                                                2002             2001            2002            2001
                                                            --------------   -------------   --------------  --------------

 <c>
Revenues:
    Rental income from operating leases                        $  374,296       $ 385,344       $  745,520      $  760,791
    Earned income from direct financing leases                      8,266           8,786           16,666          17,693
    Contingent rental income                                        2,335          19,227           26,437          30,391
    Interest and other income                                       1,405          11,123            3,581          74,963
                                                            --------------   -------------   --------------  --------------
                                                                  386,302         424,480          792,204         883,838
                                                            --------------   -------------   --------------  --------------

Expenses:
    General operating and administrative                           59,708          65,423          131,176         163,000
    Property expenses                                              12,671          17,399           16,693          41,075
    State and other taxes                                           4,729           2,356           14,099          27,161
    Depreciation and amortization                                  77,087          82,673          154,649         167,352
    Provision for write-down of assets                                 --         178,817               --         178,817
                                                            --------------   -------------   --------------  --------------
                                                                  154,195         346,668          316,617         577,405
                                                            --------------   -------------   --------------  --------------

Income Before Loss on Sale of Assets and Equity in
    Earnings of Joint Ventures                                    232,107          77,812          475,587         306,433

Loss on Sale of Assets                                                 --         (93,792 )             --         (93,792 )

Equity in Earnings of Joint Ventures                               80,011          58,596          151,934         132,097
                                                            --------------   -------------   --------------  --------------

Net Income                                                     $  312,118       $  42,616       $  627,521      $  344,738
                                                            ==============   =============   ==============  ==============

Net Income per Limited Partner Unit                             $    5.20        $   0.71        $   10.46       $    5.75
                                                            ==============   =============   ==============  ==============

Weighted Average Number of Limited Partner
    Units Outstanding                                              60,000          60,000           60,000          60,000
                                                            ==============   =============   ==============  ==============

</TABLE>
           See accompanying notes to condensed financial statements.
<page>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                    CONDENSED STATEMENTS OF PARTNERS' CAPITAL

<TABLE>
<CAPTION>

                                                                           Six Months Ended          Year Ended
                                                                               June 30,             December 31,
                                                                                 2002                   2001
                                                                          --------------------    ------------------

 <c>
General partners:
    Beginning balance                                                           $     787,351            $  787,351
    Net income                                                                             --                    --
                                                                          --------------------    ------------------
                                                                                      787,351               787,351
                                                                          --------------------    ------------------

Limited partners:
    Beginning balance                                                              13,949,518            16,008,318
    Net income                                                                        627,521             1,089,094
    Distributions ($17.46 and $52.46 per
       limited partner unit, respectively)                                         (1,047,894 )          (3,147,894 )
                                                                          --------------------    ------------------
                                                                                   13,529,145            13,949,518
                                                                          --------------------    ------------------

Total partners' capital                                                        $   14,316,496          $ 14,736,869
                                                                          ====================    ==================
</TABLE>
           See accompanying notes to condensed financial statements.
<page>

                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                       CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                                       Six Months Ended
                                                                                           June 30,
                                                                                   2002               2001
                                                                               --------------    ----------------

 <c>
Increase (Decrease) in Cash and Cash Equivalents

    Net Cash Provided by Operating Activities                                     $  892,407         $   840,135
                                                                               --------------    ----------------

    Cash Flows from Investing Activities:
       Proceeds from sale of assets                                                       --             390,000
       Liquidating distribution from joint venture                                    41,984                  --
       Payment of lease costs                                                             --             (21,250 )
                                                                               --------------    ----------------

              Net cash used in investing activities                                   41,984             368,750
                                                                               --------------    ----------------

    Cash Flows from Financing Activities:
       Distributions to limited partners                                          (1,047,894 )        (1,500,000 )
                                                                               --------------    ----------------
              Net cash used in financing activities                               (1,047,894 )        (1,500,000 )
                                                                               --------------    ----------------

