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 September 30, 2001
   --------------------------------------------------------------------------

                                       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             5-7

     Item 2.      Management's Discussion and Analysis of Financial
                      Condition and Results of Operations                 8-13

     Item 3.      Quantitative and Qualitative Disclosures About
                      Market Risk                                         13

Part II.

     Other Information                                                    14-15





<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                               September 30,             December 31,
                                                                    2001                     2000
                                                             -------------------      -------------------

 <c>
                               ASSETS

   Land and buildings on operating leases, net                     $ 11,183,054             $ 12,385,122
   Net investment in direct financing leases                            325,868                  339,689
   Investment in joint ventures                                       3,138,640                3,197,510
   Cash and cash equivalents                                          1,330,467                1,366,871
   Receivables, less allowance for doubtful accounts
       of $78,464 and $301,517, respectively                             50,876                   45,144
   Due from related parties                                              12,649                   15,226
   Prepaid expenses                                                      13,432                   14,931
   Lease costs, less accumulated amortization of
       $24,477 and $22,913, respectively                                 20,717                    1,031
   Accrued rental income                                                267,186                  250,635
                                                             -------------------      -------------------

                                                                   $ 16,342,889             $ 17,616,159
                                                             ===================      ===================

                  LIABILITIES AND PARTNERS' CAPITAL

   Accounts payable                                                  $    4,841               $   45,070
   Accrued and escrowed real estate taxes payable                        59,867                   48,508
   Distributions payable                                              1,123,943                  525,000
   Due to related parties                                               204,593                  172,677
   Rents paid in advance and deposits                                    56,430                   29,235
                                                             -------------------      -------------------
       Total liabilities                                              1,449,674                  820,490

   Partners' capital                                                 14,893,215               16,795,669
                                                             -------------------      -------------------

                                                                   $ 16,342,889             $ 17,616,159
                                                             ===================      ===================
</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                 Nine Months Ended
                                                                     September 30,                   September 30,
                                                                  2001            2000            2001           2000
                                                              -------------    ------------   -------------  -------------

 <c>
Revenues:
    Rental income from operating leases                          $ 372,195       $ 372,013      $1,132,986     $1,400,592
    Adjustments to accrued rental income                                --              --              --        (51,520 )
    Earned income from direct financing leases                       8,661          10,453          26,354         70,236
    Contingent rental income                                         4,555           1,741          34,946         15,242
    Lease termination income                                        67,073              --          67,073             --
    Interest and other income                                          858          28,914          75,821         59,912
                                                              -------------    ------------   -------------  -------------
                                                                   453,342         413,121       1,337,180      1,494,462
                                                              -------------    ------------   -------------  -------------

Expenses:
    General operating and administrative                            31,943          49,805         190,306        146,938
    Bad debt expense                                                   165              --          10,033         12,685
    Professional services                                            2,727          12,727          31,612         36,365
    Real estate taxes                                               16,301          22,407          23,260         46,548
    State and other taxes                                            1,168              10          28,329         17,759
    Depreciation and amortization                                   77,720          90,941         245,072        320,925
    Transaction costs                                                   --              --              --         61,442
                                                              -------------    ------------   -------------  -------------
                                                                   130,024         175,890         528,612        642,662
                                                              -------------    ------------   -------------  -------------

Income Before Equity in Earnings of Joint Ventures,
    Gain (Loss) on Sale of Assets and Provision for
    Loss on Assets                                                 323,318         237,231         808,568        851,800

Equity in Earnings of Joint Ventures                                80,513          71,069         212,610        210,199

Gain (Loss) on Sale of Assets                                      (27,080 )       582,112        (120,872 )    1,134,692

Provision for Loss on Assets                                            --              --        (178,817 )     (387,612 )
                                                              -------------   -------------   -------------  -------------

Net Income                                                       $ 376,751       $ 890,412       $ 721,489     $1,809,079
                                                              =============    ============   =============  =============

Allocation of Net Income:
    General partners                                                $   --          $   --          $   --         $   --
    Limited partners                                               376,751         890,412         721,489      1,809,079
                                                              -------------    ------------   -------------  -------------

