UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended ~~March~~June 3130, 2013

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 number 0-13523

CAPITAL REALTY INVESTORS-IV

LIMITED PARTNERSHIP

(Exact Name of Issuer as Specified in its Charter)



Maryland	52-1328767
(State of Incorporation)	(I.R.S. Employer Identification No.)

11200 Rockville Pike
Rockville, MD	20852
(Address of Principal Executive Offices)	(ZIP Code)

(301) 468-9200

(Issuer’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 þ No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of Accelerated filer and large accelerated filer@ in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company þ

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No þ

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ¨ No þ

The units of limited partner interest of the Registrant are not traded in any market. Therefore, the units of limited partner interest had neither a market selling price nor an average bid or asked price. As of ~~June~~August 314, 2013, the issuer had 73,337 outstanding units of limited partner interest.

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED ~~MARCH~~JUNE 3130, 2013

	Page
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at March 31, 2013 and December 31, 2012	1
Condensed Consolidated Balance Sheets at June 30, 2013 and December 31, 2012	1
Condensed Consolidated Statements of Operations and Accumulated losses for the three months ended March 31, 2013 and 2012	2
Condensed Consolidated Statements of Operations and Accumulated Losses for the three and six months
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012	3
ended June 30, 2013 and 2012	2
Notes to Condensed Consolidated Financial Statement	4
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012	3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Notes to Condensed Consolidated Financial Statements	4
Item 3. Quantitative and Qualitative Disclosure about Market Risk	12
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 4. Controls and Procedures	12
Item 3. Quantitative and Qualitative Disclosure about Market Risk	13
Item 4. Controls and Procedures	14
Part II OTHER INFORMATION
Item 1. Legal Proceedings	II-1
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	II-1
Item 3. Defaults Upon Senior Securities	II-1
Item 4. Mine Safety Disclosures	II-1
Item 5. Other Information	II-1
Item 6. Exhibits	II-1
Signatures	II-2

PART I

ITEM 1. FINANCIAL STATEMENTS

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASSETS

	March 31,		December 31,
	June 30,		December 31,
	2013		2012
Investments in partnerships	$	1,~~251~~183,~~224~~167	$	1,246,665
Cash and cash equivalents	9,~~513~~338,~~178~~277		9,638,145
Acquisition fees, principally paid to related parties,
net of accumulated amortization of $35,157 and $34,844, respectively	14,941		15,254
net of accumulated amortization of $35,470 and $34,844, respectively	14,628		15,254
Property purchase costs,
net of accumulated amortization of $67,672 and $67,421, respectively	11,919		12,170
net of accumulated amortization of $67,923 and $67,421, respectively	11,668		12,170
Total assets	$	10,~~791~~547,~~262~~740	$	10,912,234

LIABILITIES AND PARTNERS’ CAPITAL

Due on investments in partnerships	$	1,340,000		$	1,340,000
Accrued interest payable	7,~~855~~988,~~791~~161			7,723,421
Accounts payable and accrued expenses	6541,~~362~~247			43,946
Total liabilities	9,~~261~~369,~~153~~408			9,107,367
Commitments and contingencies	—			—
Partners' capital
Capital paid-in:
General Partners	2,000			2,000
Limited Partners	73,501,500			73,501,500
	73,503,500			73,503,500
Less:
Accumulated distributions to partners	(30,553,510		)	(30,553,510		)
Offering costs	(7,562,894		)	(7,562,894		)
Accumulated losses	(3334,~~856~~208,~~987~~764		)	(33,582,229		)
Total partners' capital	1,~~530~~178,~~109~~332			1,804,867
Total liabilities and partners' capital	$	10,~~791~~547,~~262~~740		$	10,912,234

The accompanying notes are the integral part of these condensed consolidated financial statements.

