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, 1999
   --------------------------------------------------------------------------

                                       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)

<TABLE>
<CAPTION>

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


                400 East South Street
                  Orlando, Florida                                                       32801
------------------------------------------------------              ------------------------------------------------
      (Address of principal executive offices)                                        (Zip Code)


Registrant's telephone number
(including area code)                                                               (407) 650-1000
                                                                    ------------------------------------------------
</TABLE>


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

                      Condensed Statements of Income

                      Condensed Statements of Partners' Capital

                      Condensed Statements of Cash Flows

                      Notes to Condensed Financial Statements

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

     Item 3.      Quantitative and Qualitative Disclosures About
                      Market Risk

Part II.

     Other Information






<PAGE>


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


                                                                               June 30,               December 31,
                                                                                 1999                     1998
                                                                          -------------------      -------------------
<S> <C>
                               ASSETS

   Land and buildings on operating leases, less
       accumulated depreciation of $3,947,353 and
       $3,744,609, respectively                                                 $ 15,283,715             $ 15,486,459
   Net investment in direct financing leases                                       1,211,023                1,231,482
   Investment in joint ventures                                                    3,354,395                2,862,906
   Cash and cash equivalents                                                         651,282                  739,382
   Restricted cash                                                                        --                  537,274
   Receivables, less allowance for doubtful accounts
       of $250,622 and $258,641, respectively                                         69,583                   24,676
   Prepaid expenses                                                                   13,317                    9,836
   Lease costs, less accumulated amortization of
       $23,710 and $21,450, respectively                                              31,434                   18,094
   Accrued rental income                                                             290,049                  279,724
                                                                          -------------------      -------------------

                                                                                $ 20,904,798             $ 21,189,833
                                                                          ===================      ===================

                  LIABILITIES AND PARTNERS' CAPITAL

   Accounts payable                                                               $   85,694               $    4,503
   Accrued and escrowed real estate taxes payable                                     43,826                   36,732
   Distributions payable                                                             600,000                  600,000
   Due to related party                                                              160,865                  148,978
   Rents paid in advance and deposits                                                 52,445                   59,620
                                                                          -------------------      -------------------
       Total liabilities                                                             942,830                  849,833

   Commitments and Contingencies (Note 3)

   Partners' capital                                                              19,961,968               20,340,000
                                                                          -------------------      -------------------

                                                                                $ 20,904,798             $ 21,189,833
                                                                          ===================      ===================

</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,
                                                             1999            1998              1999              1998
                                                          ------------    ------------     --------------     -------------
<S> <C>
Revenues:
    Rental income from operating leases                     $ 496,860       $ 511,225          $ 993,393       $1,051,001
    Earned income from direct financing leases                 30,864          31,872             61,990           63,981
    Contingent rental income                                   26,131          15,546             34,374           37,207
    Interest and other income                                   7,051           8,347             16,969           21,192
                                                          ------------    ------------     --------------     -------------
                                                              560,906         566,990          1,106,726        1,173,381
                                                          ------------    ------------     --------------     -------------

Expenses:
    General operating and administrative                       31,152          41,090             71,590           75,715
    Professional services                                      11,364          26,397             21,364           32,645
    Real estate taxes                                           8,576              --             13,855           20,755
    State and other taxes                                          --             106             15,395           15,747
    Depreciation and amortization                             102,473         107,626            205,004          222,777
    Transaction costs                                          71,148              --            104,166               --
                                                          ------------    ------------     --------------     -------------
                                                              224,713         175,219            431,374          367,639
                                                          ------------    ------------     --------------     -------------

Income Before Equity in Earnings (Loss) of
    Joint Ventures, Gain on Sale of Land and
    Buildings and Provision for Loss on Land
    and Building                                              336,193         391,771            675,352          805,742

Equity in Earnings (Loss) of Joint Ventures                    72,942        (191,062 )          146,616         (148,888  )

Gain on Sale of Land and Buildings                                 --              --                 --          120,915

Provision for Loss on Land and Building                            --         (65,172 )               --          (65,172  )
                                                          ------------    ------------     --------------     -------------

