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 ~~June~~September 30, 2011

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 x No o

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

Large accelerated filer o Accelerated filer o

Non-accelerated filer (Do not check if a smaller reporting company) o Smaller reporting company x

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

Yes o No x

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

INDEX TO FORM 10-Q

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2011

		Page
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets
	- June 30, 2011 and December 31, 2010	1
	- September 30, 2011 and December 31, 2010	1
	Consolidated Statements of Operations and Accumulated Losses
	- for the three and six months ended June 30, 2011 and 2010	2
	- for the three and nine months ended September 30, 2011 and 2010	2
	Consolidated Statements of Cash Flows
	- for the six months ended June 30, 2011 and 2010	3
	- for the nine months ended September 30, 2011 and 2010	3
	Notes to Financial Statements
	- June 30, 2011 and 2010	4
	- September 30, 2011 and 2010	4
Item 2.	Management's Discussion and Analysis of Financial Condition	1113
	and Results of Operations
Item 4.	Controls and Procedures	1214
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	1315
Item 5.	Other Information	1315
Item 6.	Exhibits	1316
Signature		1417

Part I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONSOLIDATED BALANCE SHEETS

ASSETS

(Unaudited)

	June 30,		December 31,
	September 30,		December 31,
	2011		2010
Investments in partnerships	$	1,~~110~~167,~~918~~391	$	1,058,968
Investment in partnerships held for sale or transfer		2,~~589~~709,~~786~~281		2,348,551
Cash and cash equivalents		4,~~006~~099,~~062~~434		4,359,494
Acquisition fees, principally paid to related parties,
net of accumulated amortization of $51,296 and $50,324, respectively		26,463		27,435
net of accumulated amortization of $51,782 and $50,324, respectively		25,977		27,435
Property purchase costs,
net of accumulated amortization of $74,781 and $74,111, respectively		18,311		18,981
net of accumulated amortization of $75,116 and $74,111, respectively		17,976		18,981
Other assets		~~324,725~~529		2,911
Total assets	$	8,~~076~~020,~~265~~588	$	7,816,340

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Due on investments in partnerships	$	1,340,000		$	1,340,000
Accrued interest payable		67,~~990~~107,~~431~~788			6,755,717
Accounts payable and accrued expenses		~~111~~59,~~924~~547			87,985
Total liabilities		8,~~442~~507,~~355~~335			8,183,702
Commitments and contingencies
Partners' capital (deficit):
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		(23,219,810	)		(23,219,810	)
Offering costs		(7,562,894	)		(7,562,894	)
Accumulated losses		(43,~~086~~207,~~886~~543	)		(43,088,158	)
Total partners' capital (deficit)		(~~366~~486,~~090~~747	)		(367,362	)
Total liabilities and partners' capital (deficit)	$	8,~~076~~020,~~265~~588		$	7,816,340

The accompanying notes are an integral part

of these consolidated financial statements.

- 1 -

Part I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF OPERATIONS

AND ACCUMULATED LOSSES

(Unaudited)

