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, 2000
                                          -------------------------------

                                       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                                   32801-3336
----------------------------------              -------------------------------
(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                 8-12

     Item 3.      Quantitative and Qualitative Disclosures About
                      Market Risk                                         12

Part II.

     Other Information                                                    13-15





<PAGE>


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

<CAPTION>

                                                                              June 30,               December 31,
                                                                                2000                     1999
                                                                          -------------------      -------------------
<S> <C>
                               ASSETS

   Land and buildings on operating leases, less
       accumulated  depreciation  and  allowance  for loss on land
       and building                                                             $ 14,014,986         $ 15,080,971
   Net investment in direct financing leases                                       1,166,821            1,189,488
   Investment in joint ventures                                                    3,282,440            3,332,012
   Cash and cash equivalents                                                       1,782,300              725,493
   Receivables, less allowance for doubtful accounts
       of $212,069 and $215,029, respectively                                         56,237              141,675
   Prepaid expenses                                                                   12,943               15,383
   Lease costs, less accumulated amortization of
       $22,155 and $26,113, respectively                                               1,789               29,031
   Accrued rental income                                                             242,807              314,266
                                                                          -------------------      -------------------

                                                                                $ 20,560,323         $ 20,828,319
                                                                          ===================      ===================

                  LIABILITIES AND PARTNERS' CAPITAL

   Accounts payable                                                               $   28,112         $     91,074
   Accrued and escrowed real estate taxes payable                                     85,964               63,585
   Distributions payable                                                             600,000              600,000
   Due to related parties                                                            317,663              241,509
   Rents paid in advance and deposits                                                 42,558               64,792
                                                                          -------------------      -------------------
       Total liabilities                                                           1,074,297            1,060,960

   Partners' capital                                                              19,486,02            19,767,359
                                                                          -------------------      -------------------

                                                                                $ 20,560,323         $ 20,828,319
                                                                          ===================      ===================


                    See accompanying notes to condensed financial statements.


<PAGE>


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

                                                                  Quarter Ended                     Six Months Ended
                                                                    June 30,                            June 30,
                                                             2000              1999              2000              1999
                                                          ------------      ------------     --------------    --------------
Revenues:
    Rental income from operating leases                     $ 498,982         $ 496,860         $1,028,579        $ 993,393
    Adjustments to accrued rental income                      (51,520 )              --            (51,520 )             --
    Earned income from direct financing leases                 29,747            30,864             59,783           61,990
    Contingent rental income                                    4,419            26,131             13,502           34,374
    Interest and other income                                   5,098             7,051             30,997           16,969
                                                          ------------      ------------     --------------    --------------
                                                              486,726           560,906          1,081,341        1,106,726
                                                          ------------      ------------     --------------    --------------

Expenses:
    General operating and administrative                       54,652            31,152             95,863           71,590
    Bad debt expense                                               --                --             13,955               --
    Professional services                                       8,031            11,364             23,638           21,364
    Real estate taxes                                          19,062             8,576             24,141           13,855
    State and other taxes                                         327                --             17,749           15,395
    Depreciation and amortization                             127,411           102,473            229,984          205,004
    Transaction costs                                          26,525            71,148             61,442          104,166
                                                          ------------      ------------     --------------    --------------
                                                              236,008           224,713            466,772          431,374
                                                          ------------      ------------     --------------    --------------

Income Before Equity in Earnings of Joint
    Ventures, Gain on Sale of Land and
    Building and Provision for Loss on Land
    and Building                                              250,718           336,193            614,569          675,352

Equity in Earnings of Joint Ventures                           72,251            72,942            139,130          146,616

Gain on Sale of Land and Building                             552,580                --            552,580               --

Provision for Loss on Land and Building                      (387,612 )              --           (387,612 )             --
                                                          ------------      ------------     --------------    --------------

Net Income                                                  $ 487,937         $ 409,135          $ 918,667        $ 821,968
                                                          ============      ============     ==============    ==============

Allocation of Net Income:
    General partners                                         $ (8,216 )         $ 4,091           $ (3,909 )       $  8,220
    Limited partners                                          496,153           405,044            922,576          813,748
                                                          ------------      ------------     --------------    --------------

                                                            $ 487,937         $ 409,135          $ 918,667        $ 821,968
                                                          ============      ============     ==============    ==============

Net Income Per Limited Partner Unit                           $  8.27           $  6.75           $  15.38         $  13.56
                                                          ============      ============     ==============    ==============