                                                                 $ 376,751       $ 890,412       $ 721,489     $1,809,079
                                                              =============    ============   =============  =============

Net Income per Limited Partner Unit                               $   6.27        $  14.84       $   12.02      $   30.15
                                                              =============    ============   =============  =============

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>
                                                   Nine Months Ended            Year Ended
                                                     September 30,             December 31,
                                                          2001                     2000
                                                -------------------------    ------------------

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

Limited partners:
    Beginning balance                                         16,008,318            18,980,008
    Net income                                                   721,489             2,078,310
    Distributions ($43.73 and $84.17 per
       limited partner unit, respectively)                    (2,623,943 )          (5,050,000 )
                                                -------------------------    ------------------
                                                              14,105,864            16,008,318
                                                -------------------------    ------------------

Total partners' capital                                    $  14,893,215          $ 16,795,669
                                                =========================    ==================


</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>
                                                                                      Nine Months Ended
                                                                                        September 30,
                                                                                   2001               2000
                                                                               --------------    ---------------

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

    Net Cash Provided by Operating Activities                                     $1,329,952         $1,409,168
                                                                               --------------    ---------------

    Cash Flows from Investing Activities:
       Proceeds from sale of assets                                                  679,894          3,442,908
       Payment of lease costs                                                        (21,250 )               --
                                                                               --------------    ---------------
          Net cash provided by investing activities                                  658,644          3,442,908
                                                                               --------------    ---------------

    Cash Flows from Financing Activities:
       Distributions to limited partners                                          (2,025,000 )       (1,800,000 )
                                                                               --------------    ---------------
          Net cash used in financing activities                                   (2,025,000 )       (1,800,000 )
                                                                               --------------    ---------------

Net Increase (Decrease) in Cash and Cash Equivalents                                 (36,404 )        3,052,076

Cash and Cash Equivalents at Beginning of Period                                   1,366,871            725,493
                                                                               --------------    ---------------

Cash and Cash Equivalents at End of Period                                        $1,330,467         $3,777,569
                                                                               ==============    ===============

Supplemental Schedule of Non-Cash Investing and
    Financing Activities:

       Deferred real estate disposition fees incurred and
          unpaid at end of period                                                   $ 21,023          $ 103,457
                                                                               ==============    ===============

       Distributions declared and unpaid at end
          of period                                                               $1,123,943         $3,325,000
                                                                               ==============    ===============

</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 Nine Months Ended September 30, 2001 and 2000


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 nine  months  ended  September  30,  2001,  may not be
         indicative  of the  results  that may be  expected  for the year ending
         December  31, 2001.  Amounts as of December  31, 2000,  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, 2000.

2.       Reclassification:
         ----------------

         Certain  items in the  prior  year's  financial  statements  have  been
         reclassified to conform to 2001 presentation.  These  reclassifications
         had no effect on total partners' capital or net income.

3.       Land and Building on Operating Leases:
         -------------------------------------

         As of December 31, 2000, the Partnership  recorded a provision for loss
         on assets of $387,612 for financial  reporting purposes relating to the
         property in Palm Bay,  Florida.  The tenant of this property  filed for
         bankruptcy  and ceased  payment  of rents  under the terms of its lease
         agreement.   The  provision  represented  the  difference  between  the
         carrying  value of the  property at  December  31, 2000 and the general
         partners' estimated net realizable value for the property.  At June 30,
         2001, the Partnership  increased the provision by $178,817 to $566,429.
         The adjusted provision  represented the difference between the carrying
         value of the  property  at June 30,  2001 and the  estimated  net sales
         proceeds from the sale of the property  based on a sales  contract with
         an unrelated  third party.  In August 2001,  the  Partnership  sold the
         property  and received net sales  proceeds of  approximately  $289,894,
         resulting in a loss of  approximately  $27,100 for financial  reporting
         purposes.  In  connection  with the sale,  the  Partnership  incurred a
         deferred, subordinated, real estate disposition fee of $9,323 (see Note
         5.)