Net Income                                                  $ 409,135       $ 135,537          $ 821,968        $ 712,597
                                                          ============    ============     ==============     =============

Allocation of Net Income:
    General partners                                          $ 4,091         $   (66 )         $  8,220         $  2,417
    Limited partners                                          405,044         135,603            813,748          710,180
                                                          ------------    ------------     --------------     -------------

                                                            $ 409,135       $ 135,537          $ 821,968        $ 712,597
                                                          ============    ============     ==============     =============

Net Income Per Limited Partner Unit                           $  6.75         $  2.26           $  13.56         $  11.84
                                                          ============    ============     ==============     =============

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,
                                                                              1999                      1998
                                                                     -----------------------    ----------------------
<S> <C>
General partners:
    Beginning balance                                                          $  769,078                $  756,354
    Net income                                                                      8,220                    12,724
                                                                        ------------------        ------------------
                                                                                  777,298                   769,078
                                                                        ------------------        ------------------

Limited partners:
    Beginning balance                                                          19,570,922                21,395,945
    Net income                                                                    813,748                 1,808,725
    Distributions ($20.00 and $60.56 per
       limited partner unit, respectively)                                     (1,200,000 )              (3,633,748 )
                                                                        ------------------        ------------------
                                                                               19,184,670                19,570,922
                                                                        ------------------        ------------------

Total partners' capital                                                       $19,961,968               $20,340,000
                                                                        ==================        ==================
</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,
                                                                                    1999               1998
                                                                               ---------------    ----------------
<S> <C>
Increase (Decrease) in Cash and Cash Equivalents

    Net Cash Provided by Operating Activities                                      $1,127,102          $1,154,124
                                                                               ---------------    ----------------

    Cash Flows from Investing Activities:
       Additions to land and buildings on operating
          leases                                                                           --            (275,000 )
       Proceeds from sale of land and buildings                                            --           1,468,825
       Investment in joint venture                                                   (533,200 )                --
       Decrease in restricted cash                                                    533,598                  --
       Payment of lease costs                                                         (15,600 )                --
                                                                               ---------------    ----------------
              Net cash provided by (used in) investing
                  activities                                                          (15,202 )         1,193,825
                                                                               ---------------    ----------------

    Cash Flows from Financing Activities:
       Distributions to limited partners                                           (1,200,000 )        (2,523,748 )
                                                                               ---------------    ----------------
              Net cash used in financing activities                                (1,200,000 )        (2,523,748 )
                                                                               ---------------    ----------------

Net Decrease in Cash and Cash Equivalents                                             (88,100 )          (175,799 )

Cash and Cash Equivalents at Beginning of Period                                      739,382             876,452
                                                                               ---------------    ----------------

Cash and Cash Equivalents at End of Period                                          $ 651,282           $ 700,653
                                                                               ===============    ================

Supplemental Schedule of Non-Cash Investing and
    Financing Activities:

       Deferred real estate disposition fees incurred
          and unpaid at end of period                                                  $   --           $  45,663
                                                                               ===============    ================

       Distributions declared and unpaid at end
          of period                                                                 $ 600,000           $ 600,000
                                                                               ===============    ================

</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, 1999 and 1998


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, 1999, may not be indicative of
        the results that may be expected for the year ending  December 31, 1999.
        Amounts as of December 31, 1998,  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,
        1998.

2.   Investment in Joint Ventures:

        In January  1999,  the  Partnership  invested  $533,200 in a property in
        Zephyrhills,  Florida as  tenants-in-common  with CNL Income  Fund XVII,
        Ltd.,  an affiliate of the general  partners.  As of June 30, 1999,  the
        Partnership had a 76 percent  interest in the property.  The Partnership
        accounts for its  investment  in this  property  using the equity method
        since the  Partnership  shares  control with an  affiliate,  and amounts
        relating to its investment are included in investment in joint ventures.


