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                                   FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark One)

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

         For the quarterly period ended             June 30, 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    0-18528

                         INCOME GROWTH PARTNERS, LTD. X
             (Exact name of registrant as specified in its charter)

           CALIFORNIA                                33-0294177
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization                     Identification No.)

       11300 Sorrento Valley Road, Suite 108, San Diego, California 92121
              (Address of principal executive offices) (Zip Code)

                                 (619) 457-2750
              (Registrant's telephone number, including area code)


(Former name, former address and former fiscal year, if changed since last
report)

Indicate by check mark whether the registration (1) has filed all reports
required to be filed by Section 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
filing requirements for the past 90 days. Yes [X] No [ ]

The number of the registrant's Original Limited Partnership Units outstanding as
of May 14, 1998 was 18,826.5. The number of the registrant's Class A Units
outstanding as of May 14, 1998 was 8,100.


                         PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

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                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

                          CONSOLIDATED BALANCE SHEETS
                      June 30, 1998 and December 31, 1997
                                  (Unaudited)
                                   ----------

<TABLE>
<CAPTION>
                                                             June 30,              December 31,
                                                               1998                   1997
                                                           ------------           ------------
<S>                                                        <C>                    <C>         
                                        ASSETS

Rental properties:
         Land                                              $  7,078,365           $  7,078,365
         Buildings and improvements                          21,700,307             21,607,078
                                                           ------------           ------------

                                                             28,778,672             28,685,443
         Less accumulated depreciation                       (9,012,617)            (8,582,492)
                                                           ------------           ------------

                                                             19,766,055             20,102,951

Other assets:
         Cash and cash equivalents                              224,431                282,293
         Deferred loan fees, net of accumulated
            amortization of $97,121
            and $80,873, respectively                           680,056                689,294
         Prepaid expenses and other assets                      244,093                151,181
                                                           ------------           ------------

                                                              1,148,580              1,122,768
                                                           ------------           ------------

                                                           $ 20,914,635           $ 21,225,719
                                                           ============           ============

                    LIABILITIES AND PARTNERS' CAPITAL

Mortgage loans payable                                     $ 19,674,036           $ 19,765,202

Other liabilities:
         Loan payable to affiliate                              103,199                113,000
         Accounts payable and accrued liabilities               178,177                148,501
         Accrued interest payable                               125,699                125,623
         Security deposits                                      203,423                201,250
                                                           ------------           ------------

                                                             20,284,534             20,353,576

Commitments

Partners' capital                                               640,101                882,143
Note receivable from general partner                            (10,000)               (10,000)
                                                           ------------           ------------

                                                           $ 20,914,635           $ 21,225,719
                                                           ============           ============
</TABLE>


    The accompanying notes are an integral part of the financial statements.

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<PAGE>   3

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                For the Six Months Ended June 30, 1998 and 1997
                                  (Unaudited)
                                   ----------


<TABLE>
<CAPTION>
                                                                     For the Six Months
                                                                      Ended June 30,
                                                              ---------------------------------
                                                                 1998                  1997
                                                              -----------           -----------
<S>                                                           <C>                   <C>        
Revenues:
         Rents                                                $ 1,965,623           $ 1,789,190
         Other                                                     79,396                76,736
                                                              -----------           -----------

                Total revenues                                  2,045,019             1,865,926
                                                              -----------           -----------

Expenses:
         Operating expenses                                       944,786               911,119
         Depreciation and amortization                            446,377               445,931
         Interest                                                 735,899               766,268
                                                              -----------           -----------

              Total expenses                                    2,127,062             2,123,318
                                                              -----------           -----------

Net loss                                                      $   (82,043)          $  (257,392)
                                                              ===========           ===========

Basic and diluted per limited partnership unit data:
Net loss per limited partnership unit                         $     (3.05)          $     (9.56)
                                                              ===========           ===========
Weighted average limited partnership units
         outstanding                                               26,926                26,926
                                                              ===========           ===========
</TABLE>


    The accompanying notes are an integral part of the financial statements.

