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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 September 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
(Unaudited)

<TABLE>
<CAPTION>
                                                              SEPTEMBER 30,      DECEMBER 31,
                                                                  1998               1997
                                                              ------------       ------------
<S>                                                           <C>                <C>         
                                 ASSETS

Rental properties:
  Land                                                        $  7,078,365       $  7,078,365
  Buildings and improvements                                    21,731,106         21,607,078
                                                              ------------       ------------

                                                                28,809,471         28,685,443
  Less accumulated depreciation                                 (9,229,906)        (8,582,492)
                                                              ------------       ------------

                                                                19,579,565         20,102,951

Other assets:
  Cash and cash equivalents                                        286,968            282,293
  Deferred loan fees, net of accumulated amortization of
      $107,147 and $80,873, respectively                           670,036            689,294
  Prepaid expenses and other assets                                260,531            151,181
                                                              ------------       ------------

                                                                 1,217,535          1,122,768
                                                              ------------       ------------

                                                              $ 20,797,100       $ 21,225,719
                                                              ============       ============

                   LIABILITIES AND PARTNERS' CAPITAL

Mortgage loans payable                                        $ 19,629,145       $ 19,765,202

Other liabilities:
  Loan payable to affiliate                                         90,449            113,000
  Accounts payable and accrued liabilities                         172,374            148,501
  Accrued interest payable                                         125,699            125,623
  Security deposits                                                202,905            201,250
                                                              ------------       ------------

                                                                20,220,572         20,353,576

Commitments

Partners' capital                                                  586,528            882,143
Note receivable from general partner                               (10,000)           (10,000)
                                                              ------------       ------------

                                                              $ 20,797,100       $ 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
(Unaudited)

<TABLE>
<CAPTION>
                                                 FOR THE THREE MONTHS            FOR THE NINE MONTHS
                                                  ENDED SEPTEMBER 30              ENDED SEPTEMBER 30
                                              --------------------------     ---------------------------
                                                 1998           1997            1998            1997
                                              -----------    -----------     -----------     -----------
<S>                                           <C>            <C>             <C>             <C>        
Revenues:
   Rents                                      $   973,736    $   922,233     $ 2,939,359     $ 2,711,423
   Other                                           69,053         32,774         148,449         109,512
                                              -----------    -----------     -----------     -----------

           Total revenues                       1,042,789        955,007       3,087,808       2,820,935
                                              -----------    -----------     -----------     -----------


Expenses:
   Operating expenses                             415,188        454,593       1,359,974       1,366,796
   Depreciation                                   227,310        223,254         673,687         669,186
   Interest                                       378,863        367,983       1,114,762       1,134,252
                                              -----------    -----------     -----------     -----------

           Total expenses                       1,021,361      1,045,830       3,148,423       3,170,234
                                              -----------    -----------     -----------     -----------

Net income (loss)                             $    21,428    $   (90,823)    $   (60,615)    $  (349,299)
                                              ===========    ===========     ===========     ===========

Basic and diluted per limited
   partnership unit data
     Net loss per limited partnership unit    $       .80    $     (3.37)    $     (2.25)    $    (12.97)
                                              ===========    ===========     ===========     ===========

     Weighted average limited
       partnership units outstanding               26,926         26,926          26,926          26,926
                                              ===========    ===========     ===========     ===========
</TABLE>


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



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<PAGE>   4


INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A California Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

<TABLE>
<CAPTION>
                                                                          FOR THE NINE MONTHS
                                                                           ENDED SEPTEMBER 30
                                                                       -------------------------
                                                                          1998            1997
                                                                       ---------       ---------
<S>                                                                    <C>             <C>       
Cash flows from operating activities:
   Net loss                                                            $ (60,615)      $(349,299)
   Adjustments to reconcile net loss to net cash provided by
       operating activities:
         Depreciation                                                    647,413         638,428
         Amortization of loan fees                                        26,274          30,758
         (Increase) in:
           Prepaid expenses and other assets                            (109,350)       (271,566)
         Increase in:
           Accounts payable, accrued liabilities and accrued
             interest payable                                             23,949         213,744
           Security deposits                                               1,655          17,597
                                                                       ---------       ---------

             Net cash provided by operating activities                   529,326         279,662
                                                                       ---------       ---------

Cash flows from investing activities:
   Capital expenditures                                                 (124,028)       (116,484)
                                                                       ---------       ---------

             Net cash used in investing activities                      (124,028)       (116,484)

Cash flows from financing activities:
   Principal payments under mortgage debt                               (136,057)       (148,264)
   Loan fees and refinancing costs                                        (7,016)         (6,935)
   Principal payments to affiliate                                       (22,550)        (12,300)
   Distributions to Investors                                           (235,000)             --
                                                                       ---------       ---------

             Net cash used by financing activities                      (400,623)       (167,499)

             Net increase (decrease) in cash and cash equivalents          4,675          (4,321)
                                                                       ---------       ---------

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

             Cash and cash equivalents at end of period                $ 286,968       $ 240,261
                                                                       =========       =========
</TABLE>

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



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<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 September 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. The Partnership believes it is involved in
      only one segment and expects the new standard will have no impact on the
      Partnership's financial presentation.