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND ACCUMULATED LOSSES

(Unaudited)

	For the three months ended
	For the six months ended						For the three months ended
	March 31,
	June 30,						June 30,
	2013			2012			2013			2012
Share of income from partnerships	$	38,671		$	630,393
Share of income (loss) from partnerships	$	73,836		$	602,585		$	35,165		$	(27,808	)
Other revenue and expenses
Revenue:
Interest	12,~~203~~421			13,~~238~~488			1,218			2,250
Expenses:
Other income	—			45,916			—			45,916
Interest	132,370			124,569
	2,421			49,404			1,218			48,166
Management fee	93,750			93,750
Expenses:
General and administrative	66,265			50,523
Interest	264,740			249,138			132,370			124,569
State tax	7,267			300
Management fee	187,500			187,500			93,750			93,750
Professional fees	14,416			72,650
General and administrative	147,580			104,311			81,315			53,788
Amortization of deferred costs	564			821
State tax	25,829			300			18,562			—
	314,632			342,613
Professional fees	76,015			108,813			61,599			36,163
Total other revenue and (expenses)	(313,429		)	(341,375		)
Amortization of deferred costs	1,128			1,642			564			821
Net (loss) income	(274,758		)	289,018
	702,792			651,704			388,160			309,091
Accumulated losses, beginning of period	(33,582,229		)	(41,526,481		)
Total other revenue and (expenses)	(700,371		)	(602,300		)	(386,942		)	(260,925		)
Accumulated losses, end of period	$	(33,856,987	)	$	(41,237,463	)
Net (loss) income	(626,535		)	285			(351,777		)	(288,733		)
Net (loss) income allocated to General Partners (1.51%)	$	(4,149	)	$	4,364
Accumulated losses, beginning of period	(33,582,229		)	(41,526,481		)	(33,856,987		)	(41,237,463		)
Net (loss) income allocated to Initial and
Accumulated losses, end of period	$	(34,208,764	)	$	(41,526,196	)	$	(34,208,764	)	$	(41,526,196	)
Special Limited Partners (1.49%)	$	(4,094	)	$	4,306
Net (loss) income allocated to General Partners (1.51%)	$	(9,461	)	$	4		$	(5,312	)	$	(4,360	)
Net (loss) income allocated to Additional Limited
Net (loss) income allocated to Initial and
Partners (97%)	$	(266,515	)	$	280,348
Special Limited Partners (1.49%)	$	(9,335	)	$	4		$	(5,241	)	$	(4,302	)
Net (loss) income per unit of Additional Limited Partner
Net (loss) income allocated to Additional
Interest based on 73,337 units outstanding	$	(3.63	)	$	3.82
Limited Partners (97%)	$	(607,739	)	$	277		$	(341,224	)	$	(280,071	)
Net (loss) income per unit of Additional Limited Partner Interest based on
73,337 units outstanding	$	(8.29	)	$	—		$	(4.65	)	$	(3.82	)

The accompanying notes are the integral part of these condensed consolidated financial statements.

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the three months ended
	For the six months ended
	March 31,
	June 30,
	2013			2012
Cash flows from operating activities:
Net (loss) income	$	(~~274~~626,~~758~~535	)	$	~~289,018~~285
Adjustments to reconcile net (loss) income to net cash
used in operating activities:
Share of income from partnerships	(3873,~~671~~836		)	(~~630~~602,~~393~~585		)
Amortization of deferred costs	564			821
Receipt of distributions from partnerships	137,334			597,054
Amortization of deferred costs	1,128			1,642
Changes in assets and liabilities:
Increase in accrued interest payable	~~132~~264,~~370~~740			~~124~~249,~~569~~138
Increase (decrease) in accounts payable and accrued expenses	21,416			(16,809		)
Decrease in accounts payable and accrued expenses	(2,699		)	(6,272		)
Net cash used in operating activities	(~~159~~299,~~079~~868		)	~~(232~~239,~~794~~262		)
Cash flows from investing activities:
Receipt of distributions from partnerships	~~34,112~~—			54,~~364~~767,~~763~~709
Disposition fee paid	—			(70,000		)
Net cash provided by investing activities	~~34,112~~—			54,~~294~~697,~~763~~709
Net (decrease) increase in cash and cash equivalents	(~~124~~299,~~967~~868		)	54,~~061~~936,~~969~~971
Cash and cash equivalents, beginning of period	9,638,145			3,962,648
Cash and cash equivalents, end of period	$	9,~~513~~338,~~178~~277		$	98,~~024~~899,~~617~~619
Cash paid for interest	$	—		$	—

The accompanying notes are the integral part of these condensed consolidated financial statements.