Net Decrease in Cash and Cash Equivalents                                           (113,503 )          (291,115 )

Cash and Cash Equivalents at Beginning of Period                                     645,220           1,366,871
                                                                               --------------    ----------------

Cash and Cash Equivalents at End of Period                                        $  531,717        $  1,075,756
                                                                               ==============    ================

Supplemental Schedule of Non-Cash Financing
    Activities:

       Deferred real estate disposition fees incurred and unpaid at
          end of period                                                              $    --          $   11,700
                                                                               ==============    ================

       Distributions declared and unpaid at end
          of period                                                               $  523,947         $   525,000
                                                                               ==============    ================
</TABLE>
           See accompanying notes to condensed financial statements.

<page>

                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 2002 and 2001


1.       Basis of Presentation:

         The accompanying  unaudited  condensed  financial  statements have been
         prepared in accordance  with the  instructions  to Form 10-Q and do not
         include  all  of the  information  and  note  disclosures  required  by
         generally  accepted  accounting  principles.  The financial  statements
         reflect all adjustments,  consisting of normal  recurring  adjustments,
         which are, in the opinion of management,  necessary to a fair statement
         of the results for the interim periods presented. Operating results for
         the quarter and six months ended June 30, 2002,  may not be  indicative
         of the results  that may be expected  for the year ending  December 31,
         2002.  Amounts as of  December  31,  2001,  included  in the  financial
         statements,  have been derived from audited financial  statements as of
         that date.

         These unaudited financial statements should be read in conjunction with
         the financial statements and notes thereto included in Form 10-K of CNL
         Income Fund IV, Ltd. (the  "Partnership")  for the year ended  December
         31, 2001.

         Effective  January  1,  2002,  the  Partnership  adopted  Statement  of
         Financial  Accounting  Standards No. 144 "Accounting for the Impairment
         or Disposal of  Long-Lived  Assets."  This  statement  requires  that a
         long-lived  asset be  tested  for  recoverability  whenever  events  or
         changes in  circumstances  indicate that its carrying amount may not be
         recoverable.   The  carrying  amount  of  a  long-lived  asset  is  not
         recoverable  if it  exceeds  the  sum of the  undiscounted  cash  flows
         expected to result from the use and eventual  disposition of the asset.
         The assessment is based on the carrying amount of the asset at the date
         it is tested for recoverability.  An impairment loss is recognized when
         the carrying amount of a long-lived asset exceeds its fair value. If an
         impairment is recognized,  the adjusted carrying amount of a long-lived
         asset is its new cost  basis.  The  statement  also  requires  that the
         results of  operations of a component of an entity that either has been
         disposed  of or is  classified  as  held  for  sale  be  reported  as a
         discontinued   operation  if  the  disposal   activity  was   initiated
         subsequent to the adoption of the Standard.

2.       Reclassification

         Certain  items in the  prior  year's  financial  statements  have  been
         reclassified to conform to 2002 presentation.  These  reclassifications
         had no effect on total partners' capital or net income.

3.       Investment in Joint Ventures:

         In January 2002,  Titusville  Joint Venture,  in which the  Partnership
         owned a 26.6%  interest,  sold its property to an unrelated third party
         for $180,000 and received net sales proceeds of approximately  $165,600
         resulting in a gain of approximately  $4,900 to the joint venture.  The
         property  was  identified  for  sale  as  of  December  31,  2001.  The
         Partnership and the joint venture  partner  dissolved the joint venture
         and the Partnership received approximately $42,000 representing its pro
         rata share of the joint venture's liquidating distribution.  No gain or
         loss was recorded relating to the dissolution of the joint venture.
<page>
                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 2002 and 2001