<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 1999 and 1998


2.     Investment in Joint Ventures - Continued:

        The following presents the combined, condensed financial information for
        all of the  Partnership's  investment in joint  ventures and  properties
        held as tenants-in-common at:
<TABLE>
<CAPTION>

                                                                           June 30,               December 31,
                                                                             1999                     1998
                                                                      --------------------     --------------------
<S> <C>
                  Land and buildings on operating
                      leases, less accumulated
                      depreciation and allowance for
                      loss on land and building                             $ 5,288,090             $ 4,406,943
                  Net investment in direct financing
                      leases, less allowance for
                      impairment in carrying value                              377,724                 626,594
                  Cash                                                           23,087                  14,025
                  Receivables                                                     5,334                  10,943
                  Accrued rental income                                         166,304                 163,773
                  Other assets                                                    2,924                   2,513
                  Liabilities                                                    48,357                  27,211
                  Partners' capital                                           5,815,106               5,197,580
                  Revenues                                                      305,224                 368,058
                  Provision for loss on land and
                      buildings and net investment in
                      direct financing lease                                         --                (441,364 )
                  Net income (loss)                                             222,901                (212,388 )
</TABLE>

        The Partnership  recognized income totaling $146,616 and a loss totaling
        $148,888 for the six months ended June 30, 1999 and 1998,  respectively,
        of which income of $72,942 and a loss of $191,062  were  recognized  for
        the  quarters  ended June 30,  1999 and 1998,  respectively,  from these
        joint ventures.



<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 1999 and 1998


3.   Commitments and Contingencies:

       On March 11, 1999, the Partnership  entered into an Agreement and Plan of
       Merger with CNL American Properties Fund, Inc. ("APF"), pursuant to which
       the  Partnership  would be merged with and into a subsidiary  of APF (the
       "Merger").  As  consideration  for the  Merger,  APF has  agreed to issue
       1,334,008 shares of its common stock, par value $0.01 per share (the "APF
       Shares")  which,  for the  purposes of valuing the merger  consideration,
       have been  valued by APF at $20.00 per APF  Share,  the price paid by APF
       investors  (after an  adjustment  for a one for two  reverse  stock split
       effective  June 3, 1999) in three  previous  public  offerings,  the most
       recent of which was  completed in December  1998.  In order to assist the
       general  partners in evaluating the proposed  merger  consideration,  the
       general partners retained Valuation  Associates,  a nationally recognized
       real estate  appraisal  firm,  to appraise the  Partnership's  restaurant
       property  portfolio.   Based  on  Valuation  Associates'  appraisal,  the
       Partnership's  property portfolio and other assets were valued on a going
       concern  basis   (meaning  the   Partnership   continues   unchanged)  at
       $26,259,630  as of December 31,  1998.  The APF Shares are expected to be
       listed for trading on the New York Stock Exchange  concurrently  with the
       consummation  of the Merger,  and therefore,  would be freely tradable at
       the option of the former limited  partners.  At a special  meeting of the
       partners  that is  expected  to be held in the  fourth  quarter  of 1999,
       limited  partners   holding  in  excess  of  50%  of  the   Partnership's
       outstanding limited  partnership  interests must approve the Merger prior
       to  consummation  of the  transaction.  If the  limited  partners  at the
       special meeting approve the Merger, APF will own the properties and other
       assets of the Partnership.  The general partners intend to recommend that
       the limited partners of the Partnership approve the Merger. In connection
       with their recommendation,  the general partners will solicit the consent
       of the limited partners at the special  meeting.  If the limited partners
       reject  the  Merger,  the  Partnership  will  bear  the  portion  of  the
       transaction  costs  based  upon the  percentage  of "For"  votes  and the
       general  partners will bear the portion of such  transaction  costs based
       upon the percentage of "Against" votes and abstentions.

        On May 11,  1999,  four  limited  partners  in several of the CNL Income
        Funds  served  a  lawsuit  against  the  general  partners  and  APF  in
        connection  with the proposed  Merger.  On July 8, 1999,  the plaintiffs
        amended  the  complaint  to add three  additional  limited  partners  as
        plaintiffs. Additionally, on June 22, 1999, a limited partner in certain
        of the CNL Income Funds served a lawsuit  against the general  partners,
        APF,  and CNL Fund  Advisors,  Inc and  certain  of its  affiliates,  in
        connection  with the  proposed  Merger.  The  general  partners  and APF
        believe  that the  lawsuits  are  without  merit  and  intend  to defend
        vigorously against the claims. See Part II - Item 1. Legal Proceedings.