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH~~June 3130, 2013 and 2012

(Unaudited)

1. ORGANIZATION

Capital Realty Investors-IV Limited Partnership (the “Partnership”) is a limited partnership which was formed under the Maryland Revised Uniform Limited Partnership Act on December 7, 1983. The Partnership was formed for the purpose of raising capital by offering and selling limited partnership interests and then investing in limited partnerships ("Local Partnerships"), each of which owns and operates an existing rental housing project which was originally financed and/or operated with one or more forms of rental assistance or financial assistance from the U.S. Department of Housing and Urban Development ("HUD"). The Partnership originally made investments in forty-seven Local Partnerships. As of ~~March~~June 3130, 2013, the Partnership retained investments in three Local Partnerships. These condensed consolidated financial statements include the accounts of one intermediary limited partnership which has invested in one Local Partnership.

The General Partners of the Partnership are C.R.I., Inc. (“CRI”), which is the Managing General Partner, and current and former shareholders of CRI. Services for the Partnership are performed by CRI, as the Partnership has no employees of its own.

2. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q. Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in conformity with US GAAP have been condensed or omitted pursuant to such instructions. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K at December 31, 2012. The balance sheet amounts at December 31, 2012 are compiled from the Partnership's Annual Report on Form 10-K at December 31, 2012.

In the opinion of CRI, the Managing General Partner of the Partnership, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position of the Partnership as of ~~March~~June 3130, 2013, and the results of its operations and its cash flows for the three months ended ~~March~~June 3130, 2013 and 2012. The results of operations for the interim period ended ~~March~~June 3130, 2013 are not necessarily indicative of the results to be expected for the full year.

3. INVESTMENTS IN PARTNERSHIPS

As of ~~March~~June 3130, 2013 and 2012 , the Partnership had limited partnership equity interests in three and four Local Partnerships, respectively, each of which owns an apartment complex.

A schedule of the apartment communities owned by the Local Partnerships at ~~March~~June 3130, 2013 in which the Partnership is invested is provided below:



PROPERTY	CITY	STATE	UNITS
Northridge Park	Salinas	CA	104
Tradewinds	Traverse City	MI	122
Westport Village	Freeport	IL	121

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

~~MARCH~~JUNE 3130, 2013 and 2012

(Unaudited)

Under the terms of the Partnership's investment in each Local Partnership, the Partnership was required to make capital contributions to the Local Partnerships. These contributions were payable in installments upon each Local Partnership achieving specified levels of construction and/or operations. At ~~March~~June 3130, 2013 and 2012, all such capital contributions had been paid to the Local Partnerships.

a. Summarized financial information

Combined statements of operations for the three and four Local Partnerships in which the Partnership was invested as of ~~March~~June 3130, 2013 and 2012, respectively, follow. The combined statements ~~have~~are ~~been~~ compiled ~~based~~from oninformation ~~estimates~~supplied ~~from~~by the ~~audited~~management ~~financial~~agent ~~statements~~ of the Local ~~Partnerships~~Partnership atproperties ~~December 31, 2012~~ and ~~2011, and these estimates~~ are unaudited. The information for each of the periods is presented separately for those Local Partnerships which have investment basis (equity method), and for those Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended). Appended after the combined statements is information concerning the Partnership's share of income from partnerships related to cash distributions recorded as income, and related to the Partnership's share of income from Local Partnerships.

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

~~MARCH~~JUNE 3130, 2013 and 2012

(Unaudited)