4.       Concentration of Credit Risk:

         The following  schedule  presents total rental revenues from individual
         lessees,  each  representing more than ten percent of the Partnership's
         total rental  revenues  (including  the  Partnership's  share of rental
         revenues   from   joint   ventures   and   the   properties   held   as
         tenants-in-common  with affiliates of the general partners) for each of
         the six months ended June 30:

                                                   2002              2001
                                               --------------    -------------

                      Shoney's, Inc.               $ 143,719        $ 169,479
                      Tampa Foods, L.P.              105,648           99,468

         In addition, the following schedule presents total rental revenues from
         individual  restaurant chains,  each representing more than ten percent
         of the Partnership's total rental revenues (including the Partnership's
         share of total rental  revenues from joint  ventures and the properties
         held as tenants-in-common  with affiliates of the general partners) for
         each of the six months ended June 30:

                                                        2002             2001
                                                    --------------   -----------

                Wendy's Old Fashioned
                     Hamburger Restaurants             $  164,356    $  154,248
                Denny's                                   121,606       120,068
                Shoney's                                  120,044       117,837
                Arby's                                     98,295           N/A
                Golden Corral Family Steakhouse
                     Restaurants                              N/A       104,522

         The  information   denoted  by  N/A  indicates  that  for  each  period
         presented,  the  tenant and the chain did not  represent  more than ten
         percent of the Partnership's total rental revenues.

         Although  the  Partnership's   properties  are  geographically  diverse
         throughout the United States and the  Partnership's  lessees  operate a
         variety of  restaurant  concepts,  default  by any of these  lessees or
         restaurant chains will  significantly  impact the results of operations
         of the Partnership.


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

         CNL Income  Fund IV,  Ltd.  (the  "Partnership")  is a Florida  limited
partnership that was organized on November 18, 1987, to acquire for cash, either
directly or through  joint  venture  arrangements,  both newly  constructed  and
existing restaurant  properties,  as well as land upon which restaurants were to
be constructed, which are leased primarily to operators of national and regional
fast-food and family-style  restaurant chains (collectively,  the "Properties").
The leases generally are triple-net leases, with the lessees responsible for all
repairs and maintenance, property taxes, insurance and utilities. As of June 30,
2001,  the  Partnership  owned  25  Properties  directly  and  eight  Properties
indirectly,  through joint venture or tenancy in common arrangements. As of June
30, 2002,  the  Partnership  owned 24 Properties  directly and seven  Properties
indirectly, through joint venture or tenancy in common arrangements.

Capital Resources

         The  Partnership's  primary  source of capital  is cash from  operating
activities (which includes cash received from tenants,  distributions from joint
ventures, and interest and other income received,  less cash paid for expenses).
Cash from operating activities was $892,407 and $840,135,  during the six months
ended June 30, 2002 and 2001, respectively.  The increase in cash from operating
activities  for the six months  ended June 30,  2002 was  primarily  a result of
changes in the Partnership's  working capital and changes in income and expenses
as described in "Results of Operations" below.

         Other sources and uses of capital included the following during the six
months ended June 30, 2002.

         In January 2002,  Titusville  Joint Venture,  in which the  Partnership
owned a 26.6%  interest,  sold its  Property  to an  unrelated  third  party for
$180,000 and received net sales proceeds of approximately  $165,600 resulting in
a gain  of  approximately  $4,900  to  the  joint  venture.  This  Property  was
identified  for sale as of December  31,  2001.  The  Partnership  and the joint
venture partner dissolved the joint venture in accordance with the joint venture
agreement and the Partnership  received  approximately  $42,000 representing its
pro rata share of the joint venture's liquidating distribution.  No gain or loss
was recorded  relating to the dissolution of the joint venture.  The Partnership
used  the  majority  of  the  liquidation  proceeds  to pay  liabilities  of the
Partnership.

