UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2002 .

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                to                                .

Commission file no. 33-13437

DEL TACO INCOME PROPERTIES IV

a California limited partnership

(Exact name of registrant as specified in its charter)

California	33-0241855
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
23041 Avenida De La Carlota, Laguna Hills, California	92653
(Address of principal executive offices)	(Zip Code)

(949) 462-9300

(Registrant’s telephone number, including area code)

     Indicate by check mark whether the registrant (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 such filing requirements for the past 90 days.  Yes x  No o

TABLE OF CONTENTS

		BALANCE SHEETS
		STATEMENTS OF INCOME
		STATEMENTS OF CASH FLOWS
		NOTES TO FINANCIAL STATEMENTS
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
PART II. OTHER INFORMATION
	Item 6. Exhibits and Reports on Form 8-K
SIGNATURE

INDEX

DEL TACO INCOME PROPERTIES IV

	PAGE NUMBER
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements and Supplementary Data
Balance Sheets at March 31, 2002 (Unaudited) and December 31, 2001		3
Statements of Income for the three months ended March 31, 2002 and 2001 (Unaudited)		4
Statements of Cash Flows for the three months ended March 31, 2002 and 2001 (Unaudited)		5
Notes to Financial Statements		6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K		10
SIGNATURE		11

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DEL TACO INCOME PROPERTIES IV

BALANCE SHEETS

			March 31,			December 31,
			2002			2001
			(Unaudited)
ASSETS
CURRENT ASSETS:
	Cash		$	174,150		$	117,445
	Receivable from General Partner			30,240			111,435
	Deposits			526			400
		Total current assets		204,916			229,280
PROPERTY AND EQUIPMENT, at cost:
	Land and improvements			1,236,700			1,236,700
	Buildings and improvements			1,289,860			1,289,860
	Machinery and equipment			484,789			484,789
				3,011,349			3,011,349
	Less— accumulated depreciation			1,153,245			1,139,428
				1,858,104			1,871,921
			$	2,063,020		$	2,101,201
LIABILITIES AND PARTNERS’ EQUITY
CURRENT LIABILITIES:
	Payable to Limited Partners		$	27,119		$	27,942
	Accounts payable			5,375			9,194
		Total current liabilities		32,494			37,136
OBLIGATION TO GENERAL PARTNER				137,953			137,953
PARTNERS’ EQUITY:
	Limited Partners			1,904,781			1,937,985
	General Partner-Del Taco, Inc.			(12,208	)		(11,873	)
				1,892,573			1,926,112
			$	2,063,020		$	2,101,201

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

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DEL TACO INCOME PROPERTIES IV

STATEMENTS OF INCOME

(Unaudited)

			Three Months Ended
			March 31,
			2002		2001
REVENUES:
	Rent		$	85,194	$	81,228
	Interest			605		1,642
	Other			275		200
				86,074		83,070
EXPENSES:
	General and administrative			21,293		20,229
	Depreciation			13,817		13,817
				35,110		34,046
		Net income	$	50,964	$	49,024
	Net income per limited partnership unit		$	0.31	$	0.29

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

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DEL TACO INCOME PROPERTIES IV

STATEMENTS OF CASH FLOWS

(Unaudited)

			Three Months Ended
			March 31,
			2002			2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	50,964		$	49,024
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation			13,817			13,817
	Decrease in receivable from General Partner			81,195			79,073
	(Increase) decrease in deposits			(126	)		38
	(Decrease) increase in accounts payable and payable to limited partners			(4,642	)		4,963
		Net cash provided by operating activities		141,208			146,915
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners				(84,503	)		(79,443	)
Net increase in cash				56,705			67,472
Beginning cash balance				117,445			108,643
Ending cash balance			$	174,150		$	176,115

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

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DEL TACO INCOME PROPERTIES IV

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2002

NOTE 1 — BASIS OF PRESENTATION

The accompanying financial statements, some of which are unaudited, have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should therefore be read in conjunction with the financial statements and notes thereto contained in the partnership’s annual report on Form 10-K for the year ended December 31, 2001. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the partnership’s financial position at March 31, 2002, the results of operations and cash flows for the three month periods ended March 31, 2002 and 2001 have been included. Operating results for the three months ended March 31, 2002 are not necessarily indicative of the results that may be expected for the year ending December 31, 2002.

NOTE 2 — NET INCOME PER LIMITED PARTNERSHIP UNIT

Net income per limited partnership unit is based upon the weighted average number of units outstanding during the periods presented which amounted to 165,375 in 2002 and 2001.