~~COMBINED STATEMENTS OF OPERATIONS~~	COMBINED STATEMENTS OF OPERATIONS
~~(Unaudited)~~	(Unaudited)
	For the three months ended
	For the six months ended
	March 31,
	June 30,
	2013									~~2012~~	2012
	Equity Method			Suspended		~~Total~~	Total			~~Equity Method~~	Equity Method		~~Suspended~~	Suspended		~~Total~~	Total
Number of Local Partnerships	1 (a)			2 (b)		3	3			~~1 (a)~~	1 (a)		~~3 (c)~~	3 (c)		4	4
Revenue
Rental	$	~~196~~400,~~897~~090		$	~~453~~903,~~302~~003	$	~~650,199~~$	1,303,093		$	~~192,818~~$	355,677	$	~~1,047,540~~$	2,113,258	$	~~1,240,358~~$	2,468,935
Other	9,~~459~~572			5245,~~979~~527		~~62,438~~	55,099			~~32,721~~	73,221		~~52,825~~	106,427		~~85,546~~	179,648
Total revenue	~~206~~409,~~356~~662			~~506~~948,~~281~~530		~~712,637~~	1,358,192			~~225,539~~	428,898		~~1,100,365~~	2,219,685		~~1,325,904~~	2,648,583
Expenses:
Operating	~~160~~401,~~877~~185			~~309~~692,~~857~~556		~~470,734~~	1,093,741			~~160,773~~	361,143		~~593,592~~	1,167,770		~~754,365~~	1,528,913
Interest	—			8193,~~430~~418		~~81,430~~	93,418			—	—		~~156,185~~	312,370		~~156,185~~	312,370
Depreciation and amortization	31,757			64,821		96,578				31,084			166,280			197,364
Depreciation and
Total expenses	192,634			456,108		648,742				191,857			916,057			1,107,914
amortization	63,513			115,488			179,001				62,168			332,560			394,728
Net income	$	13,722		$	50,173	$	63,895			$	33,682		$	184,308		$	217,990
	464,698			901,462			1,366,160				423,311			1,812,700			2,236,011
Cash distribution	$	9,023		$	25,089	$	34,112			$	—		$	597,054		597,054
Net (loss) income	$	(55,036	)	$	47,068		$	(7,968	)		$	5,587		$	406,985		$	412,572
Cash distribution recorded as income	$	—		$	25,089	$	25,089			$	—		$	597,054		$	597,054
Cash distribution	$	9,022		$	128,312		$	137,334			$	—		$	597,054		$	597,054
Partnership's share of Local
Cash distribution recorded as income	$	—		$	128,312		$	128,312			$	—		$	597,054		$	597,054
Partnership net income	13,582			—		13,582				33,339			—			33,339
Partnership's share of Local
Share of income from partnership	$13,582			$	25,089	$	38,671			$33,339			$	597,054		$	630,393
Partnership net (loss) income	(54,476		)	—			(54,476		)		5,531			—			5,531
(a) Tradewinds
Share of (loss) income from partnership	$(54,476)			$	128,312		$	73,836			$	5,531		$	597,054		$	602,585
(b) Northridge;Westport Village
(c) Fairway Park;Northridge;Westport Village

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

~~MARCH~~JUNE 3130, 2013 and 2012

(Unaudited)

Cash distributions received from Local Partnerships which have investment basis (equity method) are recorded as a reduction of investments in partnerships and as cash receipts on the respective condensed consolidated balance sheets. Cash distributions received from Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended) are recorded as share of income from partnerships on the respective condensed consolidated statements of operations and as cash receipts on the respective condensed consolidated balance sheets. As of March 31, 2013 and 2012, the Partnership's share of cumulative losses to date for two of the three and for three of the four Local Partnerships, respectively, exceeded the amount of the Partnership's investments in those Local Partnerships by $1,206,791 and $1,260,311, respectively. As the Partnership has no further obligation to advance funds or provide financing to these Local Partnerships, the excess losses have not been reflected in the accompanying condensed consolidated financial statements.




	COMBINED STATEMENTS OF OPERATIONS
	(Unaudited)
		For the three months ended
		June 30,
		2013								2012

		Equity Method			Suspended		Total			Equity Method			Suspended		Total

Number of Local Partnerships		1 (a)			2 (b)		3			1 (a)			3 (c)		4

Revenue
Rental		$	203,193		$	903,003	$	1,106,196		$	162,859		$	1,065,718	$	1,228,577
Other		113			45,527		45,640			40,501			64,304		104,805
Total revenue		203,306			948,530		1,151,836			203,360			1,130,022		1,333,382

Expenses:
Operating		240,288			692,556		932,844			200,370			574,178		774,548
Interest		—			93,418		93,418			—			156,185		156,185
Depreciation and
amortization		31,776			115,488		147,264			31,084			166,280		197,364
Total expenses		272,064			901,462		1,173,526			231,454			896,643		1,128,097

Net (loss) income		$	(68,758	)	$	47,068	$	(21,690	)	$	(28,094	)	$	233,379	$	205,285

Cash distribution		$	—		$	103,223	$	103,223		$	—		$	—	$	—

Cash distribution recorded as income		$	—		$	103,223	$	103,223		$	—		$	—	$	—

Partnership's share of Local
Partnership net loss		(68,058		)	—		(68,058		)	(27,808		)	—		(27,808		)

Share of (loss) income from partnership		$	(68,058	)	$	103,223	$	35,165		$	(27,808	)	$	—	$	(27,808	)



(a) Tradewinds
(b) Northridge;Westport Village
(c) Fairway Park;Northridge;Westport Village

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

JUNE 30, 2013 and 2012

(Unaudited)