         Currently,  rental income from the Partnership's Properties is invested
in money market accounts or other short-term,  highly liquid investments such as
demand  deposit  accounts  at  commercial  banks,   money  market  accounts  and
certificates  of deposit  with less than a 90-day  maturity  date,  pending  the
Partnership's  use  of  such  funds  to  pay  Partnership  expenses  or to  make
distributions  to the partners.  At June 30, 2002, the  Partnership had $531,717
invested in such short-term investments, as compared to $645,220 at December 31,
2001. The funds  remaining at June 30, 2002,  will be used to pay  distributions
and other liabilities of the Partnership.

Short-Term Liquidity

         The Partnership's  short-term liquidity  requirements consist primarily
of the operating expenses of the Partnership.

         The Partnership's  investment strategy of acquiring Properties for cash
and  leasing  them under  triple-net  leases to  operators  who  generally  meet
specified financial  standards  minimizes the Partnership's  operating expenses.
The general partners believe that the leases will continue to generate cash flow
in excess of operating expenses.

         The general  partners have the right,  but not the obligation,  to make
additional capital  contributions if they deem it appropriate in connection with
the operations of the Partnership.

         The Partnership  generally  distributes cash from operations  remaining
after the payment of operating  expenses of the  Partnership,  to the extent the
general partners determine that such funds are available for distribution. Based
on current and  anticipated  future cash from  operations and for the six months
ended June 30, 2002,  the  liquidating  distributions  received from  Titusville
Joint Venture, and for the six months ended June 30, 2001, the net proceeds from
the 2000 sale of the  Property  in  Topeka,  Kansas,  the  Partnership  declared
distributions  to limited  partners of  $1,047,894  and  $1,500,000  for the six
months  ended June 30, 2002 and 2001,  ($523,947  and  $525,000 for the quarters
ended June 30, 2002 and 2001),  respectively.  This represents  distributions of
$17.46  and $25.00  per unit for the six  months  ended June 30,  2002 and 2001,
respectively,  ($8.73 and $8.75 for the  quarters  ended June 30, 2002 and 2001,
respectively).  Distributions for the six months ended June 30, 2001, included a
special  distribution of $450,000,  as a result of the distribution of net sales
proceeds  from the 2000 sale of the  Property in Topeka,  Kansas.  This  special
distribution  was  effectively  a return of a portion  of the  limited  partners
investment,  although,  in accordance  with the  Partnership  agreement,  it was
applied towards the limited  partners' unpaid preferred  return.  As a result of
the sales of two  Properties  in 2001,  the  Partnership's  total  revenues were
reduced,  while the majority of the  Partnership's  operating  expenses remained
fixed.  No  distributions  were made to the general  partners for the six months
ended June 30, 2002 and 2001. No amounts distributed to the limited partners for
the six months  ended  June 30,  2002 and 2001 are  required  to be or have been
treated by the  Partnership  as a return of capital for purposes of  calculating
the  limited  partners'  return on their  adjusted  capital  contributions.  The
Partnership  intends to continue to make  distributions  of cash  available  for
distribution to the limited partners on a quarterly basis.

         Total liabilities of the Partnership,  including distributions payable,
increased  to $820,477 at June 30,  2002,  from  $805,906 at December  31, 2001,
primarily  as a result of an increase in amounts due to related  parties at June
30, 2002. Total liabilities at June 30, 2002, to the extent they exceed cash and
cash  equivalents  at June  30,  2002,  will  be  paid  from  future  cash  from
operations,  and, in the event the  general  partners  elect to make  additional
contributions or loans, from the future general partners' capital  contributions
or loans.

Long-Term Liquidity

         The  Partnership  has no long-term  debt or other  long-term  liquidity
requirements.

Results of Operations

         Total rental  revenues  were $762,186 for the six months ended June 30,
2002,  as compared to $778,484 for the six months ended June 30, 2001,  of which
$382,562 and $394,130  were earned  during the second  quarter of 2002 and 2001,
respectively.  The decrease in rental  revenues during the six months ended June
30, 2002, as compared to the same period in 2001, was partially  attributable to
the sale of the Properties in Palm Bay, Florida and Corpus Christi, Texas during
2001.  During  2001,  the  Partnership  distributed  a portion  of the net sales
proceeds from the sale of these Properties to the limited partners, as a result,
rental revenues are expected to remain at reduced amounts.

