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 March 31, 1998
                            ------------------------

                                       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            (I.R.S. Employer
of incorporation or organiza-           Identification No.)
tion)


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


Registrant's telephone number
(including area code)                       (407) 422-1574

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




Part I                                                          Page

  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                              8-11


Part II

  Other Information                                             12


<PAGE>



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


                                                 March 31,       December 31,
               ASSETS                              1998              1997
                                                -----------      --------

Land and  buildings on operating
  leases, less accumulated depreciation
  of $3,642,008 and $3,844,432 and
  allowance for loss on land and building
  of $70,337 for 1998 and 1997                  $16,734,945     $18,097,997
Net investment in direct
  financing leases                                1,260,273       1,269,389
Investment in joint ventures                      2,689,707       2,708,012
Cash and cash equivalents                         1,966,361         876,452
Receivables, less allowance for
  doubtful accounts of $304,086
  and $295,580                                       49,011          37,669
Prepaid expenses                                      5,215          11,115
Lease costs, less accumulated
  amortization of $18,968 and
  $17,956                                            20,576          21,588
Accrued rental income                               269,755         287,466
Other assets                                            200             200
                                                -----------     -----------

                                                $22,996,043     $23,309,888
                                                ===========     ===========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                $     8,287     $     8,576
Accrued construction costs payable                       -          250,000
Accrued and escrowed real estate
  taxes payable                                      46,904          65,176
Distributions payable                             1,833,748         690,000
Due to related parties                              146,002          93,854
Rents paid in advance and deposits                   65,491          49,983
                                                -----------     -----------
    Total liabilities                             2,100,432       1,157,589

Partners' capital                                20,895,611      22,152,299
                                                -----------     -----------

                                                $22,996,043     $23,309,888
                                                ===========     ===========


            See accompanying notes to condensed financial statements.

                                        1

<PAGE>



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


                                                      Quarter Ended
                                                         March 31,
                                                 1998              1997
                                               --------          ---------

Revenues:
  Rental income from operating leases          $539,776          $548,252
  Earned income from direct financing
    leases                                       32,109            32,996
  Contingent rental income                       21,661            23,943
  Interest and other income                      12,845             6,607
                                               --------          --------
                                                606,391           611,798
                                               --------          --------

Expenses:
  General operating and administrative           34,625            42,915
  Professional services                           6,248             5,226
  Real estate taxes                              20,755            23,670
  State and other taxes                          15,641            16,317
  Depreciation and amortization                 115,151           113,231
                                               --------          --------
                                                192,420           201,359
                                               --------          --------

Income Before Equity in Earnings of
  Joint Ventures and Gain on Sale of
  Land and Buildings                            413,971           410,439

Equity in Earnings of Joint Ventures             42,174            55,209

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

Net Income                                     $577,060          $465,648
                                               ========          ========

Allocation of Net Income:
  General partners                             $  2,483          $  4,656
  Limited partners                              574,577           460,992
                                               --------          --------

                                               $577,060          $465,648
                                               ========          ========

Net Income Per Limited Partner Unit            $   9.58          $   7.68
                                               ========          ========

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



            See accompanying notes to condensed financial statements.

                                        2

<PAGE>



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


                                        Quarter Ended          Year Ended
                                          March 31,           December 31,
                                            1998                  1997
                                        -------------         ------------

General partners:
  Beginning balance                    $   756,354           $   446,657
  Contribution                                  -                294,000
  Net income                                 2,483                15,697
                                       -----------           -----------
                                           758,837               756,354
                                       -----------           -----------


Limited partners:
  Beginning balance                     21,395,945            22,450,974
  Net income                               574,577             1,704,971
  Distributions ($30.56 and
    $46.00 per limited
    partner unit, respectively)         (1,833,748)           (2,760,000)
                                       -----------           -----------
                                        20,136,774            21,395,945
                                       -----------           -----------

Total partners' capital                $20,895,611           $22,152,299
                                       ===========           ===========




            See accompanying notes to condensed financial statements.