Cash distributions received from Local Partnerships which have investment basis (equity method) are recorded as a reduction of investments in partnerships and as cash receipts on the respective condensed consolidated balance sheets. Cash distributions received from Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended) are recorded as share of income from partnerships on the respective condensed consolidated statements of operations and accumulated losses and as cash receipts on the respective condensed consolidated balance sheets. As of June 30, 2013 and 2012, the Partnership's share of cumulative losses to date for two of the three and for three of the four Local Partnerships, respectively, exceeded the amount of the Partnership's investments in those Local Partnerships by $1,017,306 and $1,042,753, respectively. As the Partnership has no further obligation to advance funds or provide financing to these Local Partnerships, the excess losses have not been reflected in the accompanying condensed consolidated financial statements.

b. Due on investments in partnerships and accrued interest payable

Purchase money notes

The Partnership executed certain purchase money notes payable as part of the acquisition of its equity interests in certain Local Partnerships. The notes are nonrecourse notes secured by a security interest in the Partnership's interests in the respective Local Partnership. The Partnership's obligations with respect to its investments in Local Partnerships, in the form of nonrecourse purchase money notes having an aggregate principal balance of $1,340,000 plus aggregate accrued interest of $7,~~855~~988,~~791~~161 as of ~~March 31~~June 30, 2013, are payable in full upon the earliest of: (i) sale or refinancing of the respective Local Partnership's rental property; (ii) payment in full of the respective Local Partnership's permanent loan; or (iii) maturity.

The purchase money note related to the following property matured and has not been paid or extended as of ~~March 31~~June 30, 2013.

Property	Principal	Accrued Interest as of ~~March~~June 3130, 2013	Maturity
Westport Village (1)	$840,000	$3,~~195~~224,~~445~~525	9/1/1999

(1) In receivership.

The remaining purchase money note related to Northridge Park matures in 2025. On March 4, 2013, the Local Partnership entered into a purchase and sale agreement to sell Northridge Park. The Partnership is negotiating a discounted payoff of this purchase money note. As there can be no assurance as to the ultimate timing of the sale, no adjustments have been made to the purchase money note balance at ~~March~~June 3130, 2013.

As of ~~March 31~~ June 30, 2013, principal and accrued interest balances were $500,000 and $4,~~660~~763,~~346~~636, respectively.

The purchase money notes, which are nonrecourse to the Partnership, are generally secured by the Partnership's interest in the respective Local Partnerships. There is no assurance that the underlying properties will have sufficient appreciation and equity to enable the Partnership to pay the purchase money notes' principal and accrued interest when due. If a purchase money note is not paid in accordance with its terms, the Partnership will either have to renegotiate the terms of repayment or risk losing its partnership interest in the respective Local Partnership. In the event that a purchase money note remains unpaid upon maturity, the noteholder may have the right to foreclose on the Partnership's interest in the related Local Partnership.

The Partnership's inability to pay certain of the purchase money notes principal and accrued interest balances when due, and the resulting uncertainty regarding the Partnership's continued ownership interest in the related Local Partnerships, does not adversely impact the Partnership's financial condition because the purchase money notes are nonrecourse and secured solely by the Partnership's interest in the related Local Partnerships. Therefore, should the investment in any of the Local Partnerships with matured or maturing purchase money notes not produce sufficient value to satisfy the related purchase money notes, the Partnership's exposure to loss is limited because the amount of the nonrecourse indebtedness of each of the matured or maturing purchase money notes exceeds the carrying amount of the investment in each of the related Local Partnerships. Thus, even a complete loss of the

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

~~MARCH~~JUNE 3130, 2013 and 2012

(Unaudited)

exposure to loss is limited because the amount of the nonrecourse indebtedness of each of the matured or maturing purchase money notes exceeds the carrying amount of the investment in each of the related Local Partnerships. Thus, even a complete loss of the Partnership's interest in these Local Partnerships would not have a material adverse impact on the financial condition of the Partnership.