         Rental revenues also decreased  during the quarter and six months ended
June 30,  2002 due to the fact  that the  Partnership  entered  into a new lease
relating  to the  Property  in  Streator,  Illinois.  The  former  lease for the
Property in Streator,  Illinois, which was scheduled to expire in December 2002,
was terminated by the  Partnership  and the tenant during 2001. The  Partnership
re-leased this Property to a new tenant. Rents due under the new lease are lower
than rents due under the previous lease; therefore, the Partnership expects that
rental revenues in future periods will remain at reduced amounts.  However,  the
general partners do not anticipate that the decrease in rental revenues relating
to the new  lease  will have a  material  adverse  affect  on the  Partnership's
financial position or results of operations.

         The decrease in rental  revenues,  during the six months ended June 30,
2002, was partially  offset by an increase in rental revenues as a result of the
Partnership re-leasing the Property in Richmond, Virginia in 2001. This Property
was vacant during the first quarter of 2001.

         During the six months  ended June 30,  2002 and 2001,  the  Partnership
earned $26,437 and $30,391,  respectively,  in contingent rental income from the
Partnership's  Properties,  of which $2,335 and $19,227  were earned  during the
quarters ended June 30, 2002 and 2001, respectively.

         During the six months  ended June 30,  2002 and 2001,  the  Partnership
recognized  income of $151,934 and $132,097,  respectively,  attributable to net
operating  results from joint  ventures,  of which income of $80,011 and $58,596
were reported  during the quarters  ended June 30, 2002 and 2001,  respectively.
Net operating  results  reported by joint ventures were lower during the quarter
and six months ended June 30, 2001, as compared to the same period in 2002,  due
to the fact that the tenant of the Property  owned by  Titusville  Joint Venture
(in which the Partnership owns a 26.6% interest in the profits and losses of the
joint  venture)  vacated the  Property  in 1997,  and the  Partnership  incurred
expenses,  which are of a fixed nature, such as real estate taxes, insurance and
maintenance  during 2001.  In addition,  during the quarter and six months ended
June 30, 2001,  the joint  venture  established  a provision  for  write-down of
assets for its Property for approximately $38,300. The provision represented the
difference between the Property's  carrying value at June 30, 2001, and its fair
value.  During January 2002, the joint venture sold this Property,  as described
above,  in "Capital  Resources." Net income earned by joint ventures is expected
to remain at reduced  amounts as a result of  distributing  the  majority of net
sales proceeds received to the Limited Partners.

         During the six months  ended June 30,  2002,  two of the  Partnership's
lessees,  Shoney's,  Inc. and Tampa Foods,  L.P., each contributed more than ten
percent of the Partnership's  total rental revenues (including the Partnership's
share of the  rental  revenues  from  Properties  owned by  joint  ventures  and
Properties owned with affiliates of the General  Partners as  tenant-in-common).
It is anticipated  that,  based on the minimum rental  payments  required by the
leases,  Shoney's,  Inc. and Tampa Foods, L.P., each will continue to contribute
more than ten percent of the Partnership's  total rental revenues.  In addition,
during the six months  ended June 30, 2002,  four  Restaurant  Chains,  Wendy's,
Denny's,  Shoney's and Arby's,  each  accounted for more than ten percent of the
Partnership's  total rental revenues  (including the Partnership's  share of the
rental  revenues from  Properties  owned by joint ventures and Properties  owned
with affiliates of the General Partners as tenants-in-common). It is anticipated
that these four  Restaurant  Chains each will  continue to account for more than
ten percent of the total rental  revenues to which the  Partnership  is entitled
under the terms of the leases.  Any failure of these lessees or these Restaurant
Chains will materially affect the Partnership's income if the Partnership is not
able to re-lease the Properties in a timely manner.