                                        3

<PAGE>



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


                                                     Quarter Ended
                                                        March 31,
                                                1998                 1997
                                             ----------           -----------

Increase (Decrease) in Cash and Cash
  Equivalents:

    Net Cash Provided by Operating
      Activities                             $  586,084           $  590,230
                                             ----------           ----------

    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                   -
        Other                                        -                 8,676
                                             ----------           ----------
          Net cash provided by
            investing activities              1,193,825                8,676
                                             ----------           ----------

    Cash Flows from Financing
      Activities:
        Distributions to limited
          partners                             (690,000)            (690,000)
                                             ----------           ----------
            Net cash used in
              financing activities             (690,000)            (690,000)
                                             ----------           ----------

Net Increase (Decrease) in Cash and
  Cash Equivalents                            1,089,909              (91,094)

Cash and Cash Equivalents at
  Beginning of Quarter                          876,452              554,593
                                             ----------           ----------

Cash and Cash Equivalents at End
  of Quarter                                 $1,966,361           $  463,499
                                             ==========           ==========

Supplemental Schedule of Non-Cash
  Investing and Financing Activities:

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

    Distributions declared and
      unpaid at end of quarter               $1,833,748           $  690,000
                                             ==========           ==========




            See accompanying notes to condensed financial statements.

                                        4

<PAGE>



                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                     Quarters Ended March 31, 1998 and 1997


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 ended March 31, 1998,  may not be indicative of the results
         that may be expected for the year ending December 31, 1998.  Amounts as
         of December 31, 1997, 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 the Form 10-K of
         CNL Income Fund IV, Ltd. (the "Partnership")for the year ended December
         31, 1997.

2.       Land and Building on Operating Leases:

         In March  1998,  the  Partnership  sold  its  property  in Fort  Myers,
         Florida, to a third party, for $842,100 and received net sales proceeds
         of $794,690,  resulting in a gain of $225,902 for  financial  reporting
         purposes.  This property was originally  acquired by the Partnership in
         December  1988  and  had a cost  of  approximately  $598,000  excluding
         acquisition fees and miscellaneous acquisition expenses; therefore, the
         Partnership sold the property for  approximately  $196,700 in excess of
         its original purchase price.

         In March 1998,  the  Partnership  sold its property in Union  Township,
         Ohio, to a third party, for $680,000 and received net sales proceeds of
         $674,135,  resulting  in a loss of  $104,987  for  financial  reporting
         purposes.

         In connection  with the sale of the  properties  described  above,  the
         Partnership  incurred deferred,  subordinated,  real estate disposition
         fees of $45,663 (see Note 4).



                                        5

<PAGE>



                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
                     Quarters Ended March 31, 1998 and 1997


3.       Allocations and Distributions:

         Generally, all net income and net losses of the Partnership,  excluding
         gains and losses from the sale of property, are allocated 99 percent to
         the  limited  partners  and  one  percent  to  the  general   partners.
         Distributions  of net  cash  flow are made 99  percent  to the  limited
         partners and one percent to the general  partners;  provided,  however,
         that the one percent of net cash flow to be  distributed to the general
         partners  is  subordinated  to receipt by the  limited  partners  of an
         aggregate,  ten percent,  cumulative,  noncompounded  annual  return on
         their adjusted capital contributions (the "10% Preferred Return").

         Generally,  net  sales  proceeds  from the sale of  properties,  to the
         extent  distributed,  will be distributed first to the limited partners
         in an  amount  sufficient  to  provide  them with  their 10%  Preferred
         Return,  plus the return of their adjusted capital  contributions.  The
         general   partners  will  then  receive,   to  the  extent   previously
         subordinated   and  unpaid,   a  one  percent  interest  in  all  prior
         distributions   of  net  cash  flow  and  a  return  of  their  capital
         contributions.  Any remaining  sales  proceeds will be  distributed  95
         percent  to the  limited  partners  and  five  percent  to the  general
         partners.  Any  gain  from  the  sale of a  property  is,  in  general,
         allocated in the same manner as net sales  proceeds are  distributable.
         Any loss from the sale of a property is, in general,  allocated  first,
         on a pro rata  basis,  to  partners  with  positive  balances  in their
         capital  accounts;  and thereafter,  95 percent to the limited partners
         and five percent to the general partners.