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


           See accompanying notes to condensed financial statements.
<PAGE>


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


                                                        Six Months Ended              Year Ended
                                                            June 30,                 December 31,
                                                              2000                       1999
                                                     -----------------------    -----------------------

General partners:
    Beginning balance                                           $   787,351              $  769,078
    Net income                                                       (3,909 )                18,273
                                                     -----------------------    -----------------------
                                                                    783,442                 787,351
                                                     -----------------------    -----------------------

Limited partners:
    Beginning balance                                            18,980,008              19,570,922
    Net income                                                      922,576               1,809,086
    Distributions ($20 and $40 per limited
       partner unit, respectively)                               (1,200,000 )            (2,400,000 )
                                                     -----------------------    -----------------------
                                                                 18,702,584              18,980,008
                                                     -----------------------    -----------------------

Total partners' capital                                        $ 19,486,026            $ 19,767,359
                                                     =======================    =======================


           See accompanying notes to condensed financial statements.

<PAGE>


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


                                                                           Six Months Ended
                                                                               June 30,
                                                                       2000               1999
                                                                  ---------------    ----------------

Increase (Decrease) in Cash and Cash Equivalents

    Net Cash Provided by Operating Activities                         $1,167,482          $1,127,102
                                                                  ---------------    ----------------

    Cash Flows from Investing Activities:
       Proceeds from sale of land and buildings                        1,089,325                  --
       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                                           1,089,325             (15,202 )
                                                                  ---------------    ----------------

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

Net Increase (Decrease) in Cash and Cash Equivalents                   1,056,807             (88,100 )

Cash and Cash Equivalents at Beginning of Period                         725,493             739,382
                                                                  ---------------    ----------------

Cash and Cash Equivalents at End of Period                            $1,782,300        $    651,282
                                                                  ===============    ================

Supplemental Schedule of Non-Cash Investing and
    Financing Activities:

       Deferred real estate disposition fees incurred
          and unpaid at end of period                                  $  32,850        $       --
                                                                  ===============    ================

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



           See accompanying notes to condensed financial statements.
<PAGE>

</TABLE>




                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
               Quarters and Six Months Ended June 30, 2000 and 1999


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, 2000,  may not be  indicative
         of the results  that may be expected  for the year ending  December 31,
         2000.  Amounts as of  December  31,  1999,  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, 1999.

2.       Land and Buildings on Operating Leases:

         Land and buildings on operating leases consisted of the following at:

<TABLE>

<CAPTION>

                                                           June 30,          December 31,
                                                             2000                1999
                                                      -------------------  -------------------
<S> <C>

               Land                                         $  7,051,698         $ 7,244,512
               Buildings                                      11,523,764          11,986,556
                                                      -------------------  -------------------
                                                              18,575,462          19,231,068
               Less accumulated depreciation                  (4,172,864 )        (4,150,097  )
                                                      -------------------  -------------------
                                                              14,402,598          15,080,971
               Less allowance for loss on land and
               building                                         (387,612 )                --
                                                      -------------------  -------------------

                                                            $ 14,014,986        $ 15,080,971
                                                      ===================  ===================
</TABLE>



<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
              Quarters and Six Months Ended June 30, 2000 and 1999


2.       Land and Buildings on Operating Leases - Continued:

         In June 2000, the Partnership sold its property in Detroit, Michigan to
         the  tenant  for   $1,095,000   and  received  net  sales  proceeds  of
         $1,089,325,  resulting  in a gain of $552,580 for  financial  reporting
         purposes.  This property was originally  acquired by the Partnership in
         October  1988  and  had a cost  of  approximately  $614,500,  excluding
         acquisition fees and miscellaneous acquisition expenses; therefore, the
         Partnership sold the property for  approximately  $474,800 in excess of
         its  original   purchase  price.  In  connection  with  the  sale,  the
         Partnership incurred a deferred,  subordinated, real estate disposition
         fee of $32,850 (see Note 3).

         In addition, at June 30, 2000, the Partnership recorded a provision for
         loss on land and building of $387,612  relating to the property in Palm
         Bay,  Florida.  The tenant of this  property  vacated the  property and
         discontinued  the  payment  of  rent.  The  allowance   represents  the
         difference between the carrying value of the property at June 30, 2000,
         and the estimated net realizable value of the property.

3.       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.  For the quarter and six months ended June 30, 2000, the
         Partnership incurred $32,850 as a deferred,  subordinated,  real estate
         disposition  fee as a result of the sale of a property (see Note 2). No
         deferred,  subordinated, real estate disposition fees were incurred for
         the quarter and six months ended June 30, 1999.