<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 June 30,
1999,  the  Partnership  owned 38 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

         During the six months  ended June 30,  1999 and 1998,  the  Partnership
generated  cash from  operations  (which  includes  cash  received from tenants,
distributions from joint ventures, and interest and other income received,  less
cash paid for expenses) of $1,127,102 and $1,154,124, respectively. The decrease
in cash from  operations  for the six months  ended June 30, 1999 is primarily a
result of changes in the Partnership's working capital.

         Other sources and uses of capital included the following during the six
months ended June 30, 1999.

         In  January  1999,  the  Partnership  used  $533,200  of the net  sales
proceeds  from the 1998 sale of the  Property  in  Naples,  Florida to acquire a
Property in  Zephyrhills,  Florida,  as  tenants-in-common  with CNL Income Fund
XVII, Ltd., an affiliate of the general partners. In connection  therewith,  the
Partnership and the affiliate entered into an agreement whereby each co-venturer
will  share in the  profits  and losses of the  Property  in  proportion  to its
applicable  percentage interest. As of June 30, 1999, the Partnership owned a 76
percent  interest  in the  Property  in  Zephyrhills,  Florida.  The sale of the
Property in Naples,  Florida and the  reinvestment  of the net sales proceeds in
the Property in Zephyrhills,  Florida, were structured to qualify as a like-kind
exchange transaction for federal income tax purposes.

         Currently,  rental  income from the  Partnership's  Properties  and net
sales proceeds from the sale of Properties,  pending  reinvestment in additional
Properties,  are invested in money market accounts or other  short-term,  highly
liquid  investments  such  as  demand  deposit  accounts  at  commercial  banks,
certificates  of  deposit,  and money  market  accounts  with less than a 30-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,  1999,  the
Partnership had $651,282 invested in such short-term investments, as compared to
$739,382 at December 31, 1998. The funds remaining at June 30, 1999 will be used
to pay distributions and other liabilities.

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 that
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, 1998,  net sales  proceeds from the sale of the Properties
in Fort Myers,  Florida  and Union  Township,  Ohio,  the  Partnership  declared
distributions  to limited  partners of  $1,200,000  and  $2,433,748  for the six
months  ended June 30,  1999 and 1998,  respectively  ($600,000  for each of the
quarters ended June 30, 1999 and 1998). This represents  distributions of $20.00
and  $40.56  per  unit  for the  six  months  ended  June  30,  1999  and  1998,
respectively  ($10.00 per unit for each of the quarters  ended June 30, 1999 and
1998).  Distributions for the six months ended June 30, 1998 included $1,233,748
as a result of the  distribution of net sales proceeds from the 1998 sale of the
Properties in Ft. Myers, Florida and Union Township, Ohio. No distributions were
made to the general partners for the quarters and six months ended June 30, 1999
and 1998.  No amounts  distributed  to the limited  partners  for the six months
ended  June 30,  1999 and 1998 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  $942,830 at June 30, 1999 from  $849,833  at December  31,  1998,
primarily as a result of the Partnership  accruing transaction costs relating to
the  proposed  Merger  with CNL  American  Properties  Fund,  Inc.  ("APF"),  as
described below.  Total  liabilities at June 30, 1999, to the extent they exceed
cash and cash  equivalents at June 30, 1999,  will be paid from future cash from
operations,  and in the  event the  general  partners  elect to make  additional
contributions, from general partners' contributions.