Interest expense on the Partnership's purchase money notes for the three and six month periods ended ~~March 31~~June 30, 2013 and 2012 was $132,370 and $264,740, respectively, and $124,569 and $249,138, respectively. The accrued interest payable on these purchase money notes of $7,~~855~~988,~~791~~161 and $7,723,421 as of ~~March 31~~June 30, ~~2012~~2013 and December 31, 2012, respectively, is due upon the earliest of: (i) sale or refinancing of the respective Local Partnership's rental property; (ii) payment in full of the respective Local Partnerships' permanent loans; or (iii) maturity.

c. Pending sales

Westport Village

The mortgage loan encumbering the property associated with the Partnership's investment in Westport Village is in default. As of ~~March 31~~June 30, 2013, Westport Village was in receivership pending a foreclosure sale of the property. ~~Accordingly,~~The ~~the~~ Partnership's basis in the Local Partnership, ~~which~~ totaled $0 at both ~~March 31~~June 30, 2013 and December 31, 2012 ~~has been reclassified to investment in partnerships held for sale or transfer in the accompanying condensed consolidated balance sheets~~. There can be no assurance as to the ultimate timing of the foreclosure sale and/or transfer of ownership of the property.

Northridge Park

On March 4, 2013, a purchase and sale agreement was entered into between the Local Partnership that owns Northridge Park and a third party to sell the property for $10,250,000. The Partnership's basis in this Local Partnership at both ~~March~~June 3130, 2013 and December 31, 2012 was $0. ~~The sale is expected to close on or before June 30, 2013.~~

The Partnership has been notified by the Local Partner that the contract for the sale of the Northridge Park property has been amended to provide the buyer additional time to close. It is anticipated that the sale of the Northridge Park property will close in September 2013. However, there can be no assurance that the sale will close by that time or at all.

d. Completed sales

Fairway Park

On October 26, 2012, a purchase and sale agreement was entered into between the Partnership and Morey Acquisition LLC to sell its limited partner interest in the local Partnership that owns the Fairway Park property for $8,710,000. On December 20, 2012, the sale was completed and the Partnership received proceeds of $8,710,000. The Partnership's basis in this Local Partnership at December 31, 2012 was $0. Net acquisition fees and property purchase costs of $8,294 and $4,130, respectively, were written off and netted against the gain on disposition of investment in partnerships during the three months ended December 31, 2012.

From the sale proceeds, the Partnership incurred and paid CRI, Inc. a fee in the amount of $415,560 for services provided in connection with the sale of the limited partnership interest in the Local Partnership. The net gain incurred on the sale was $8,282,016 for the year ended December 31, 2012.

Mary Allen West Tower

On October 13, 2011, the Mary Allen West Tower property was sold. The investment balance at December 31, 2011 was $4,767,709. This represents the distribution the partnership received from the sale of the property . The distribution proceeds were received on February 22, 2012.

From the sale proceeds, the partnership paid CRI, Inc. a fee in the amount of $70,000 for services provided in connection with the sale of the Mary Allen West Tower property. The fee was paid during the quarter ended ~~March~~June 3130, 2012.

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

~~MARCH~~JUNE 3130, 2013 and 2012

(Unaudited)

e. Investment reconciliation

The following is a reconciliation of investments in partnerships at ~~March 31~~June 30, 2013:

Investments in partnerships at December 31, 2012	$	1,246,665
Share of income from partnerships	3873,~~671~~836
Distribution from Local Partnerships	(34137,~~112~~334		)
Investments in partnerships at March 31, 2013	$	1,251,224
Investments in partnerships at June 30, 2013	$	1,183,167

4. RELATED PARTY TRANSACTIONS

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to reimburse the Managing General Partner or its affiliates for certain direct expenses and payroll expenses in connection with managing the Partnership. Payroll expenses are reimbursed at a factor of 1.75 times base salary. For the three and six month periods ended ~~March 31~~June 30, 2013 ~~and 2012~~, the Partnership paid $3126,~~492~~761 and $2458,~~266~~254, respectively and $29,899 and $54,165 for the three and six month periods ended June 30, 2012, respectively, to the Managing General Partner or its affiliates as direct reimbursement of expenses incurred on behalf of the Partnership. In addition, certain employees of the Managing General Partner provided legal and tax accounting services to the Partnership. These are reimbursed comparable to third party service charges. For the three and six month periods ended ~~March 31~~June 30, 2013 ~~and 2012~~, the Partnership paid $2937,~~543~~037 and $66,580, respectively, and $23,689 and $53,888 for the three and six month periods ended June 30,~~198~~ 2012, respectively, to the Managing General Partner or its affiliates for these services. Such reimbursed expenses are included in the accompanying condensed consolidated statements of operations and accumulated losses as general and administrative expenses.