4.       Termination of Merger

         On March 1, 2000,  the general  partners  and CNL  American  Properties
         Fund, Inc.  ("APF") mutually agreed to terminate the Agreement and Plan
         of  Merger  entered  into in  March  1999.  The  general  partners  are
         continuing  to evaluate  strategic  alternatives  for the  Partnership,
         including alternatives to provide liquidity to the limited partners.


<PAGE>


                            CNL INCOME FUND IV, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                 Quarters and Six Months Ended June 30, 2000 and 1999


5.       Subsequent Events:

         In July 2000, the Partnership sold its properties in Temple Terrace and
         Punta  Gorda,  Florida,  to an  unrelated  third  party  for a total of
         approximately $2,353,600, resulting in a gain of approximately $582,100
         for financial reporting purposes.



<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,
2000,  the  Partnership  owned 37 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 as tenants-in-common.

Capital Resources

         The  Partnership's  primary  source of capital for the six months ended
June 30, 2000 and 1999 was 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 $1,167,482 and
$1,127,102  for the six months ended June 30, 2000 and 1999,  respectively.  The
increase  in cash from  operations  for the six months  ended June 30,  2000 was
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, 2000.

         In June 2000, the Partnership  sold its Property in Detroit,  Michigan,
to the tenant for  $1,095,000  and  received net sales  proceeds of  $1,089,325,
resulting in a gain of $552,580 for financial reporting purposes.  This Property
was  originally  acquired by the  Partnership  in October 1988 and had a cost of
approximately $614,500, excluding acquisition fees and miscellaneous acquisition
expenses;  therefore,  the  Partnership  sold this  Property  for  approximately
$474,800 in excess of its original  purchase price. In connection with the sale,
the Partnership incurred a deferred, real estate disposition fee of $32,850. The
Partnership  intends to distribute the majority of the net sales proceeds to the
limited partners.

         In July 2000, the Partnership sold its Properties in Temple Terrace and
Punta Gorda,  Florida to an unrelated  third party for a total of  approximately
$2,353,600,  resulting  in  a  gain  of  approximately  $582,100  for  financial
reporting purposes. The Partnership intends to use the majority of the net sales
proceeds to distribute 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 and  certificates  of deposit 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,
2000, the Partnership had $1,782,300 invested in such short-term investments, as
compared  to  $725,493  at  December  31,  1999.  The  increase in cash and cash
equivalents was primarily due to the receipt of net sales proceeds from the sale
of the  Partnership's  Property in Detroit,  Michigan,  as described  above. The
funds  remaining  at June 30, 2000,  after  payment of  distributions  and other
liabilities will be distributed to the limited partners.

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.

         Total liabilities of the Partnership,  including distributions payable,
increased to $1,074,297  at June 30, 2000 from  $1,060,960 at December 31, 1999.
The general partners believe that the Partnership has sufficient cash on hand to
meet its working capital needs.

         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,  the Partnership
declared  distributions  to limited  partners of $1,200,000  for each of the six
months ended June 30, 2000 and 1999  ($600,000  for each of the  quarters  ended
June 30,  2000 and  1999).  This  represents  distributions  for each of the six
months ended June 30, 2000 and 1999 of $20.00 per unit ($10.00 per unit for each
applicable quarter).  No distributions were made to the general partners for the
quarters and six months ended June 30, 2000 and 1999. No amounts  distributed to
the  limited  partners  for the six  months  ended  June  30,  2000 and 1999 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.

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,  2000 and 1999,  the  Partnership
owned and leased 30 wholly owned Properties (which included one Property sold in
June 2000)  generally  to operators of  fast-food  and  family-style  restaurant
chains. In connection  therewith,  during the six months ended June 30, 2000 and
1999, the Partnership earned $1,036,842 and $1,055,383,  respectively, in rental
income from  operating  leases (net of adjustments to accrued rental income) and
earned income from direct financing  leases,  $477,209 and $527,724 of which was
earned  during the  quarters  ended June 30,  2000 and 1999,  respectively.  The
decrease in rental and earned  income for the quarter and six months  ended June
30, 2000 was  partially  due to the fact that in 1998 the tenant of the Property
in  Richmond,  Virginia  filed for  bankruptcy  and,  during the quarter and six
months ended June 30, 2000, rejected the lease relating to this Property,  which
was  the  only  Property  leased  by  this  tenant.  As  a  result,  the  tenant
discontinued  making rental payments on the rejected lease. In conjunction  with
the rejected  lease,  during the quarter and six months ended June 30, 2000, the
Partnership reversed approximately $38,700 of 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. The Partnership will not recognize any
rental and earned income from this vacant  Property  until a new tenant for this
Property  is located or until the  Property is sold and the  proceeds  from such
sale  are  reinvested  in an  additional  Property.  The  general  partners  are
currently seeking either a new tenant or purchaser for the vacant Property whose
lease was  rejected.  The lost revenues  resulting  from the rejected and vacant
Property  could  have an adverse  effect on the  results  of  operations  of the
Partnership if the  Partnership is not able to re-lease the Property in a timely
manner.