Long-Term Liquidity

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

Results of Operations

         During the six months ended June 30, 1998,  the  Partnership  owned and
leased 34 wholly owned Properties (which included two Properties, one in each of
Union Township, Ohio and Fort Myers, Florida, which were sold in March 1998) and
during the six months ended June 30, 1999, the  Partnership  owned and leased 30
wholly owned  Properties,  generally to operators of fast-food and  family-style
restaurant  chains.  During the six months  ended  June 30,  1999 and 1998,  the
Partnership  earned  $1,055,383 and $1,114,982,  respectively,  in rental income
from operating  leases and earned income from the direct  financing  leases from
these Properties,  $527,724 and $543,097 of which was earned during the quarters
ended June 30, 1999 and 1998,  respectively.  The  decrease in rental and earned
income for the quarter and six months ended June 30, 1999 was  primarily  due to
the sale of the Properties in Fort Myers,  Florida and Union  Township,  Ohio in
March 1998, and the sale of the Property in Naples,  Florida in September  1998.
During the six months ended June 30, 1999,  the  Partnership  used the net sales
proceeds from the sale of the Property in Naples,  Florida to acquire a Property
in Zephyrhills,  Florida, as tenants-in-common  with CNL Income Fund XVII, Ltd.,
an affiliate of the general  partners.  Rental and earned income are expected to
remain at reduced  amounts as a result of  distributing  the net sales  proceeds
from the 1998 sales of the Properties in Fort Myers, Florida and Union Township,
Ohio to the limited partners.

         In October  1998,  the tenant of one Boston Market  Property  filed for
bankruptcy.  As of July 31, 1999, the Partnership had continued receiving rental
payments  relating to this lease.  While the tenant has not rejected or affirmed
the lease,  there can be no assurance that the lease will not be rejected in the
future.  The lost revenues resulting from the rejection of this lease could have
an  adverse  effect on the  results  of  operations  of the  Partnership  if the
Partnership is not able to re-lease this Property in a timely manner.

         During the six months ended June 30, 1998, the  Partnership  also owned
and leased five Properties indirectly through joint venture arrangements and one
Property as  tenants-in-common  with affiliates of the general partners.  During
the six  months  ended  June 30,  1999,  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 six months ended June 30, 1999 and 1998, the  Partnership
recognized  income of $146,616  and a loss of $148,888,  respectively,  of which
income of $72,942 and a loss of $191,062 were  recognized for the quarters ended
June 30, 1999 and 1998, respectively. The increase in net income earned by joint
ventures is primarily due to the fact that  Kingsville Real Estate Joint Venture
(in which the  Partnership  owns a 68.87%  interest in the profits and losses of
the  joint  venture)   established   an  allowance  for  doubtful   accounts  of
approximately  $50,800 and $65,900  during the quarter and six months ended June
30, 1998,  respectively,  in  accordance  with its  collection  policy.  No such
allowance was established during the quarter and six months ended June 30, 1999.
In addition,  during the quarter and six months ended June 30, 1998,  Kingsville
Real Estate  Joint  Venture  established  a  provision  for loss on land and net
investment in the direct  financing lease for its Property in Kingsville,  Texas
for approximately $316,000. The allowance represented the difference between the
Property's  carrying  value at June 30, 1998 and the  estimated  net  realizable
value of the  Property.  In January 1999,  Kingsville  Real Estate Joint Venture
entered  into a new lease for this  Property  with a new tenant and the  general
partners ceased collection efforts on the past due amounts.  The increase in net
income for the quarter and six months ended June 30, 1999 is also  partially due
to the fact that in September 1998 the Partnership reinvested net sales proceeds
from the 1998 sale of its Property in Leesburg, Florida in Warren Joint Venture.
In addition,  the increase  was also due to the fact that in January  1999,  the
Partnership  reinvested net sales proceeds from the 1998 sale of its Property in
Naples, Florida in a Property in Zephyrhills, Florida, as tenants-in-common with
an affiliate of the general partners.

         Operating  expenses,  including  depreciation  and  amortization,  were
$431,374  and  $367,639  for the six  months  ended  June  30,  1999  and  1998,
respectively,  of which  $224,713  and $175,219  were  incurred for the quarters
ended June 30, 1999 and 1998,  respectively.  The increase in operating expenses
for the quarter and six months ended June 30,  1999,  as compared to the quarter
and six  months  ended June 30,  1998,  was  primarily  due to the fact that the
Partnership  incurred  $71,148 and $104,166 for the quarter and six months ended
June 30,  1999,  respectively,  in  transaction  costs  related  to the  general
partners retaining financial and legal advisors to assist them in evaluating and
negotiating  the proposed  Merger with APF, as described  below.  If the limited
partners  reject  the  Merger,  the  Partnership  will bear the  portion  of the
transaction  costs  based upon the  percentage  of "For"  votes and the  general
partners  will  bear  the  portion  of such  transaction  costs  based  upon the
percentage  of  "Against"  votes and  abstentions.  The  increase  in  operating
expenses for the quarter and six months ended June 30, 1999,  as compared to the
quarter and six months ended June 30, 1998,  was partially  offset by a decrease
in depreciation expense which resulted from the sale of four Properties in 1998.