Pursuant to the partnership agreement, annual partnership income or loss is allocated one percent to the General Partner and 99 percent to the limited partners. Partnership gains from any sale or refinancing will be allocated one percent to the General Partner and 99 percent to the limited partners until allocated gains and profits equal losses, distributions and syndication costs, and until each class of limited partners receive their priority return as defined in the partnership agreement. Additional gains will be allocated 12 percent to the General Partner and 88 percent to the limited partners.

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DEL TACO INCOME PROPERTIES IV

NOTES TO FINANCIAL STATEMENTS — CONTINUED

MARCH 31, 2002

NOTE 3 — LEASING ACTIVITIES

The partnership leases certain properties for operation of restaurants to Del Taco, Inc. on a triple net basis. The leases are for terms of 32 years commencing with the completion of the restaurant facility located on each property and require monthly rentals equal to 12 percent of the gross sales of the restaurants. There is no minimum rental under any of the Leases.

For the three months ended March 31, 2002, the two restaurants operated by Del Taco, for which the partnership is the lessor, had combined, unaudited sales of $422,709 and net income of $25,450 as compared to $417,812 and $23,850, respectively, for the corresponding period in 2001. Net income by restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense. For the three months ended March 31, 2002, the one restaurant operated by a Del Taco franchisee, for which the partnership is the lessor, had unaudited sales of $287,239 as compared with $259,088 during the same period in 2001.

NOTE 4 — TRANSACTIONS WITH DEL TACO

The receivable from the General Partner consists primarily of rent accrued for the month of March. The March rent was collected on April 12, 2002.

Del Taco, Inc. serves in the capacity of general partner in other partnerships which are engaged in the business of operating restaurants, and three other partnerships which were formed for the purpose of acquiring real property in California for construction of Mexican-American restaurants for lease under long-term agreements to Del Taco, Inc. for operation under the Del Taco trade name.

In addition, see Note 5 with respect to certain distributions to the General Partner.

NOTE 5 — DISTRIBUTIONS

On April 18, 2002, a distribution to the limited partners of $140,611, or approximately $.85 per limited partnership unit, was approved. Such distribution was paid April 19, 2002. The General Partner also received a distribution of $1,420 with respect to its 1% partnership interest.

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

Liquidity and Capital Resources

The partnership offered limited partnership units for sale between June 1987 and June 1988. 14.5% of the $4.135 million raised through sale of limited partnership units was used to pay commissions to brokers and to reimburse the General Partner for offering costs incurred. Approximately $3 million of the remaining funds were used to acquire sites and build three restaurants. In February of 1992, approximately $442,000 raised during the offering but not required to acquire sites and build restaurants was distributed to the limited partners.

The three restaurants leased to Del Taco make up almost all of the income producing assets of the partnership. Therefore, the business of the partnership is almost entirely dependent on the success of the Del Taco trade name restaurants that lease the properties. The success of the restaurants is dependent on a large variety of factors, including, but not limited to, consumer demand and preference for fast food, in general, and for Mexican-American food in particular.

Results of Operations

The partnership owns three properties that are under long-term lease to Del Taco for restaurant operations (Del Taco, in turn, has sub-leased one of the restaurants to a Del Taco franchisee).

The following table sets forth rental revenue earned by restaurant:

		Three Months Ended
		March 31,
		2002		2001
Orangethorpe Ave., Placentia, CA		$	33,620	$	33,130
Lakeshore Drive, Lake Elsinore, CA			34,469		31,091
Highland Ave., San Bernardino, CA			17,105		17,007
	Total	$	85,194	$	81,228

The partnership receives rental revenues equal to 12 percent of gross sales from the restaurants. The partnership earned rental revenue of $85,194 during the three month period ended March 31, 2002, which represents an increase of $3,966 from 2001. The increase in rental revenue was caused by an increase in sales at the restaurants under lease.

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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations — continued

The following table breaks down general and administrative expenses by type of expense:

	Percentage of Total
	General & Administrative Expense
	Three Months Ended
	March 31,
	2002			2001
Accounting fees		71.92	%		76.87	%
Distribution of information to Limited Partners		28.08			23.13
		100.00	%		100.00	%

General and administrative costs increased from 2001 to 2002 due to increased costs for the annual audit and income tax preparation and the additional costs incurred in 2002 to lease new software.

For the three months ended March 31, 2002, net income increased by $1,940 from 2001 to 2002 due to the increase in revenues of $3,004, which was partially offset by the $1,064 increase in general and administrative expenses.

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PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

(b) No reports on Form 8-K were filed during the three months ended March 31, 2002.

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SIGNATURE

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.

DEL TACO INCOME PROPERTIES IV
(a California limited partnership)
Registrant


Del Taco, Inc.
General Partner

Date: May 1, 2002  /s/   Robert J. Terrano Robert J. Terrano
Executive Vice President,
Chief Financial Officer

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