	For the three months ended						For the ~~six~~nine months ended
	June 30,						June 30,
	September 30,						September 30,
	2011			2010			2011			2010
Share of income from partnerships	$	~~461~~175,~~731~~968		$	~~192~~122,~~291~~703		$	~~708~~884,~~735~~703		$	~~283~~237,~~043~~935
Other revenue and expenses:
Revenue:
Interest		32,~~496~~485			~~7,642~~--			57,~~204~~689			13,653
		3,496			7,642			5,204			13,653
Gain on disposition of investment in
partnerships, net of disposition fee		--			554,825			--			1,603,593
Expenses:
General and administrative		8357,~~739~~838			9457,~~455~~944			~~139~~197,~~986~~825			~~200~~258,~~723~~667
Interest		117,357			~~165~~81,~~515~~609			~~234~~352,~~714~~071			~~331~~244,~~030~~828
Management fee		93,750			93,750			~~187~~281,~~500~~250			~~187~~281,~~500~~250
Professional fees		3329,~~689~~344			3012,~~750~~213			~~148~~178,~~825~~168			~~139~~151,~~000~~213
Amortization of deferred costs		821			~~1,014~~628			12,~~642~~463			2,~~027~~656
		329,356			385,484			712,667			860,280
		299,110			246,144			1,011,777			938,614
Total other revenue and expenses		(~~325~~296,~~860~~625	)		(~~377~~246,~~842~~144	)		(~~707~~1,~~463~~004,088	)		(~~846~~924,~~627~~961	)
Income (loss) before gain on disposition
Loss from operations		(120,657	)		(123,441	)		(119,385	)		(687,026	)
of investment in partnership		135,871			(185,551	)		1,272			(563,584	)
Gain on disposition of investment in
Net income		135,871			369,274			1,272			1,040,009
partnerships, net of disposition fee		--			--			--			1,603,594
Accumulated losses, beginning of period		(43,222,757	)		(49,680,576	)		(43,088,158	)		(50,351,311	)
Gain from extinguishment of debt		--			6,368,609			--			6,368,609
Accumulated losses, end of period	$	(43,086,886	)	$	(49,311,302	)	$	(43,086,886	)	$	(49,311,302	)
Net (loss) income		(120,657	)		6,245,168			(119,385	)		7,285,177
Net income allocated
Accumulated losses, beginning of period		(43,086,886	)		(49,311,302	)		(43,088,158	)		(50,351,311	)
to General Partners (1.51%)	$	2,052		$	5,576		$	19		$	15,704
Accumulated losses, end of period	$	(43,207,543	)	$	(43,066,134	)	$	(43,207,543	)	$	(43,066,134	)
Net income allocated
Net (loss) income allocated
to General Partners (1.51%)	$	(1,822	)	$	94,302		$	(1,803	)	$	110,006
Net (loss) income allocated
to Initial and Special
Limited Partners (1.49%)	$	2(1,~~024~~798	)	$	593,~~502~~053		$	19(1,779	)	$	15108,~~496~~549
Net income allocated
Net (loss) income allocated
to Additional Limited Partners (97%)	$	~~131~~(117,~~795~~037	)	$	~~358~~6,~~196~~057,813		$	1(115,~~234~~803	)	$	17,~~008.809~~066,622
Net income per unit of
Net (loss) income per unit of
Additional Limited Partner Interest,
based on 73,337 units outstanding	$	(1.8560	)	$	482.8860		$	(1.0258	)	$	1396.7636

The accompanying notes are an integral part

of these consolidated financial statements.

- 2 -

Part I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the six months ended
	For the nine months ended
	June 30,
	September 30,
	2011			2010
Cash flows from operating activities:
Net income	$	1,272		$	1,040,009
Net (loss) income	$	(119,385	)	$	7,285,177
Adjustments to reconcile net income to net cash
Adjustments to reconcile net (loss) income to net cash
used in operating activities:
Share of income from partnerships		(~~708~~884,~~735~~703	)		(~~283~~237,~~043~~935	)
Gain from extinguishment of debt		--			(6,368,609	)
Gain on disposition of investment in partnerships,
net of disposition fees		--			(1,603,~~593~~594	)
Amortization of deferred costs		12,~~642~~463			2,~~027~~656
Changes in assets and liabilities:
Decrease in other assets		12,~~588~~382			--
Increase in accrued interest payable		~~234~~352,~~714~~071			~~331~~364,~~030~~120
Increase in accounts payable and accrued expenses		23,939			49,097
(Decrease) increase in accounts payable and accrued expenses		(28,438	)		22,709
Net cash used in operating activities		(~~445~~675,~~580~~610	)		(~~464~~535,~~473~~476	)
Cash flows from investing activities:
Receipt of distributions from partnerships		92415,~~148~~550			~~128~~3,~~932~~161
Proceeds from disposition of investment in partnerships		--			1,~~133~~688,~~343~~168
Disposition fee paid to a related party		--			(77,500	)
Net cash provided by investing activities		92415,~~148~~550			1,~~184~~613,~~775~~829
Net (decrease) increase in cash and cash equivalents		(353,432	)		720,302
Cash flows from financing activities:
Distribution paid to Limited Partners		--			(2,200,110	)
Net cash used in financing activities		--			(2,200,110	)
Net decrease in cash and cash equivalents		(260,060	)		(1,121,757	)
Cash and cash equivalents, beginning of period		4,359,494			5,660,470
Cash and cash equivalents, end of period	$	4,~~006~~099,~~062~~434		$	64,~~380~~538,~~772~~713
Significant non-cash activities:
Distribution receivable included in investment
in partnerships	$	323,402		$	--

The accompanying notes are an integral part

of these consolidated financial statements.