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to pay the Managing General Partner an annual incentive management fee (“Management Fee”) after all other expenses of the Partnership are paid. The Partnership paid the Managing General Partner a Management Fee of $93,750 for each of the three month periods ended ~~March 31~~June 30, 2013 and 2012 and $187,500 for each of the six month periods ended June 30, 2013 and 2012.

In accordance with the terms of the Partnership Agreement, in February 2012, the Managing General Partner paid a disposition fee of $70,000 related to the sale of Mary Allen West Tower, which was netted against the related gain on disposition of investment in partnerships.

5. CASH CONCENTRATION RISK

Financial instruments that potentially subject the Partnership to concentrations of risk consist primarily of cash. The Partnership maintains four cash accounts with SunTrust Bank. As of ~~March 31~~June 30, 2013 , the uninsured portion of the cash balances was $9,~~533~~341,~~724~~587.

6. SIGNIFICANT SUBSIDIARIES

The following Local Partnership invested in by the Partnership represents more than 20% of the Partnership’s total assets or equity as of ~~March 31~~June 30, 2013 and 2012 or net income (loss) for the periods then ended. The following financial information represents the performance of this Local Partnership for the periods ended ~~March 31~~June 30, 2013 and 2012. The financial information is ~~based~~compiled onfrom ~~estimates~~information ~~from~~supplied by the ~~audited~~management ~~financial~~agent ~~statements~~ of the Local Partnership atproperty ~~December 31, 2012~~ and ~~2011~~is ~~and these estimates are~~ unaudited.

Tradewinds Terrace	2013			2012
Total Assets	$	1,~~309~~357,~~370~~586		$	1,~~333~~358,~~958~~573
Total Liabilities	$	53173,~~874~~507		$	9799,~~945~~478
Revenue	$	~~196~~409,~~897~~662		$	~~225~~428,~~538~~898
Net Income	$	13,722		$	33,682
Net (Loss) Income	$	(55,036	)	$	5,588

910

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

~~MARCH~~JUNE 3130, 2013 and 2012

(Unaudited)

7. SUBSEQUENT EVENTS

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying condensed consolidated financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes.

1011

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The Management's Discussion and Analysis of Financial Condition and Results of Operations section is based on the condensed consolidated financial statements, and contains information that may be considered forward looking, including statements regarding the effect of governmental regulations. Actual results may differ materially from those described in the forward looking statements and will be affected by a variety of factors including national and local economic conditions, the general level of interest rates, governmental regulations affecting the Partnership and interpretations of those regulations, the competitive environment in which the Partnership operates, and the availability of working capital.

Critical Accounting Policies

The Partnership has disclosed its selection and application of significant accounting policies in Note 1 of the notes to financial statements included in the Partnership's Annual Report on Form 10-K at December 31, 2012. The Partnership accounts for its investments in partnerships (Local Partnerships) by the equity method because the Partnership is a limited partner in the Local Partnerships. As such the Partnership has no control over the selection and application of accounting policies, or the use of estimates, by the Local Partnerships. Environmental and operational trends, events and uncertainties that might affect the properties owned by the Local Partnerships would not necessarily have a significant impact on the Partnership's application of the equity method of accounting, since the equity method has been suspended for three Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships. The Partnership reviews property assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the estimated future net cash flows expected to be generated by the asset. If an asset were determined to be impaired, its basis would be adjusted to fair value through the recognition of an impairment loss.

Generally accepted accounting principles (GAAP) in the United States provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements and when it should disclose information about its relationship with a VIE. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that will receive a majority of the VIE's expected losses, receive a majority of a VIE's expected residual returns, or both.

The Partnership does not consolidate the Partnership's interests in these VIE's under this guidance, as it is not considered to be the primary beneficiary. Accounting guidance requires continued reconsideration as to the consideration of the primary beneficiary. The Partnership currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the condensed consolidated statements of operations, and discloses how it accounts for material types of these investments in its financial statements.

The Partnership's balance in investment in Local Partnerships represents its maximum exposure to loss. The Partnership's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners.

1112

Financial Condition/Liquidity

The Partnership's liquidity, with unrestricted cash resources of $9,~~513~~338,~~178~~277 along with anticipated future cash distributions from Local Partnerships, is expected to be adequate to meet its current and anticipated operating cash needs.