         During the six months  ended June 30,  2002 and 2001,  the  Partnership
earned $3,581 and $74,963,  respectively, in interest and other income, of which
$1,405 and $11,123 were earned during the quarters ended June 30, 2002 and 2001,
respectively.  Interest and other income during the quarter and six months ended
June 30,  2001,  was higher  primarily  due to interest  earned on the net sales
proceeds  received  from the sale of  Properties,  pending  distribution  to the
limited partners, as described above in "Short-Term Liquidity."

         Operating expenses, including depreciation and amortization expense and
provision  for  write-down  of assets were  $316,617 and  $577,405,  for the six
months  ended  June 30,  2002 and  2001,  respectively,  of which  $154,197  and
$346,668  were  incurred  during  the  quarters  ended  June 30,  2002 and 2001,
respectively.  Operating  expenses were higher during the quarter and six months
ended June 30,  2001,  as compared  to the same period in 2002,  due to the fact
that the  Partnership  recorded a provision for write-down of assets of $178,817
relating to the Property in Palm Bay,  Florida.  The tenant  defaulted under the
terms of its lease and  vacated the  Property.  The  increase  in the  provision
represented  the  difference  between the carrying value of the Property at June
30, 2001,  and its fair value.  During August 2001,  the  Partnership  sold this
Property and  recognized a loss of  approximately  $27,100 during the year ended
December 31, 2001.  In addition,  state taxes were higher  during the six months
ended June 30,  2001,  as compared  to the same period in 2002,  due to the fact
that  the  Partnership  incurred  additional  taxes  on  gains  on the  sale  of
Properties.

         The decrease in operating expenses during the six months ended June 30,
2002, as compared to the same period in 2001, was also partially attributable to
a decrease in the costs incurred for  administrative  expenses for servicing the
Partnership and its Properties and to a decrease in depreciation  expense due to
the sale of two  Properties in 2001.  During the six months ended June 30, 2001,
the  Partnership  recorded a provision  for doubtful  accounts of  approximately
$9,900 for past due rental amounts relating to the Big Boy's Property located in
Topeka, Kansas, due to financial difficulties the tenant was experiencing.

         As a result of the sale of the Property in Corpus Christi, Texas during
2001,  the  Partnership  recognized a loss of  approximately  $93,800 during the
quarter and six months ended June 30, 2001.

         Effective  January  1,  2002,  the  Partnership  adopted  Statement  of
Financial  Accounting  Standards  No.  144  "Accounting  for the  Impairment  or
Disposal of Long-Lived  Assets." This statement requires that a long-lived asset
be tested  for  recoverability  whenever  events  or  changes  in  circumstances
indicate that its carrying amount may not be recoverable. The carrying amount of
a long-lived  asset is not recoverable if it exceeds the sum of the undiscounted
cash flows  expected  to result  from the use and  eventual  disposition  of the
asset.  The assessment is based on the carrying  amount of the asset at the date
it is tested for  recoverability.  An  impairment  loss is  recognized  when the
carrying  amount of a long-lived  asset exceeds its fair value. If an impairment
is recognized,  the adjusted  carrying  amount of a long-lived  asset is its new
cost basis.  The  statement  also  requires  that the results of operations of a
component of an entity that either has been disposed of or is classified as held
for sale be reported as a  discontinued  operation if the disposal  activity was
initiated subsequent to the adoption of the Standard.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Not applicable.
<page>
                           PART II. OTHER INFORMATION



Item 1.       Legal Proceedings.   Inapplicable.

Item 2.       Changes in Securities.  Inapplicable.

Item 3.       Defaults upon Senior Securities.  Inapplicable.

Item 4.       Submission of Matters to a Vote of Security Holders. Inapplicable.

Item 5.       Other Information.  Inapplicable.