         The  decrease  in rental and earned  income  during the quarter and six
months  ended  June 30,  2000 was  also  due to the  fact  that the  Partnership
established  an  allowance  for  doubtful   accounts  of  $19,500  and  $39,000,
respectively,  for the quarter  and six months  ended June 30, 2000 for past due
rental amounts  relating to the Property in Topeka,  Kansas.  The tenant of this
Property  vacated the Property in December 1999 and  discontinued  making rental
payments.  The Partnership is currently  seeking either a replacement  tenant or
purchaser  for this  Property.  The  general  partners  will  continue to pursue
collection  of past  due  rental  amounts  relating  to this  Property  and will
recognize such amounts as income if collected.

         The  decrease  in rental and earned  income  during the quarter and six
months ended June 30, 2000 was also  attributable  to the fact that in May 2000,
the  tenant of the  Property  in Palm Bay,  Florida  vacated  the  Property  and
discontinued  making rental  payments.  As a result,  during the quarter and six
months  ended June 30,  2000,  the  Partnership  established  an  allowance  for
doubtful  accounts in the amount of $4,757 for past due rental amounts  relating
to this Property. In addition,  during the quarter and six months ended June 30,
2000, the Partnership reversed  approximately  $12,830 of 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. The general partners will
continue  to pursue  collection  of past due  rental  amounts  relating  to this
Property and will recognize such amounts as income if collected. The Partnership
is currently seeking either a replacement tenant or purchaser for this Property.
The  decrease in rental and earned  income  during the six months ended June 30,
2000, was partially offset by the fact that during the six months ended June 30,
2000, the Partnership  collected and recognized as income approximately  $76,000
in past due  rental  amounts  from the  guarantor  of the  former  tenant of the
Property in Palm Bay,  Florida,  as compared to  approximately  $8,000 collected
during the six months ended June 30, 1999.

         The  decrease  in rental and earned  income  during the quarter and six
months ended June 30, 2000, was partially offset by an increase of approximately
$33,600 and $11,400, respectively,  during the quarter and six months ended June
30, 2000 due to the fact that the Partnership collected and recognized as income
past due rental amounts for which the Partnership had previously  established an
allowance for doubtful accounts  relating to its Properties in Dundee,  Michigan
and Marion, Ohio.

         During the six months  ended June 30,  2000 and 1999,  the  Partnership
also earned  $13,502 and $34,374,  respectively,  in contingent  rental  income,
$4,419 and $26,131 of which was earned  during the quarters  ended June 20, 2000
and 1999,  respectively.  The decrease in  contingent  rental  income during the
quarter  and six months  ended June 30,  2000 was  primarily  attributable  to a
decrease in gross sales of certain  restaurant  properties,  the leases of which
require the payment of contingent rental income.

         During the six months  ended June 30,  2000 and 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, 2000 and 1999,  the
Partnership earned $139,130 and $146,616,  respectively,  $72,251 and $72,942 of
which was earned during the quarters ended June 30, 2000 and 1999, respectively.
Net income earned by joint  ventures  during the six months ended June 30, 2000,
was less than that earned during the six months ended June 30, 1999,  due to the
fact that  during  the six months  ended June 30,  2000,  Auburn  Joint  Venture
adjusted  estimated  contingent  rental amounts accrued at December 31, 1999, to
actual amounts received.