         During the  quarters  ended  March 31, 1998 and 1997,  the  Partnership
         declared  distributions  to the  limited  partners  of  $1,833,748  and
         $690,000,  respectively. This represents distributions for the quarters
         ended  March  31,  1998  and  1997  of  $30.56  and  $11.50  per  unit,
         respectively.  The  distribution  for the quarter ended March 31, 1998,
         includes  $1,233,748  as a  result  of the  distribution  of net  sales
         proceeds  from the sale of the  Properties  in Fort Myers,  Florida and
         Union  Township,  Ohio.  This  amount was  applied  toward the  limited
         partners' 10% Preferred Return. No distributions  have been made to the
         general partners to date.



                                        6

<PAGE>



                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
                     Quarters Ended March 31, 1998 and 1997


4.       Related Party Transactions:

         Certain  affiliates  are  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  affiliates
         provide a substantial  amount of services in connection  with the sale.
         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.  For the quarter ended March 31,
         1998, the Partnership incurred $45,663 in deferred,  subordinated, real
         estate  disposition  fees as a result  of the sales of  properties.  No
         deferred,  subordinated, real estate disposition fees were incurred for
         the quarter ended March 31, 1997.



                                        7

<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 March
31, 1998,  the  Partnership  owned 38  Properties,  including  interests in five
Properties owned by joint ventures in which the Partnership is a co-venturer and
one Property owned with affiliates as tenants-in-common.

Liquidity and Capital Resources

         During the  quarters  ended  March 31, 1998 and 1997,  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 $586,084 and $590,230,  respectively. The decrease in
cash from operations for the quarter ended March 31, 1998, is primarily a result
of changes in income and expenses as described in "Results of Operations" below.

         Other  sources and uses of capital  included the  following  during the
quarter ended March 31, 1998.

         In  July  1997,  the  Partnership  entered  into  new  leases  for  the
Properties in Portland and Winchester, Indiana, with a new tenant to operate the
Properties as Arby's restaurants.  In connection therewith, the Partnership paid
a total of $250,000 in renovation costs during the quarter ended March 31, 1998,
which had been  incurred and accrued as  construction  costs payable at December
31, 1997.

         In March  1998,  the  Partnership  sold  its  Property  in Fort  Myers,
Florida,  to a third party,  for  $842,100  and  received net sales  proceeds of
$794,690, resulting in a gain of $225,902 for financial reporting purposes. This
Property was originally  acquired by the  Partnership in December 1988 and had a
cost of approximately  $598,000,  excluding  acquisition fees and  miscellaneous
acquisition  expenses;   therefore,   the  Partnership  sold  the  Property  for
approximately $196,700 in excess of its original purchase price. In addition, in
March 1998, the  Partnership  sold its Property in Union  Township,  Ohio, to an
unrelated third party, for $680,000 and received net sales proceeds of $674,135,
resulting in a loss of $104,987 for financial reporting purposes.


                                        8

<PAGE>



Liquidity and Capital Resources - Continued

In  connection  with the  sale of these  Properties,  the  Partnership  incurred
deferred, subordinated, real estate disposition fees of $45,663. The Partnership
distributed  $1,233,748 of the net sales proceeds as a special  distribution  of
net sales proceeds from the sale of Properties to the limited partners.

         Currently,  rental  income from the  Partnership's  Properties  and net
sales  proceeds  are invested in money  market  accounts  and other  short-term,
highly liquid  investments  pending the  Partnership's  use of such funds to pay
Partnership  expenses or to make  distributions  to the  partners.  At March 31,
1998, the Partnership had $1,966,361 invested in such short-term  investments as
compared  to  $876,452  at  December  31,  1997.  The  increase in cash and cash
equivalents  during the quarter ended March 31, 1998, is primarily  attributable
to the receipt of net sales proceeds  relating to the sales of the Properties in
Fort Myers,  Florida and Union  Township,  Ohio, as described  above.  The funds
remaining  at March 31, 1998,  will be used toward the payment of  distributions
and other liabilities.

         Total liabilities of the Partnership,  including distributions payable,
increased to $2,100,432 at March 31, 1998, from $1,157,589 at December 31, 1997,
primarily as a result of the  Partnership's  accruing a special  distribution of
net sales proceeds  totalling  $1,233,748 from the sale of Properties  described
above,  payable to the  limited  partners  at March 31,  1998.  The  increase in
liabilities was partially offset by a decrease in construction  costs payable as
a result of the payment during the quarter ended March 31, 1998, of construction
costs  accrued at December  31, 1997  relating to the  Partnership's  Properties
located  in  Winchester  and  Portland,   Indiana,  as  described  above.  Total
liabilities  at  March  31,  1998,  to the  extent  they  exceed  cash  and cash
equivalents  at March 31, 1998,  will be paid from future cash from  operations,
and in the event the general  partners elect to make  additional  contributions,
from future general partner contributions.