<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
           Quarters and Nine Months Ended September 30, 2001 and 2000


3.       Land and Building on Operating Leases - Continued:
         -------------------------------------------------

         In June 2001,  the  Partnership  sold its  property in Corpus  Christi,
         Texas to the  tenant  and  received  net sales  proceeds  of  $390,000,
         resulting in a loss of  approximately  $93,800 for financial  reporting
         purposes.  In  connection  with the sale,  the  Partnership  incurred a
         deferred subordinated, real estate disposition fee of $11,700 (see Note
         5).

4.       Concentration of Credit Risk:
         ----------------------------

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


                                                2001               2000
                                            --------------    ---------------

                     Shoney's, Inc.              $246,792           $232,473
                     Tampa Foods, L.P.            151,313                N/A

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

                                                      2001          2000
                                                   -------------  -----------

                     Wendy's Old Fashioned
                         Hamburger Restaurants         $230,488   $299,657
                     Denny's                            180,933    179,958
                     Shoney's                           170,181    271,206

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


<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
           Quarters and Nine Months Ended September 30, 2001 and 2000


4.       Concentration of Credit Risk - Continued:
         ----------------------------------------

         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 could significantly  impact the results of operations
         of the  Partnership  if the  Partnership  is not able to  re-lease  the
         Properties in a timely manner.

5.       Related Party Transactions:
         --------------------------

         An  affiliate  of the  Partnership  is  entitled to receive a deferred,
         subordinated real estate  disposition fee, payable upon the sale of one
         or more  properties  based on the lesser of one-half  of a  competitive
         real  estate  commission  or three  percent  of the sales  price if the
         affiliate  provides a substantial amount of services in connection with
         the  sale.  However,  if the net sales  proceeds  are  reinvested  in a
         replacement  property,  no such real  estate  disposition  fees will be
         incurred  until  such  replacement  property  is sold and the net sales
         proceeds are  distributed.  The payment of the real estate  disposition
         fee is  subordinated  to  receipt  by the  limited  partners  of  their
         aggregate   10%  preferred   return,   plus  their   adjusted   capital
         contributions.  During the nine months ended  September  30, 2001,  the
         Partnership  incurred deferred,  subordinated,  real estate disposition
         fees of $21,023 as a result of the sale of two properties (see Note 3.)



<PAGE>


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
September  30,  2001,  the  Partnership  owned  32  Properties,  which  included
interests in six Properties  owned by joint ventures in which the Partnership is
a co-venturer and two Properties  owned with affiliates of the general  partners
as tenants-in-common.

Capital Resources

         The Partnership's primary source of capital is cash from operations
(which includes cash received from tenants, distributions from joint ventures,
and interest and other income received, less cash paid for expenses). Cash from
operations was $1,329,952 and $1,409,168, during the nine months ended September
30, 2001 and 2000, respectively. The decrease in cash from operations for the
nine months ended September 30, 2001 was primarily a result of changes in the
Partnership's income and expenses as described in "Results of Operations" below
and changes in the Partnership's working capital.

         Other  sources and uses of capital  included the  following  during the
nine months ended September 30, 2001.

         During 2001, the  Partnership  sold its  Properties in Corpus  Christi,
Texas, and Palm Bay,  Florida,  and received net sales proceeds of approximately
$679,900,  resulting in losses of $120,872 for financial reporting purposes.  In
connection  with the  sale,  the  Partnership  incurred  deferred,  real  estate
disposition fees of $21,023.  The Partnership intends to distribute the majority
of the net sales proceeds to the limited partners.