         Operating  expenses,  including  depreciation  and  amortization,  were
$466,772  and  $431,374  for the six  months  ended  June  30,  2000  and  1999,
respectively,  of which $236,008 and $224,713 were incurred  during the quarters
ended June 30, 2000 and 1999,  respectively.  The increase in operating expenses
during the  quarter  and six months  ended June 30,  2000,  as  compared  to the
quarter and six months ended June 30, 1999,  was  partially  attributable  to an
increase in  administrative  expenses  for  servicing  the  Partnership  and its
Properties  and real  estate tax  expense  relating  to the  Property in Topeka,
Kansas,  for which the tenant  defaulted under the terms of its lease agreement,
as  described  above.  The  increase in  operating  expenses  was also due to an
increase in amortization expense due to the expensing the balance of unamortized
lease costs relating to the  Partnership's  Property in Palm Bay,  Florida,  for
which the tenant defaulted under the terms of its lease agreement,  as described
above.  The Partnership  has incurred and expects to incur  operating  expenses,
such as repairs and  maintenance,  insurance  and real estate taxes  relating to
these two  Properties  until  they are sold or  re-leased  to new  tenants.  The
general  partners  are  currently  seeking new tenants or  purchasers  for these
Properties.

         The increase in operating expenses during the six months ended June 30,
2000 was also  partially  due to the fact that during the six months  ended June
30, 2000, the Partnership  recorded bad debt expense relating to past due rental
amounts for the Property in Topeka, Kansas. The tenant vacated this Property and
discontinued  operations in December 1999. The general partners will continue to
pursue  collection of past due rental amounts relating to this Property and will
recognize  such  amounts  as income  if  collected.  The  general  partners  are
currently seeking either a new tenant or purchaser for this Property.

         The  increase in operating  expenses  during the quarter and six months
ended  June 30,  2000,  was  partially  offset by the fact that the  Partnership
incurred less transaction costs during the quarter and six months ended June 30,
2000, relating 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") due to the termination of the proposed merger,  as
described in "Termination of Merger" below.

         As a result  of the  sale of the  Property  in  Detroit,  Michigan,  as
described above in "Capital  Resources,"  the  Partnership  recognized a gain of
$552,580  for  financial  reporting  purposes  during the quarter and six months
ended June 30, 2000. No  Properties  were sold during the quarter and six months
ended June 30, 1999.

         During the quarter and six months ended June 30, 2000, the  Partnership
recorded a provision  for loss on land and  building 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.  The
allowance  represented the difference between the carrying value of the Property
at June 30, 2000,  and the estimated net  realizable  value of the Property.  No
such  allowance  was  recorded  during the quarter and six months ended June 30,
1999.

Termination of Merger

         On March 1, 2000,  the  general  partners  and APF  mutually  agreed to
terminate the Agreement and Plan of Merger (the "Merger")  entered into in March
1999. The general partners are continuing to evaluate strategic alternatives for
the  Partnership,  including  alternatives  to provide  liquidity to the limited
partners.

Dismissal of Legal Action

         As described in greater detail in Part II, Item 1. "Legal Proceedings",
in 1999,  two  groups of limited  partners  in several  CNL Income  Funds  filed
purported  class action  suits  against the general  partners and APF  alleging,
among other  things,  that the general  partners  had breached  their  fiduciary
duties  in  connection  with the  proposed  Merger.  These  actions  were  later
consolidated  into one action.  On April 25, 2000, the judge in the consolidated
action issued an order dismissing the action without prejudice,  with each party
to bear its own costs and attorneys' fees.

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
              sought unspecified  damages and equitable relief. On July 8, 1999,
              the plaintiffs  filed an amended  complaint  which, in addition to
              naming three additional plaintiffs, included 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 sought additional equitable relief. As amended, the caption of
              the case was 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 sought unspecified damages and equitable relief.

              On September 23, 1999,  Judge Lawrence  Kirkwood  entered an order
              consolidating  the two cases  under the  caption In re: CNL Income
              Funds  Litigation,  Case No. 99-3561.  Pursuant to this order, the
              plaintiffs  in  these  cases  filed  a  consolidated  and  amended
              complaint on November 8, 1999.  On December 22, 1999,  the general
              partners and CNL Group,  Inc. filed motions to dismiss and motions
              to strike.  On December 28, 1999, APF and CNL Fund Advisors,  Inc.
              filed motions to dismiss.  On March 6, 2000, all of the defendants
              filed a Joint Notice of Filing Form 8-K Reports and  Suggestion of
              Mootness.

              On April 25, 2000,  Judge Kirkwood issued a Stipulated Final Order
              of Dismissal of Consolidated Action, dismissing the action without
              prejudice,  with each  party to bear its own costs and  attorneys'
              fees.

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.)

                   27     Financial Data Schedule (Filed herewith.)


<PAGE>



              (b)  Reports on Form 8-K

                   No reports on Form 8-K were filed  during the  quarter  ended
                   June 30, 2000.



<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 August, 2000.


                                         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)