         During the quarter and six months ended June 30, 1998, the  Partnership
recorded a provision  for loss on land and building in the amount of $65,172 for
financial  reporting  purposes  for  the  Property  in  Leesburg,  Florida.  The
allowance at June 30, 1998,  represented  the difference  between the Property's
carrying  value at June 30, 1998 and the net  realizable  value of the  Property
based on the net  sales  proceeds  received  in July  1998  from the sale of the
Property.  No such  provision  was recorded for the quarter and six months ended
June 30, 1999.

         As a result of the sales of the  Properties in Fort Myers,  Florida and
Union Township,  Ohio, the  Partnership  recognized a total gain of $120,915 for
financial  reporting  purposes  during the six months  ended June 30,  1998.  No
Properties were sold during the six months ended June 30, 1999.

Proposed Merger

         On March 11, 1999, the  Partnership  entered into an Agreement and Plan
of Merger with APF,  pursuant to which the Partnership  would be merged with and
into a subsidiary of APF (the "Merger").  As consideration  for the Merger,  APF
has agreed to issue  1,334,008  shares of its common stock,  par value $0.01 per
share  (the  "APF  Shares")  which,  for the  purposes  of  valuing  the  merger
consideration,  have been valued by APF at $20.00 per APF Share,  the price paid
by APF  investors  (after an  adjustment  for a one for two reverse  stock split
which became  effective June 3, 1999) in three previous  public  offerings,  the
most  recent of which was  completed  in December  1998.  In order to assist the
general  partners in evaluating the proposed merger  consideration,  the general
partners  retained  Valuation  Associates,  a nationally  recognized real estate
appraisal firm, to appraise the  Partnership's  restaurant  property  portfolio.
Based on Valuation Associates'  appraisal,  the Partnership's property portfolio
and other assets were valued on a going concern basis  (meaning the  Partnership
continues  unchanged) at $26,259,630 as of December 31, 1998. The APF Shares are
expected  to be listed for trading on the New York Stock  Exchange  concurrently
with the consummation of the Merger, and therefore,  would be freely tradable at
the option of the former limited partners.  At a special meeting of the partners
that is  expected  to be held in the fourth  quarter of 1999,  limited  partners
holding in excess of 50% of the Partnership's  outstanding  limited  partnership
interests must approve the Merger prior to consummation of the  transaction.  If
the limited partners at the special meeting approve the Merger, APF will own the
Properties and other assets of the  Partnership.  The general partners intend to
recommend that the limited  partners of the Partnership  approve the Merger.  In
connection  with their  recommendation,  the general  partners  will solicit the
consent of the limited partners at the special meeting.  If the limited partners
reject the Merger,  the  Partnership  will bear the  portion of the  transaction
costs based upon the  percentage  of "For" votes and the general  partners  will
bear  the  portion  of such  transaction  costs  based  upon the  percentage  of
"Against" votes and abstentions.

         On May 11,  1999,  four  limited  partners in several of the CNL Income
Funds served a lawsuit  against the general  partners and APF in connection with
the proposed  Merger.  On July 8, 1999, the plaintiffs  amended the complaint to
add three additional limited partners as plaintiffs.  Additionally,  on June 22,
1999,  a limited  partner in certain  of the CNL Income  Funds  served a lawsuit
against the general partners, APF and CNL Fund Advisors, Inc. and certain of its
affiliates in connection with the proposed Merger.  The general partners and APF
believe  that the  lawsuits  are without  merit and intend to defend  vigorously
against the claims. See Part II - Item 1. Legal Proceedings.