- 3 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(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 ~~June~~September 30, 2011, the Partnership retained investments in ~~six~~five Local Partnerships.

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 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, 2010.

In the opinion of CRI, the Managing General Partner of the Partnership, the accompanying unaudited 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 ~~June~~September 30, 2011, and the results of its operations and its cash flows for the three and ~~six~~nine month periods ended ~~June~~September 30, 2011 and 2010. The results of operations for the interim period ended ~~June~~September 30, 2011, are not necessarily indicative of the results to be expected for the full year.

3. INVESTMENTS IN PARTNERSHIPS

At ~~June~~September 30, 2011 and 2010, the Partnership had limited partnership equity interests in ~~six~~ five and ~~seven~~six Local Partnerships, respectively, each of which owns an apartment complex.

- 4 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

A schedule of the apartment communities owned by the Local Partnerships in which the Partnership is invested is, or has been, provided below:

PROPERTY	CITY	STATE	UNITS
Fairways	Naperville	IL	210
Madison Square	Grand Rapids	MI	133 (a)
Mary Allen Tower West	Galesburg	IL	154
Northridge Park	Salinas	CA	104
Pilgrim Tower East	Pasadena	CA	158 (ab)
Tradewinds	Traverse City	MI	122
Westport Village	Freeport	IL	121

____________________

(a) ~~Sold~~Deed in ~~2010~~lieu of foreclosure on March 21, 2011

~~Under~~(b) ~~the~~Sold ~~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 June 30, 2011 and 2010~~, all such capital contributions had been paid to the Local Partnerships.~~

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 September 30, 2011 and 2010, all such capital contributions had been paid to the Local Partnerships.

a. Summarized financial information

Combined statements of operations for the ~~six~~five and ~~seven~~six Local Partnerships in which the Partnership was invested as of ~~June~~September 30, 2011 and 2010, respectively, follow. The combined statements have been compiled from information supplied by the management agents of the Local Partnership properties and 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.

- 5 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

COMBINED STATEMENTS OF OPERATIONS

(Unaudited)

	For the three months ended
	June 30,
	September 30,
	2011						2010
	Equity	~~Equity~~					Equity	~~Equity~~
	Method	~~Method~~		Suspended	~~Suspended~~		Method	~~Method~~		Suspended	~~Suspended~~
Number of Local Partnerships		2	(a)		3	(b)		2	(a)		54	(c)
Revenue:
Rental	$	~~462~~420,~~745~~884		$	1,~~104~~049,~~215~~851		$	~~442~~411,~~950~~155		$	1,~~530~~309,~~000~~694
Other		4471,~~023~~072			3966,~~655~~653			921,~~915~~024			5818,~~845~~189
Total revenue		~~506~~491,~~768~~956			1,~~143~~116,~~870~~504			~~452~~432,~~865~~179			1,~~588~~327,~~845~~883
Expenses:
Operating		~~297~~265,~~214~~705			~~519~~596,~~090~~274			~~242~~270,~~638~~154			1949,~~017,322~~740
Interest		--			175,767			592			~~406~~323,~~179~~608
Depreciation and amortization		47,268			207,418			79,331			~~337~~259,~~830~~078
Total expenses		~~344~~312,~~482~~973			~~902~~979,~~275~~459			~~322~~350,~~561~~077			1,~~761~~532,~~331~~426
Net income (loss)	$	~~162~~178,~~286~~983		$	~~241~~137,~~595~~045		$	~~130~~82,~~304~~102		$	(~~172~~204,~~486~~543	)
Cash distribution (return of distribution)	$	--		$	(20,933	)	$	--		$	63,304
Cash distribution recorded
Cash distribution recorded
as income	$	--		$	--		$	--		$	42,040
as income	$	--		$	302,469		$	--		$	63,304
Partnership's share of Local
Partnership net income		159,262			--			128,987			--
Share of income from partnerships		$461,731						$192,291