         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 September  30, 2001,  the  Partnership  had
$1,330,467 invested in such short-term investments, as compared to $1,366,871 at
December 31, 2000. The funds remaining at September 30, 2001 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 net sales proceeds
from  the  2001  and  2000  sales  of  Properties,   the  Partnership   declared
distributions  to limited  partners of $2,623,943  and  $4,525,000  for the nine
months ended  September 30, 2001 and 2000,  ($1,123,943  and  $3,325,000 for the
quarters  ended  September  30, 2001 and 2000),  respectively.  This  represents
distributions  of $43.73 and $75.42 per unit for the nine months ended September
30,  2001 and 2000,  respectively,  ($18.73  and $55.42 for the  quarters  ended
September 30, 2001 and 2000,  respectively).  Distributions  for the quarter and
nine months ended September 30, 2001, included special distributions of $600,000
and  $1,050,000,  respectively,  as a result  of the  distribution  of net sales
proceeds from the 2000 and 2001 sales of three Properties. Distributions for the
nine  months  ended  September  30,  2000  included   $2,800,000  in  a  special
distribution  as a result of the  distribution  of net sales  proceeds  from the
sales of three Properties. These special distributions were 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 several  Properties  in 2000 and
2001,  the  Partnership's  total revenue was reduced,  while the majority of the
Partnership's operating expenses remained fixed. Therefore, distributions of net
cash flow were  adjusted  commencing  the quarter  ended  September 30, 2000. No
distributions  were made to the general partners for the quarter and nine months
ended  September  30,  2001 and 2000.  No  amounts  distributed  to the  limited
partners for the nine months ended  September  30, 2001 and 2000 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  $1,449,674  at September  30, 2001,  from $820,490 at December 31,
2000,  primarily as a result of accruing a special distribution of $600,000 from
net sales  proceeds  at  September  30,  2001 from the sales of  Properties,  as
described  above.  Total  liabilities  at September 30, 2001, to the extent they
exceed cash and cash equivalents, will be paid from anticipated future cash from
operations,  or in the  event  the  general  partners  elect to make  additional
capital  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.


<PAGE>


Results of Operations

         During the nine months ended September 30, 2000, the Partnership  owned
and leased 30 wholly owned Properties (including four Properties which were sold
during  2000)  and  during  the  nine  months  ended  September  30,  2001,  the
Partnership  owned  and  leased  26  wholly  owned  Properties,  (including  two
Properties  which were sold in 2001)  generally to  operators  of fast-food  and
family-style restaurant chains. In connection therewith,  during the nine months
ended  September  30,  2001 and 2000,  the  Partnership  earned  $1,194,286  and
$1,434,550 in rental income from operating leases (net of adjustments to accrued
rental income), earned income from direct financing leases and contingent rental
income,  $385,411  and $384,207 of which was earned  during the  quarters  ended
September 30, 2001 and 2000,  respectively.  The decrease in rental,  earned and
contingent  rental  income  during the nine months ended  September 30, 2001, as
compared to the nine months ended September 30, 2000, was partially attributable
to the sale of two Properties in 2001 and four Properties during 2000.

         The decrease in rental,  earned and contingent rental income during the
nine months  ended  September  30,  2001,  as compared to the nine months  ended
September  30, 2000,  was  partially  attributable  to the fact that during nine
months ended  September 30, 2000,  the  Partnership  collected and recognized as
income  approximately  $39,000 in past due rental  amounts from the guarantor of
the original tenant of the Property in Palm Bay,  Florida.  No such amounts were
collected  during the nine months ended  September 30, 2001. The original tenant
vacated the Property in October 1997. In February 1998, the Partnership  entered
into a new lease with a new  tenant  for this  Property,  who then  vacated  the
Property  in May 2000 and  discontinued  making  rental  payments.  As a result,
rental,  earned and contingent rental income decreased by approximately  $28,200
during the nine months ended September 30, 2001. The decrease to rental,  earned
and contingent rental income during the nine months ended September 30, 2001 was
partially  offset by fact  that in  conjunction  with the  tenant  vacating  the
Property  in  May  2000,  the  Partnership  reversed  approximately  $12,800  of
previously  accrued  rental  income  during the nine months ended  September 30,
2000.  The  accrued  rental  income  was  the  accumulated  amount  of  non-cash
accounting  adjustments  previously  recorded to recognize future scheduled rent
increases  as income  evenly over the term of the lease.  No such  amounts  were
reversed  during the nine months ended  September 30, 2001. In August 2001,  the
Partnership  sold this Property,  as described  above,  in "Capital  Resources."
Rental,  earned and  contingent  rental income are expected to remain at reduced
amounts as a result of distributing the net sales proceeds from the sale of this
Property, to the limited partners.