Year 2000 Readiness Disclosure

         The Year  2000  problem  concerns  the  inability  of  information  and
non-information  technology  systems to  properly  recognize  and  process  date
sensitive  information  beyond  January  1,  2000.  As  of  June  30,  1999  the
Partnership did not have any information or non-information  technology systems.
The general  partners  and  certain of the  affiliates  of the general  partners
provide  all  services  requiring  the use of  information  and  non-information
technology systems pursuant to a management agreement with the Partnership.  The
information technology system of the affiliates of the general partners consists
of a network of personal computers and servers built using hardware and software
from  mainstream  suppliers.  The  non-information  technology  systems  of  the
affiliates of the general  partners are primarily  facility  related and include
building  security  systems,  elevators,  fire  suppressions,  HVAC,  electrical
systems and other  utilities.  The  affiliates  of the general  partners have no
internally generated programmed software coding to correct because substantially
all of the software utilized by the general partners and affiliates is purchased
or  licensed  from  external  providers.   The  maintenance  of  non-information
technology systems at the Partnership's  Properties is the responsibility of the
tenants of the  Properties  in  accordance  with the terms of the  Partnership's
leases.

         In early 1998, the general  partners and affiliates  formed a Year 2000
team, for the purpose of identifying,  understanding  and addressing the various
issues  associated  with the Year 2000  problem.  The Y2K Team  consists  of the
general  partners  and members  from  certain of the  affiliates  of the general
partners, including representatives from senior management, information systems,
telecommunications,   legal,   office   management,   accounting   and  property
management. The Y2K Team's initial step in assessing the Partnership's Year 2000
readiness  consists of  identifying  any systems  that are  date-sensitive  and,
accordingly,  could have potential  Year 2000  problems.  The Y2K Team is in the
process of conducting inspections, interviews and tests to identify which of the
Partnership's systems could have a potential Year 2000 problem.

         The  information  system of the  affiliates of the general  partners is
comprised of hardware  and  software  applications  from  mainstream  suppliers.
Accordingly, the Y2K Team is in the process of contacting the respective vendors
and  manufacturers  to verify the Year 2000  compliance  of their  products.  In
addition,  the Y2K Team has also requested and is evaluating  documentation from
other   companies  with  which  the  Partnership  has  a  material  third  party
relationship,   including  the   Partnership's   tenants,   vendors,   financial
institutions and the  Partnership's  transfer agent. The Partnership  depends on
its  tenants  for  rents  and  cash  flows,   its  financial   institutions  for
availability  of cash and its  transfer  agent to  maintain  and track  investor
information.  The Y2K Team has also  requested and is  evaluating  documentation
from the  non-information  technology systems providers of the affiliates of the
general  partners.  Although the general  partners  continue to receive positive
responses  from the  companies  with  which  the  Partnership  has  third  party
relationships regarding their Year 2000 compliance,  the general partners cannot
be assured that the  tenants,  financial  institutions,  transfer  agent,  other
vendors and system  providers have adequately  considered the impact of the Year
2000. The general  partners are not able to measure the effect on the operations
of the Partnership of any third party's failure to adequately address the impact
of the Year 2000.

         The general  partners and their  affiliates  have  identified  and have
implemented  upgrades for certain hardware equipment.  In addition,  the general
partners and their  affiliates have  identified  certain  software  applications
which will require upgrades to become Year 2000 compliant.  The general partners
expect  that all of these  upgrades,  as well as any  other  necessary  remedial
measures on the information  technology systems used in the business  activities
and  operations  of the  Partnership,  to be completed  by  September  30, 1999,
although,  the general  partners  cannot be assured  that the upgrade  solutions
provided by the vendors  have  addressed  all  possible  Year 2000  issues.  The
general  partners  do not expect the  aggregate  cost of the Year 2000  remedial
measures to be material to the results of operations of the Partnership.

         The general partners and their  affiliates have received  certification
from the  Partnership's  transfer agent of its Year 2000 compliance.  Due to the
material  relationship of the Partnership  with its transfer agent, the Y2K Team
is evaluating the Year 2000  compliance of the systems of the transfer agent and
expects to have the  evaluation  completed  by September  30, 1999.  Despite the
positive  response  from the transfer  agent and the  evaluation of the transfer
agent's system by the Y2K Team, the general  partners cannot be assured that the
transfer  agent has addressed  all possible Year 2000 issues.  In the event that
the  systems of the  transfer  agent are not Year 2000  compliant,  the  general
partners and their  affiliates  will have to allocate  resources  to  internally
perform  the  functions  of the  transfer  agent.  The  general  partners do not
anticipate  that the additional  cost of these  resources  would have a material
impact on the Partnership.