Partnership's share of Local Partnership net income	175,968	--	80,663	--

Share of income from partnerships	$175,968		$122,703

- 6 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

COMBINED STATEMENTS OF OPERATIONS

(Unaudited)

For the six months ended

For the nine months ended

June 30,

September 30,

2011

2010

Equity

Method

Suspended

Method

Suspended

Number of Local Partnerships

(a)

(b)

(a)

(c)

Revenue:

Rental

~~901~~1,~~614~~322,497

23,~~091~~141,~~467~~318

~~833~~1,~~757~~244,912

3,~~240~~596,~~572~~528

Other

75147,~~989~~060

96163,~~733~~386

3859,~~007~~031

~~114~~121,~~757~~039

Total revenue

~~977~~1,~~603~~469,557

23,~~188~~304,~~200~~704

~~871~~1,~~764~~303,943

3,~~355~~717,~~329~~567

Expenses:

Operating

~~584~~850,~~428~~133

1,~~124~~720,~~107~~381

~~551~~822,~~861~~015

2,~~099~~422,~~755~~670

Interest

~~351~~527,~~534~~302

1,~~183~~775

~~812~~970,~~358~~823

Depreciation and amortization

94141,~~536~~803

~~414~~622,~~836~~253

~~158~~237,~~662~~993

~~675~~777,~~661~~235

Total expenses

~~678~~991,~~964~~936

12,~~890~~869,~~477~~936

~~711~~1,~~706~~061,783

34,~~587~~170,~~774~~728

Net income (loss)

~~298~~477,~~639~~621

~~297~~434,~~723~~768

~~160~~242,~~058~~160

(~~232~~453,~~445~~161

)

Cash distribution

415,550

~~124~~203,~~602~~833

Cash distribution recorded as income

415,550

~~124,602~~--

Partnership’s share of Local

Partnership net income

293,185

158,441

Share of income from partnerships

$708,735

$283,043

Partnership's share of Local Partnership net income	469,153	--	237,935	--

Share of income from partnerships	$884,703		$237,935

____________________

(a) Mary Allen Tower West; Tradewinds

(b) Fairway Park; Northridge; Westport Village

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 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 consolidated statements of operations and as cash receipts on the respective consolidated balance sheets. As of ~~June~~September 30, 2011 and 2010, the Partnership's share of cumulative losses to date for three of the ~~six~~five and for ~~five~~four of the ~~seven~~six Local Partnerships, respectively, exceeded the amount of the Partnership's investments in those Local Partnerships by $1,~~844~~711,~~648~~227 and $7,~~022~~047,~~227~~450, 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 consolidated financial statements.

- 7 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

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 $67,~~990~~107,~~431~~788 as of ~~June~~September 30, 2011, 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.

Effective July 15, 2010, the Partnership’s interest in Pilgrim Tower East was transferred to the purchase money noteholder and or its affiliates or assignees.

Property	Principal	Date	Disposition
Pilgrim Tower East	$1,450,000 (1)	July 2010	Transfer

(1) Remaining principal, after a partial payment.

The purchase money note related to the following property matured and has not been paid or extended as of ~~June~~September 30, 2011.

		Accrued Interest
		as of
Property	Principal	~~June~~September 30, 2011	Maturity
Westport Village (1)	$840,000	$23,~~991~~020,~~885~~965	09/01/99

(1) In receivership.

The remaining purchase money note related to Northridge Park matures in 2025. As of ~~June~~September 30, 2011, principal and accrued interest balances were $500,000 and $34,~~998~~086,~~546~~823, respectively.

- 8 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

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 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~~nine month periods ended ~~June~~September 30, 2011, was $117,357 and $~~234~~352,~~714~~071, respectively, and $~~165~~81,~~515~~609 and $~~331~~244,~~030~~828 for the three and ~~six~~nine month periods ended ~~June~~September 30, 2010, respectively. The accrued interest payable on these purchase money notes of $67,~~990~~107,~~431~~788 and $6,755,717 as of ~~June~~September 30, 2011 and December 31, 2010, 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. Assets held for sale or transfer

Westport Village

The mortgage loan encumbering the property associated with the Partnership’s investment in Westport Village is in default. As of ~~June~~September 30, 2011, Westport Village was in receivership pending a foreclosure sale of the property. Accordingly, the Partnership’s basis in the Local Partnership, which totaled $0 at both ~~June~~September 30, 2011 and December 31, 2010, has been reclassified to investment in partnerships held for sale or transfer in the accompanying 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.