The Partnership closely monitors its cash flow and liquidity position in an effort to ensure that sufficient cash is available for operating requirements. For the ~~three~~six month period ended ~~March 31~~June 30, 2013, existing cash resources, receipt of distributions from Local Partnerships and sale proceeds received were adequate to support operating cash requirements. Cash and cash equivalents decreased $~~124~~299,~~967~~868 during the ~~three~~six month period ended ~~March 31~~June 30, 2013, primarily due to normal operating expenses.

Results of Operations

The Partnership experienced a net loss for the ~~three~~six month period ended ~~March 31~~June 30, 2013 compared to net income for the ~~three~~six month period ended ~~March~~June 3130, 2012, primarily due to aan ~~decrease~~increase in ~~the~~operating expenses, and decrease in share of income from partnerships.

For financial reporting purposes, the Partnership, as a limited partner in the Local Partnerships, does not record losses from the Local Partnerships in excess of its investment to the extent that the Partnership has no further obligation to advance funds or provide financing to the Local Partnerships. As a result, the Partnership's share of income from partnerships for the three and six month periods ended ~~March 31~~June 30, 2013 ~~and 2012~~ did not include income of $145,418 and $~~180~~47,~~853~~069, respectively, compared to excluded income of $217,564 and $398,417 for the three and six month periods ended June 30, 2012, respectively.

Certain taxing authorities may assert claims against the Partnership for failure to withhold and remit income tax on operating profit or where the sale(s) of property in which the Partnership was invested failed to produce sufficient cash proceeds with which to pay the state withholding tax and/or to pay statutory partnership filing fees. The Partnership is unable to quantify the amount of such potential claims at this time. The Partnership has consistently advised its Partners that they should consult with their tax advisors as to the necessity of filing non-resident returns in such states with respect to their proportional taxes due.

No other significant changes in the Partnership's operations have taken place during the three month period ended ~~March 31~~June 30, 2013.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

None.

ITEM 4. CONTROLS AND PROCEDURES

a) Disclosure Controls and Procedures.

The Partnership's management, with the participation of the principal executive officer and principal financial officer of the Managing General Partner, who are the equivalent of the Partnership's principal executive officer and principal financial officer, respectively, has evaluated the effectiveness of the Partnership's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. A control system, no matter how well conceived and operated, can provide only reasonable assurance that the objectives of the control system are met. Based on such evaluation, the principal executive officer and principal financial officer of the Managing General Partner, who are the equivalent of the Partnership's principal executive officer and principal financial officer, respectively, have concluded that, as of the end of such period, the Partnership's disclosure controls and procedures are not effective to ensure that material information required to be disclosed in the Partnership's periodic report filings with SEC is recorded, processed, summarized and reported within the time frame specified by the SEC's rules and forms, consistent with the definition of "disclosure controls and procedures" under the Securities and Exchange Act of 1934.

b) Changes in Internal Control Over Financial Reporting.

There has been no change in the Partnership's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Partnership's internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

The Partnership is unaware of any pending or outstanding litigation involving it or the underlying investment property of the Local Partnerships in which the Partnership invests that are not of a routine nature arising in the ordinary course of business or that would have a material adverse effect on the business of the Partnership.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

See Note 3.b. of the notes to condensed consolidated financial statements contained in Part I, Item 1, hereof, for information concerning the Partnership's defaults on certain purchase money notes.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

There has not been any information required to be disclosed in a report on Form 8-K during the quarter ended ~~March~~June 3130, 2013, but not reported, whether or not otherwise required by this Form 10-Q at ~~March~~June 3130, 2013.

There is no established market for the purchase and sale of units of limited partner interest (“Units”) in the Partnership, although various informal secondary market services may exist. Due to the limited markets, however, investors may be unable to sell or otherwise dispose of their Units.

ITEM 6. EXHIBITS

Exhibit No. Description

31.1 Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32 Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

All other Items are not applicable.

II-1

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CAPITAL REALTY INVESTORS-IV
		LIMITED PARTNERSHIP
		(Registrant)
June 3, 2013		by: /s/ William B. Dockser
August 14, 2013		by: /s/ William B. Dockser
DATE		William B. Dockser,
		Director, Chairman of the Board
		and Treasurer
		Principal Executive Officer

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

June 3, 2013		by: /s/ H. William Willoughby
August 14, 2013		by: /s/ H. William Willoughby
DATE		H. William Willoughby
		Director, President, Secretary,
		Principal Financial Officer and
		Principal Accounting Officer

II-2

Filing Compare · CAPITAL REALTY INVESTORS IV LIMITED PARTNERSHIP