                                       2

<PAGE>   4

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                For the Six Months Ended June 30, 1998 and 1997
                                  (unaudited)

                                   ----------

<TABLE>
<CAPTION>
                                                                           For the Six Months
                                                                            Ended June 30,
                                                                    ------------------------------
                                                                      1998                 1997
                                                                    ---------           ---------
<S>                                                                 <C>                 <C>       

Cash flows from operating activities:
    Net loss                                                        $ (82,043)          $(257,392)
    Adjustments to reconcile net loss to net cash provided
       by operating activities:
          Depreciation and amortization                               446,379             445,931
          (Increase) in:
            Deferred loan fees                                         (7,016)                 --
            Prepaid expenses and other assets                         (92,912)           (164,222)
         Increase in:
            Accounts payable and accrued liabilities                   29,752             169,414
            Security deposits                                           2,173               9,535
                                                                    ---------           ---------

              Net cash provided by operating activities               296,333             203,266
                                                                    ---------           ---------
Cash flows from investing activities:
    Capital expenditures                                              (93,229)            (88,565)
                                                                    ---------           ---------

              Net cash used in investing activities                   (93,229)            (88,565)
                                                                    ---------           ---------

Cash flows from financing activities:
         Principal payments under mortgage debt                       (91,166)            (88,743)
         Principal payments to affiliate                               (9,800)            (12,300)
         Distributions to Investors                                  (160,000)                 --
                                                                    ---------           ---------

              Net cash used by financing activities                  (260,966)           (101,043)
                                                                    ---------           ---------

              Net increase (decrease)  in cash and
               cash equivalents                                       (57,862)             13,658
                                                                    ---------           ---------

Cash and cash equivalents at beginning of period                      282,293             244,582
                                                                    ---------           ---------

              Cash and cash equivalents at end of period            $ 224,431           $ 258,240
                                                                    =========           =========

</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                       3
<PAGE>   5

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------


1.   BASIS OF FINANCIAL STATEMENT PRESENTATION:

     The accompanying unaudited consolidated financial statements of Income
     Growth Partners, Ltd. X, a California limited partnership, and subsidiary
     (the "Partnership") have been prepared pursuant to the rules and
     regulations of the Securities and Exchange Commission. Certain information
     and note disclosures normally included in annual financial statements
     prepared in accordance with generally accepted accounting principles have
     been condensed or omitted pursuant to those rules and regulations, although
     the Partnership believes that the disclosures made are adequate to make the
     information presented not misleading. These consolidated financial
     statements should be read in conjunction with the financial statements and
     the notes thereto included in the Partnership's latest audited financial
     statements for the year ended December 31, 1997 filed on Form 10K.

     The accompanying consolidated financial statements have not been audited by
     independent public accountants, but include all adjustments (consisting of
     normal recurring adjustments) which are, in the opinion of the general
     partners, necessary for a fair presentation of the financial condition,
     results of operations and cash flows for the periods presented. However,
     these results are not necessarily indicative of results for a full year.
     
     Certain prior period amounts have been reclassified to conform with the
     current period presentation.

2.   RECENT AUTHORITATIVE PRONOUNCEMENTS:

     In June 1997, the FASB issued SFAS No. 130, Reporting Comprehensive Income.
     SFAS No. 130 establishes requirements for disclosure of comprehensive
     income and becomes effective for the Partnership from the beginning of the
     fiscal year ending December 31, 1998. Comprehensive income includes such
     items as foreign currency translation adjustments and unrealized holding
     gains and losses on available for sale securities that are currently being
     presented by the Company as a component of stockholders' equity (deficit).
     The Partnership has adopted this standard for the interim financial
     statements, however, the Partnership has no comprehensive income items at
     June 30, 1998.



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                  INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   ----------


2.   RECENT AUTHORITATIVE PRONOUNCEMENTS, CONTINUED:

In June 1997, the FASB issued SFAS No. 131, Disclosures About Segments of an
Enterprise and Related Information. SFAS No. 131 establishes standards for
disclosure about operating segments in annual financial statements and selected
information in interim financial reports. It also establishes standards for
related disclosures about products and services, geographic areas and major
customers. This statement supersedes SFAS No. 14, Financial Reporting for
Segments of a Business Enterprise. The new standard becomes effective for the
Partnership for the year ending December 31, 1998, and requires that comparative
information from earlier periods be restated to conform to the requirements of
this standard, however, the new standard has no effect on the Partnership's
financial statement presentation.

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

     The following Management's Discussion and Analysis of Financial Condition
     and Results of Operations should be read in conjunction with the financial
     statements and notes thereto filed herewith.

     a.   Liquidity and Capital Resources:

          Since inception, the Partnership's operating and debt service
          obligations have been financed through the sale of Partnership Units,
          cash provided by operating activities, and 1995 debt restructuring
          activities. During the six months ended June 30, 1998, all of the
          Partnership's operating and debt service cash requirements have been
          met through cash generated from operations.