- 9 -

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS – Continued

Mary Allen Tower West

On May 12, 2010, a contract for the sale of the Mary Allen Tower West property was executed. The ~~agreement~~sale ~~has~~was ~~been~~completed ~~amended to provide for a closing~~ on orOctober ~~before September 12~~13, 2011. Due to the ~~possible~~subsequent sale of the property related to Mary Allen Tower West, the Partnership’s basis in the Local Partnership of $2,~~589~~709,~~786~~281 at ~~June~~September 30, 2011, which includes net unamortized acquisition fees and purchase property costs, which totaled $10,896 as of ~~June~~September 30, 2011, and as of December 31, 2010, has been reclassified to investment in partnerships held for sale or transfer on the accompanying consolidated balance sheet. ~~There~~See isNote no7 ~~assurance~~– ~~that~~Subsequent ~~the sale of the property will occur~~Event.

Madison Square

As of March 21, 2011, the Local Partnership delivered the Deed in Lieu of Foreclosure to the Michigan State Housing Development Authority in satisfaction of the mortgage. The transaction is expected to result in no gain or loss on disposition of investment in partnerships for financial statement purposes.

d. Completed sales

Hale Ohana

On March 15, 2008 the Local Partnership entered into a contract with a third party to sell its property for approximately $3,875,000. The sale was completed on March 15, 2010. The sale resulted in gain on disposition of investment in partnerships for financial statement purposes of $1,603,~~593~~594 in 2010 ($1,048,768 recognized in the period ended March 31, 2010 and $554,825 recognized in the period ended ~~June~~September 30, 2010) and a gain of $2,217,581 for federal tax purposes. As of ~~June~~September 30, 2011, the Partnership’s share of cash proceeds from sale has been received. In accordance with the terms of the Partnership Agreement, in March 2010, the Managing General Partner was paid a disposition fee or $77,500 related to the sale. The fee was netted against the related gain on disposition of investment in partnerships.

Pilgrim Tower East

Effective July 15, 2010, the Partnership’s interest in Pilgrim Tower East was transferred to the purchase money noteholder as satisfaction of the note. As of July 15, 2010, the principal and accrued interest balances were $1,450,000 and $4,944,423, respectively. The sale resulted in gain from extinguishment of debt for financial statement purposes of $6,368,609 in 2010 and a gain of approximately $7,653,565 for federal tax purposes.

Madison Square

As of March 21, 2011, the Local Partnership delivered the Deed in Lieu of Foreclosure to the Michigan State Housing Development Authority in satisfaction of the mortgage. The transaction resulted in no gain or loss on disposition of investment in partnerships for financial statement purposes.

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CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~June~~September 30, 2011 and 2010

(Unaudited)

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~~nine month periods ended ~~June~~September 30, 2011, the Partnership paid $3933,~~072~~516 and $78112,~~654~~170, respectively, and $4340,~~323~~244 and $91131,~~227~~471 for the three and ~~six~~nine month periods ended ~~June~~September 30, 2010, 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~~nine month periods ended ~~June~~September 30, 2011, the Partnership paid $2912,~~772~~580 and $5062,~~244~~823, respectively, and $3834,~~700~~152 and $5186,~~983~~135 for the three and ~~six~~nine month periods ended ~~June~~September 30, 2010, respectively, to the Managing General Partner or its affiliates for these services. Such reimbursed expenses are included in the accompanying consolidated statements of operations 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 ~~June~~September 30, 2011 and 2010 and $~~187~~281,~~500~~250 for each of the ~~six~~nine month periods ended ~~June~~September 30, 2011 and 2010.

In accordance with the terms of the Partnership Agreement, in March 2010, the Managing General Partner was paid a disposition fee of $77,500 related to the sale of Hale Ohana, which was netted against the related gain on disposition of investment in partnerships.

5. CASH DISTRIBUTIONS

On July 30, 2010, the Partnership paid a cash distribution of $2,200,110 ($30 per unit) to the Limited Partners who were holders of record as of July 1, 2010.