         Based upon the progress the general  partners and their affiliates have
made in addressing  the Year 2000 issues and their plan and timeline to complete
the compliance  program,  the general partners do not foresee  significant risks
associated  with Year 2000  compliance  at this time.  The general  partners and
their affiliates plan to address their significant Year 2000 issues prior to the
Partnership  being  affected  by  them;  therefore,  we  have  not  developed  a
comprehensive  contingency  plan.  However,  if the general  partners  and their
affiliates identify significant risks related to their Year 2000 compliance,  or
if their progress deviates from the anticipated  timeline,  the general partners
and their affiliates will develop  contingency plans as deemed necessary at that
time.


ITEM 3.           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Not applicable.



<PAGE>


                           PART II. OTHER INFORMATION



Item 1.       Legal Proceedings.

              On May 11, 1999, four limited partners in several CNL Income Funds
              served a derivative and purported class action lawsuit filed April
              22, 1999 against the general partners and APF in the Circuit Court
              of the Ninth Judicial Circuit of Orange County, Florida,  alleging
              that the general  partners  breached  their  fiduciary  duties and
              violated  provisions of certain of the CNL Income Fund partnership
              agreements in connection with the proposed Merger.  The plaintiffs
              are seeking  unspecified  damages and equitable relief. On July 8,
              1999, the plaintiffs filed an amended complaint which, in addition
              to naming three  additional  plaintiffs,  includes  allegations of
              aiding and abetting and  conspiring  to breach  fiduciary  duties,
              negligence and breach of duty of good faith against certain of the
              defendants and seeks additional  equitable relief. As amended, the
              caption  of the  case is Jon  Hale,  Mary J.  Hewitt,  Charles  A.
              Hewitt,  Gretchen  M.  Hewitt  Bernard J.  Schulte,  Edward M. and
              Margaret  Berol Trust,  and Vicky Berol v. James M.  Seneff,  Jr.,
              Robert  A.  Bourne,  CNL  Realty  Corporation,  and  CNL  American
              Properties Fund, Inc., Case No. CIO-99-0003561.

              On June 22,  1999,  a limited  partner of several CNL Income Funds
              served a  purported  class  action  lawsuit  filed  April 29, 1999
              against the general partners and APF, Ira Gaines, individually and
              on  behalf  of a class  of  persons  similarly  situated,  v.  CNL
              American  Properties Fund,  Inc., James M. Seneff,  Jr., Robert A.
              Bourne,  CNL Realty  Corporation,  CNL Fund  Advisors,  Inc.,  CNL
              Financial  Corporation  a/k/a CNL Financial  Corp.,  CNL Financial
              Services,  Inc. and CNL Group, Inc., Case NO. CIO-99-3796,  in the
              Circuit  Court of the Ninth  Judicial  Circuit  of Orange  County,
              Florida,   alleging  that  the  general  partners  breached  their
              fiduciary  duties and that APF aided and abetted  their  breach of
              fiduciary  duties in  connection  with the  proposed  Merger.  The
              plaintiff is seeking unspecified damages and equitable relief.

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

                      2.1      Agreement  and Plan of Merger by and  between the
                               Registrant and CNL American Properties Fund, Inc.
                               ("APF")  dated March 11, 1999 and as amended June
                               4, 1999  (Filed as  Appendix B to the  Prospectus
                               Supplement  for the  Registrant,  constituting  a
                               part  of  Amendment  No.  1 to  the  Registration
                               Statement of APF on Form S-4, File No. 74329.)


<PAGE>



                      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.)

                      27       Financial Data Schedule (Filed herewith.)

               (b)  Reports on Form 10-K

                      No reports on Form 8-K were filed during the quarter ended
                      June 30, 1999.


<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 10th day of August, 1999.


                       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)