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

              (a)  Exhibits

                     3.1      Certificate  of Limited  Partnership of CNL Income
                              Fund  IV,  Ltd.   (Included   as  Exhibit  3.1  in
                              Amendment  No.  1 to  Registration  Statement  No.
                              33-20249 on Form S-11 and  incorporated  herein by
                              reference.)

                     3.2      Amended and Restated  Agreement and Certificate of
                              Limited  Partnership  of CNL Income  Fund IV, Ltd.
                              (Included  as Exhibit  3.2 to Form 10-K filed with
                              the  Securities  and Exchange  Commission on March
                              31, 1994, and incorporated herein by reference.)

                     4.1      Certificate  of Limited  Partnership of CNL Income
                              Fund  IV,  Ltd.   (Included   as  Exhibit  3.1  in
                              Amendment  No.  1 to  Registration  Statement  No.
                              33-20249 on Form S-11 and  incorporated  herein by
                              reference.)

                     4.2      Amended and Restated  Agreement and Certificate of
                              Limited  Partnership  of CNL Income  Fund IV, Ltd.
                              (Included  as Exhibit  3.2 to Form 10-K filed with
                              the  Securities  and Exchange  Commission on March
                              31, 1994, and incorporated herein by reference.)

                     10.1     Property Management Agreement (Included as Exhibit
                              10.1 to Form 10-K  filed with the  Securities  and
                              Exchange   Commission  on  March  31,  1994,   and
                              incorporated herein by reference.)

                     10.2     Assignment of Property  Management  Agreement from
                              CNL   Investment   Company  to  CNL  Income   Fund
                              Advisors,  Inc.  (Included as Exhibit 10.2 to Form
                              10-K  filed  with  the   Securities  and  Exchange
                              Commission  on March 30,  1995,  and  incorporated
                              herein by reference.)

                     10.3     Assignment of Property  Management  Agreement from
                              CNL  Income  Fund  Advisors,   Inc.  to  CNL  Fund
                              Advisors,  Inc.  (Included as Exhibit 10.3 to Form
                              10-K  filed  with  the   Securities  and  Exchange
                              Commission  on April  1,  1996,  and  incorporated
                              herein by reference.)

                     10.4     Assignment of Management  Agreement  from CNL Fund
                              Advisors,  Inc. to CNL APF Partners, LP. (Included
                              as  Exhibit  10.4  to Form  10-Q  filed  with  the
                              Securities  and Exchange  Commission  on August 9,
                              2001, and incorporated herein by reference.)

                     10.5     Assignment  of Management  Agreement  from CNL APF
                              Partners, LP to CNL Restaurants XVIII, Inc. (Filed
                              herewith.)

                     (b)      Reports on Form 8-K

                              No  reports  on Form 8-K  were  filed  during  the
                              quarter ended June 30, 2002.

<page>

                                   SIGNATURES


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

         DATED this 12th day of August, 2002.


                                       CNL INCOME FUND IV, LTD.

                                       By:CNL REALTY CORPORATION
                                          General Partner


                                           By:/s/ James M. Seneff, Jr.
                                              ---------------------------
                                              JAMES M. SENEFF, JR.
                                              Chief Executive Officer
                                              (Principal Executive Officer)


                                           By:/s/ Robert A. Bourne
                                              ---------------------------
                                              ROBERT A. BOURNE
                                              President and Treasurer
                                              (Principal Financial and
                                              Accounting Officer)
<page>



                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER
                          OF CORPORATE GENERAL PARTNER

            PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, James M. Seneff, Jr., the Chief Executive Officer of CNL Realty
Corporation,  the  corporate  general  partner of CNL Income Fund IV, Ltd.  (the
"Partnership"),  has executed this  certification  in connection with the filing
with the  Securities  and Exchange  Commission  of the  Partnership's  Quarterly
Report on Form 10-Q for the period  ending  June 30,  2002 (the  "Report").  The
undersigned hereby certifies that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) the  information  contained in the Report fairly  presents,  in all material
respects, the financial condition and results of operations of the Partnership.