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<PAGE>   6

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A CALIFORNIA LIMITED PARTNERSHIP)


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 nine months ended September
                30, 1998, all of the Partnership's operating and debt service
                cash requirements have been met through cash generated from
                operations.

                As of September 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%.

                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 nine months
                ended September 30, 1998 was approximately $529,000 compared to
                approximately $280,000 for the same period in 1997. The
                principal reason for this increase was an increase in rental
                revenue.

                There was no material change in net cash used in investing
                activities for the nine months ended September 30, 1998 when
                compared to the same period in 1997.



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<PAGE>   7

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A CALIFORNIA LIMITED PARTNERSHIP)


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

                Net cash used in financing activities for the nine months ended
                September 30, 1998 was approximately $401,000 compared to
                approximately $168,000 for the same period in 1997. The increase
                is due to distributions to partners and/or investors of
                $235,000. There were no such distributions in the same period of
                1997.

           b.   Results of Operations:

                COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 1998 TO THE THREE
                MONTHS ENDED SEPTEMBER 30, 1997.

                Rental revenue for the three months ended September 30, 1998 was
                approximately $974,000, an increase of 6% over rents of
                approximately $922,000 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
                September 30, 1998, the Shadowridge Meadows Apartments and
                Mission Park Apartments reflected occupancy rates of 98% and
                97%, respectively, compared to 96% and 97%, respectively, on
                September 30, 1997.

                Interest expense for the three months ended September 30, 1998
                was approximately $379,000, an increase of 3% over interest
                expense of approximately $368,000 for the comparable period in
                1997. The increase is attributable to prior year fluctuations in
                Shadowridge Meadows' variable interest rate loan, which was
                refinanced to a fixed rate during the fourth quarter of 1997.

                Operating expenses for the three months ended September 30, 1998
                were approximately $415,000, a decrease of 9% over operating
                expenses of approximately $455,000 for the comparable period in
                1997. The decrease is due to lower repair and maintenance
                expense in the current year.

                Depreciation and amortization expenses for the three months
                ended September 30, 1998 and 1997 were approximately $227,000.
                Depreciation and amortization expenses have remained relatively
                constant as there have been few material additions to buildings
                and improvements in the period.



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<PAGE>   8

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A CALIFORNIA LIMITED PARTNERSHIP)


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

                COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1998 TO THE NINE
                MONTHS ENDED SEPTEMBER 30, 1997.

                Rental revenue for the nine months ended September 30, 1998 was
                approximately $2,939,000, an increase of 8% over rents of
                approximately $2,711,000 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
                September 30, 1998, the Shadowridge Meadows Apartments and
                Mission Park Apartments reflected occupancy rates of 98% and
                97%, respectively, compared to 96% and 97%, respectively, on
                September 30, 1997.

                Interest expense for the nine months ended September 30, 1998
                was approximately $1,115,000, a decrease of 2% over interest
                expense of approximately $1,134,000 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 nine months ended September 30, 1998
                were approximately $1,360,000, an decrease of less than 1% over
                operating expenses of approximately $1,367,000 for the
                comparable period in 1997. The decrease is due to lower repair
                and maintenance expense in the current year.

                Depreciation and amortization expenses for the nine months ended
                September 30, 1998 and 1997 were approximately $674,000.
                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 prepackaged accounting software
                on a Windows NT platform. To the extent the Partnership's
                software applications contain source code that are unable to
                appropriately interpret the upcoming Year 2000, some level of
                modification, or even possibly replacement of such applications,
                may be necessary. The Partnership has made an assessment of the
                impact of the Year 2000 issue on its internal operations and has
                developed a plan to bring its computer systems into compliance
                before the end of 1999. The Plan addresses the modification or
                replacement of applications and operating systems to achieve
                timely Year 2000 compliance and also includes communication and
                analysis with outside vendors with whom the Partnership
                interfaces electronically. Although it is not possible to
                quantify the aggregate cost of such modifications, the



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<PAGE>   9

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A CALIFORNIA LIMITED PARTNERSHIP)


                Partnership does not anticipate that the cost will have a
                material adverse effect on its financial position or results of
                operations. The foregoing discussion of Year 2000 issues
                contains forward-looking statements and actual compliance may be
                affected by a number of factors which include the timing and
                compliance by the Partnership's outside vendors and suppliers.



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.


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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<PAGE>   10

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY
(A CALIFORNIA LIMITED PARTNERSHIP)



                                   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.

November 2, 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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