         Based on current and  anticipated  future cash from  operations and for
the  quarter  ended  March 31,  1998,  net sales  proceeds  from the sale of the
Properties in Fort Myers, Florida, and Union Township, Ohio, and for the quarter
ended  March 31,  1997,  additional  capital  contributions  from the  corporate
general partner received in April 1997, the Partnership  declared  distributions
to limited  partners of $1,833,748 and $690,000 for the quarters ended March 31,
1998 and 1997,  respectively.  This  represents  distributions  for the quarters
ended  March 31,  1998 and 1997 of $30.56  and  $11.50  per unit,  respectively.
Distributions  for the quarter  ended March 31, 1998,  include  $1,233,748  as a
result of the distribution of net sales proceeds from the sale of the Properties
in Fort Myers, Florida and Union Township,  Ohio. As a result of the sale of the
Properties,  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  for the  quarter  ended  March  31,  1998 and are
expected to remain at this level. This special distribution was effectively a

                                        9

<PAGE>



Liquidity and Capital Resources - Continued

return of a portion of the limited partners' investment, although, in accordance
with the Partnership  agreement,  it was applied to the limited partners' unpaid
preferred  return.  No  distributions  were made to the general partners for the
quarters  ended March 31, 1998 and 1997. No amounts  distributed  to the limited
partners for the quarters  ended March 31, 1998 and 1997,  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.

         The Partnership's  investment strategy of acquiring Properties for cash
and generally  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.


Results of Operations

         During the quarter  ended March 31,  1997,  the  Partnership  owned and
leased 35 wholly  owned  Properties  (including  one  Property in  Douglasville,
Georgia,  which was sold in November  1997),  and during the quarter ended March
31, 1998, the Partnership owned and leased 34 wholly owned Properties (including
two  Properties,  one in each of Union Township,  Ohio and Fort Myers,  Florida,
which  were  sold in March  1998),  generally  to  operators  of  fast-food  and
family-style  restaurant  chains. In connection  therewith,  during the quarters
ended March 31, 1998 and 1997,  the  Partnership  earned  $571,885 and $581,248,
respectively,  in rental  income from  operating  leases and earned  income from
direct  financing  leases  from  these  Properties.  Rental  and  earned  income
decreased  during the quarter  ended March 31, 1998, as a result of the sales of
the Properties in Douglasville, Georgia and Fort Myers, Florida in November 1997
and March 1998, respectively. Rental and earned income are expected to remain at
reduced amounts as a result of distributing the net sales proceeds from the sale
of the  Properties  in Fort Myers,  Florida,  and Union  Township,  Ohio, to the
limited partners, as described above in "Liquidity and Capital Resources."

         During the quarters ended March 31, 1998 and 1997, 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.
In connection therewith,  during the quarters ended March 31, 1998 and 1997, the
Partnership  earned $42,174 and $55,209,  respectively,  attributable to the net
income earned by these joint ventures.


                                       10

<PAGE>



Results of Operations - Continued

         Operating expenses,  including  depreciation and amortization  expense,
were  $192,420  and  $201,359  for the  quarters  ended March 31, 1998 and 1997,
respectively.

         As a result of the former tenant of the Property in Leesburg,  Florida,
defaulting  under the  terms of its lease in  September  1994,  the  Partnership
expects to  continue  to incur  certain  expenses,  such as real  estate  taxes,
insurance and maintenance until a replacement tenant is located. The Partnership
is currently seeking a replacement tenant for this Property.

         As a result of the sales of the Properties in Fort Myers,  Florida, and
Union  Township,  Ohio,  the  Partnership  recognized  a gain  of  $120,915  for
financial  reporting  purposes  during the  quarter  ended  March 31,  1998.  No
Properties were sold during the quarter ended March 31, 1997.

                                       11

<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 - None.

                  (b)      No reports on Form 8-K were filed  during the quarter
                           ended March 31, 1998.

                                       12

<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 13th day of May, 1998.


                            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)