Date:  August 12, 2002                        /s/ James M. Seneff, Jr.
                                              -----------------------------
                                              Name:  James M. Seneff, Jr.
                                              Title:   Chief Executive Officer


<page>

                    CERTIFICATION OF CHIEF FINANCIAL OFFICER
                          OF CORPORATE GENERAL PARTNER

            PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The  undersigned,  Robert A. Bourne,  the  President and Treasurer of CNL Realty
Corporation,  the  corporate  general  partner of CNL Income Fund IV, Ltd.  (the
"Partnership"),  has executed this  certification  in connection with the filing
with the  Securities  and Exchange  Commission  of the  Partnership's  Quarterly
Report on Form 10-Q for the period  ending  June 30,  2002 (the  "Report").  The
undersigned hereby certifies that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) the  information  contained in the Report fairly  presents,  in all material
respects, the financial condition and results of operations of the Partnership.



Date:   August 12, 2002                        /s/ Robert A. Bourne
                                               ------------------------------
                                               Name:  Robert A. Bourne
                                               Title: President and Treasurer
<page>




                                  EXHIBIT INDEX


     Exhibit Number


         3.1      Certificate of Limited Partnership of CNL Income Fund IV, Ltd.
                  (Included  as Exhibit 3.1 in Amendment  No. 1 to  Registration
                  Statement No. 33-20249 on Form S-11 and incorporated herein by
                  reference.)

         3.2      Amended and  Restated  Agreement  and  Certificate  of Limited
                  Partnership  of CNL Income Fund IV, Ltd.  (Included as Exhibit
                  3.2 to Form  10-K  filed  with  the  Securities  and  Exchange
                  Commission  on March  31,  1994,  and  incorporated  herein by
                  reference.)

         4.1      Certificate of Limited Partnership of CNL Income Fund IV, Ltd.
                  (Included  as Exhibit 3.1 in Amendment  No. 1 to  Registration
                  Statement No. 33-20249 on Form S-11 and incorporated herein by
                  reference.)

         4.2      Amended and  Restated  Agreement  and  Certificate  of Limited
                  Partnership  of CNL Income Fund IV, Ltd.  (Included as Exhibit
                  3.2 to Form  10-K  filed  with  the  Securities  and  Exchange
                  Commission  on March  31,  1994,  and  incorporated  herein by
                  reference.)

         10.1     Property  Management  Agreement  (Included  as Exhibit 10.1 to
                  Form 10-K filed with the Securities and Exchange Commission on
                  March 31, 1994, and incorporated herein by reference.)

         10.2     Assignment   of  Property   Management   Agreement   from  CNL
                  Investment Company to CNL Income Fund Advisors, Inc. (Included
                  as Exhibit  10.2 to Form 10-K filed  with the  Securities  and
                  Exchange Commission on March 30, 1995, and incorporated herein
                  by reference.)

         10.3     Assignment of Property  Management  Agreement  from CNL Income
                  Fund Advisors,  Inc. to CNL Fund Advisors,  Inc.  (Included as
                  Exhibit  10.3 to Form  10-K  filed  with  the  Securities  and
                  Exchange  Commission on April 1, 1996, and incorporated herein
                  by reference.)

         10.4     Assignment of  Management  Agreement  from CNL Fund  Advisors,
                  Inc. to CNL APF  Partners,  LP.  (Included  as Exhibit 10.4 to
                  Form 10-Q filed with the Securities and Exchange Commission on
                  August 9, 2001, and incorporated herein by reference.)

         10.5     Assignment of Management  Agreement from CNL APF Partners,  LP
                  to CNL Restaurants XVIII, Inc. (Filed herewith.)
<page>










                                  EXHIBIT 10.5