         The decrease in rental,  earned and contingent rental income during the
nine months ended  September 30, 2001,  was also  partially due to a decrease in
rental and earned  income  due to the fact that the  tenant of the  Property  in
Richmond,  Virginia,  filed for  bankruptcy and rejected the lease in June 2000.
The decrease in rental,  earned and contingent rental income for the nine months
ended  September 30, 2001 was partially  offset by the fact that in  conjunction
with the rejected  lease,  during the nine months ended  September 30, 2000, the
Partnership reversed  approximately $38,700 of previously accrued rental income.
The accrued  rental  income was the  accumulated  amount of non-cash  accounting
adjustments  previously  recorded in order to recognize  future  scheduled  rent
increases as income evenly over the term of the lease. No such  adjustments were
recorded  during the  quarter and nine  months  ended  September  30,  2001.  In
December  2000, the  Partnership  entered into a new lease with a new tenant for
this Property,  for which rental payments  commenced in March 2001. The decrease
in rental,  earned and  contingent  rental  income  during the nine months ended
September  30,  2001 was  partially  offset by an  increase in rental and earned
income as a result of the Partnership entering into this new lease.

         Rental and earned income also decreased by approximately $10,000 during
the quarter and nine months  ended  September  30, 2001 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  the  quarter  and nine  months  ended  September  30,  2001.  In
connection  therewith,  the Partnership received  approximately $67,100 in lease
termination  income in  consideration  for the Partnership  releasing the tenant
from its obligations under the lease. The Partnership re-leased this Property to
the new tenant  with terms  substantially  the same as the  Partnership's  other
leases.  Rents  due under  the new  lease  are  lower  than  rents due under the
previous lease; therefore,  the Partnership expects that rental income in future
periods will remain at reduced  amounts.  However,  the general  partners do not
anticipate  that any  decrease in rental  income  relating to the new lease will
have a  material  adverse  affect on the  Partnership's  financial  position  or
results of operations.

         During  the  nine  months  ended  September  30,  2001  and  2000,  the
Partnership owned and leased six Properties  through joint venture  arrangements
and two Properties as tenants-in-common with affiliates of the general partners.
In  connection  therewith,  during the nine months ended  September 30, 2001 and
2000, the Partnership  earned $212,610 and $210,199,  respectively,  $80,513 and
$71,069 of which was earned  during the quarters  ended  September  30, 2001 and
2000,  respectively.  The  increase  in income  earned from joint  ventures  was
partially  attributable  to an  increase  in gross  sales of certain  restaurant
Properties, the leases of which require the payment of contingent rental income.

         The  increase  in net  income  earned  from joint  ventures  during the
quarter and nine months ended  September  30, 2001 was  primarily  offset by the
fact that Titusville Joint Venture (in which the Partnership owns a 26.6 percent
interest in the profits  and losses of the joint  venture)  recorded a provision
for loss on assets of  approximately  $12,700  and  $50,900,  respectively.  The
Property owned by the joint venture became vacant during 1997.  Titusville Joint
Venture had previously  recorded a provision for loss on assets relating to this
Property.  The increase in the provision  represented the difference between the
carrying  value of the  Property at  September  30, 2001 and the net  realizable
value of the  Property.  Titusville  Joint Venture will not recognize any income
relating  to this  Property  until it locates a new tenant for this  Property or
sells the  Property  and  reinvests  the net  sales  proceeds  in an  additional
Property.  Titusville  Joint  Venture  is  currently  seeking  a new  tenant  or
purchaser for this Property.

         During  the  nine  months  ended   September  30,  2001,   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  and  earned  income
(including  the  Partnership's  share  of the  rental  and  earned  income  from
Properties  owned by joint ventures and Properties  owned with affiliates of the
general  partners as  tenants-in-common).  It is anticipated  that, based on the
minimum rental payments  required by the leases,  these lessees will continue to
contribute more than ten percent of the  Partnership's  total rental income.  In
addition,  during the nine months ended  September  30, 2001,  three  restaurant
chains, Denny's, Shoney's, and Wendy's Old Fashioned Hamburger Restaurants, each
accounted for more than ten percent of the Partnership's total rental and earned
income (including the  Partnership's  share of the rental and earned income from
Properties  owned by joint ventures and Properties  owned with affiliates of the
general  partners  as  tenants-in-common).  It is  anticipated  that these three
restaurant chains will each continue to account for more than ten percent of the
total rental and earned income to which the  Partnership  is entitled  under the
terms of the leases.  Any failure of these  lessees or these  restaurant  chains
could materially affect the Partnership's  income if the Partnership is not able
to re-lease the Properties in a timely manner.