          As of June 30, 1998, the Partnership's properties, Shadowridge Meadows
          and Mission Park, remain highly leveraged. The Mission Park mortgage
          was refinanced in December 1995 at a fixed interest rate of 7.76%. The
          Shadowridge Meadows mortgage was refinanced in October 1997 at a fixed
          interest rate of 7.49%.



                                       5
<PAGE>   7

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   ----------


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

          Despite the refinancings, mortgage indebtedness on the properties
          remains high, which may make it difficult for the properties to
          service their debt through Partnership operations. In the event that
          one or more of the properties is unable to support its debt service
          and the Partnership is unable to cover operational shortfalls from
          cash reserves, the Partnership may have to take one or more
          alternative courses of action. The general partners would then
          determine, based on their analysis of relevant economic conditions and
          the status of the properties, a course of action intended to be
          consistent with the best interests of the Partnership. Possible
          courses of action might include the sacrifice, sale or refinancing of
          one or more of the properties, the entry into one or more joint
          venture partnerships with other entities, or the filing of another
          bankruptcy petition.

          Net cash provided by operating activities for the six months ended
          June 30, 1998 was approximately $296,000 compared to approximately
          $203,000 for the same period in 1997. The principal reason for this
          increase was an increase in rental revenue.

          Net cash used in investing activities for the six months ended June
          30, 1998 was approximately $93,000 compared to approximately $89,000
          for the same period in 1997. The increase related to building
          improvements was made possible by increased rental revenues.

          Net cash used in financing activities for the six months ended June
          30, 1998 was approximately $261,000 compared to approximately $101,000
          for the same period in 1997. The increase is due to distributions to
          partners and/or investors of $160,000. There were no such
          distributions in the same period of 1997.



                                       6
<PAGE>   8

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   ----------

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

     b.   Results of Operations:

          Comparison of six months ended June 30, 1998 to the six months ended
          June 30, 1997.

          Rental revenue for the six months ended June 30, 1998 was
          approximately $1,966,000, an increase of 9% over rents of
          approximately $1,789,000 for the comparable period in 1997. The
          increase is primarily attributable to an increase in monthly tenant
          rental rates and steady average occupancy rates. On June 30, 1998, the
          Shadowridge Meadows Apartments and Mission Park Apartments reflected
          occupancy rates of 99% and 98%, respectively, compared to 95% and 97%,
          respectively, on June 30, 1997.

          Interest expense for the six months ended June 30, 1998 was
          approximately $736,000, a decrease of 4% over interest expense of
          approximately $766,000 for the comparable period in 1997. The decrease
          is attributable to the refinancing of the Shadowridge Meadows mortgage
          in October 1997.

          Operating expenses for the six months ended June 30, 1998 were
          approximately $945,000, an increase of 4% over operating expenses of
          approximately $911,000 for the comparable period in 1997. The increase
          is due to higher administrative costs in the current year.

          Depreciation and amortization expenses for the six months ended June
          30, 1998 and 1997 were approximately $446,000. Depreciation and
          amortization expenses have remained relatively constant as there have
          been few material additions to buildings and improvements in the
          period.

     c.   Year 2000

          The Partnership currently uses a prepackaged accounting software on a
          Novell Netware platform. The software maker has announced that it will
          not support the current software beginning in the Year 2000. As a
          result, the Partnership intends to purchase a new accounting system
          that is Year 2000 compliant. The Partnership believes that the
          purchase and related training costs will not be material to the
          Partnership's financial position or results of operations.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS:

          There are no pending legal proceedings which may have a material
          adverse effect on the Partnership. However, the Partnership is
          involved in small claims court proceedings against certain present or
          former tenants of its apartment complexes with regard to
          landlord-tenant matters, all of which are considered to be in the
          ordinary course of its business.



                                       7
<PAGE>   9

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
                       (A California Limited Partnership)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   ----------


ITEM 2.   CHANGES IN SECURITIES:

          None

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES:

          None

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:

          None

ITEM 5.   OTHER INFORMATION:

          None

ITEM 6.   EXHIBITS AND REPORTS  ON FORM 8-K:

          None


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                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY


                                   SIGNATURES


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

Date:  August 7, 1998


                                        INCOME GROWTH PARTNERS, LTD. X,
                                        a California Limited Partnership

                                        By:  Income Growth Management, Inc.
                                             General Partner


                                             By: /s/ Timothy C. Maurer
                                                 -------------------------------
                                                 Timothy C. Maurer
                                                 Principal Financial Officer AND
                                                 Duly Authorized Officer of the 
                                                 Registrant


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