         Operating  expenses,  including  depreciation  and  amortization,  were
$528,612  and $642,662  for the nine months  ended  September  30, 2001 and 2000
($130,024 and $175,890 of which was incurred during the quarters ended September
30, 2001 and 2000), respectively.  The decrease in operating expenses during the
quarter and nine  months  ended  September  30,  2001,  was  partially  due to a
decrease in depreciation  expense due to the fact that the Partnership sold four
and two  Properties  in 2000 and 2001,  respectively.  The decrease in operating
expenses during the nine months ended September 30, 2001, was also partially due
to the  fact  that  during  the  nine  months  ended  September  30,  2000,  the
Partnership  incurred  $61,442  in  transaction  costs  related  to the  general
partners retaining financial and legal advisors to assist them in evaluating and
negotiating the proposed merger with CNL American Properties Fund, Inc. ("APF").
On March 1, 2000, the general  partners and APF mutually agreed to terminate the
merger.  No such expenses were incurred during the quarter and nine months ended
September 30, 2001.

         The decrease in operating  expenses  during the quarter and nine months
ended  September  30,  2001 was  also due to a  decrease  in real  estate  taxes
relating to the Properties in Topeka,  Kansas and Palm Bay,  Florida,  for which
the tenant  defaulted  under the terms of its lease  agreements.  The Properties
were sold in  November  2000 and August  2001,  respectively.  The  decrease  in
operating expenses was also due to a decrease in amortization expense due to the
Partnership  expensing the balance of unamortized  lease costs,  during the nine
months ended September 30, 2000, relating to the Partnership's  Property in Palm
Bay,  Florida,  for  which  the  tenant  defaulted  under the terms of its lease
agreement.

         The  decrease  in  operating  expenses  during  the nine  months  ended
September 30, 2001 was partially offset by an increase in the costs incurred for
administrative  expenses for servicing the Partnership  and its  Properties,  as
permitted by the Partnership  agreement.  In addition, the decrease in operating
expenses  was  partially  offset  by the  fact  that  the  Partnership  incurred
additional  state  taxes due to  changes  in tax laws of two states in which the
Partnership conducts business.

         As a result of the sale of the Property in Corpus  Christi,  Texas,  as
described above in "Capital  Resources",  the  Partnership  recognized a loss of
approximately  $93,800 for financial  reporting  purposes during the nine months
ended September 30, 2001.

         During the nine  months  ended  September  30,  2000,  the  Partnership
recorded a provision  for loss on assets of  $387,612  for  financial  reporting
purposes  relating  to the  Property  in Palm Bay,  Florida.  The tenant of this
Property vacated the Property and discontinued payment of rents. During the nine
months  ended  September  30,  2001,  the  Partnership  recorded  an  additional
provision for loss of $178,817.  The increase in the provision  represented  the
difference  between the carrying value of the Property at June 30, 2001, and the
estimated net realizable value of the Property based on a sales contract with an
unrelated  third party.  As a result of the sale of the  Property,  as described
above in "Capital Resources," the Partnership recognized a loss of approximately
$27,100  for  financial  reporting  purposes  during the quarter and nine months
ended September 30, 2001.

         As a result of the sale of the  Properties in Temple  Terrace and Punta
Gorda, Florida, during the quarter and nine months ended September 30, 2000, the
Partnership  recognized a gain of approximately $582,100 for financial reporting
purposes.  During the nine months ended September 30, 2000, the Partnership sold
a Property in Detroit,  Michigan and recognized a gain of approximately $552,600
for financial reporting purposes.


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.)

               (b)   Reports on Form 8-K

                     No reports on Form 8-K were filed during the quarter  ended
                     September 30, 2001.




<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 8th day of November, 2001.


                                           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)