6. CASH CONCENTRATION RISK

Financial instruments that potentially subject the Partnership to concentrations of risk consist primarily of cash. The Partnership maintains three cash accounts with SunTrust Bank. As of ~~June~~September 30, 2011, the uninsured portion of the cash balances was $1,~~755~~757,~~184~~669.

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Part I.	FINANCIAL INFORMATION
Item 2.	Mangement's Discussion and Analysis
	of Financial Condition and Results of Operations

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2011 and 2010

(Unaudited)

7. SUBSEQUENT EVENT

On May 12, 2010, Galesburg Housing Partners entered into a Purchase and Sale Agreement with 121 West Simmons Street LLC, an affiliate of the Local Partnership’s managing partner, to sell the Mary Allen West property for three million five hundred thousand dollars ($3,500,000). On October 13, 2011 Mary Allen West was sold. The sales proceeds are being held in escrow by the Local Partnership until the expiration of the representations and warranties period provided in the agreement (90 days) at which time the sale proceeds, barring a breach of the representations and warranties, if any, will be distributed to the partners of the Local Partnership in accordance with its Partnership Agreement. The sale is expected to result in a gain for financial statement purposes of $251,813 and a gain of approximately $2,961,000 for federal tax purposes. From the sale proceeds, the Partnership is obligated to pay CRI, Inc. a fee in the amount of $70,000 for services provided in connection with the sale of the Mary Allen West property.

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Part I.	FINANCIAL INFORMATION
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 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 consolidated financial statements included in the Partnership’s annual report on Form 10-K at December 31, 2010. 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 ~~four~~three Local Partnerships which have cumulative losses in excess of the amount of the Partnership’s investments in those Local Partnerships.

Financial Condition/Liquidity

The Partnership's liquidity, with unrestricted cash resources of $4,~~006~~099,~~062~~434, along with anticipated future cash distributions from Local Partnerships, is expected to be adequate to meet its current and anticipated operating cash needs. As of ~~August~~December 265, 2011, there were no material commitments for capital expenditures.

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 ~~six~~nine month period ended ~~June~~September 30, 2011, 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 $~~353~~260,~~432~~060 during the ~~six~~nine month period ended ~~June~~September 30, 2011, primarily due to ongoing operating costs.

Results of Operations

The Partnership’s had a net ~~income~~loss for the three month period ended ~~June~~September 30, 2011 ~~decreased~~ compared to net income in 2010, primarily due to the gain from extinguishment of debt related to the ~~sale~~transfer of ~~Hale~~the ~~Ohana~~ownership of Pilgrim Tower East in 2010. The Partnership’s ~~had~~ net ~~income~~loss from ~~continuing~~ operations for the three months ended ~~June~~September 30, 2011 decreased compared to ~~a net loss in~~ 2010 primarily due to ~~the~~an increase in share of income from partnerships ~~and~~partially aoffset ~~reduction~~by an increase in interest expense and professional fees.

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Part I.	FINANCIAL INFORMATION
Item 2.	~~Mangement~~Management's Discussion and Analysis of Financial Condition
	of Financial Condition and Results of Operations - Continued
	and Results of Operations - Continued

The Partnership’s had a net ~~income~~loss for the ~~six~~nine month period ended ~~June~~September 30, 2011 ~~decreased~~ compared to net income in 2010, primarily due to the gain related to the sale of Hale Ohana and the gain from extinguishment of debt related to the transfer of ownership interests in Pilgrim Tower East in 2010. The Partnership’s net loss from operations for the nine months ended September 30, 2011 decreased compared to 2010 primarily due to the increase of share of income from partnerships and a reduction in general and administrative expenses, however, interest expense and professional fees increased in 2011 when compared to 2010.

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~~nine month periods ended ~~June~~September 30, 2011 did not include losses of $729,~~568~~812 and $2554,~~109~~921, respectively, compared to excluded losses of $~~293~~266,~~891~~800 and $~~363~~640,~~656~~306 for the three and ~~six~~nine month periods ended ~~June~~September 30, 2010, 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 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 ~~June~~September 30, 2011.

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~~were not effective atas a ~~reasonable~~result ~~assurance~~of ~~level~~insufficient accounting systems and processes in place to ensure timely reports. We are currently in the process of the remediation of the weakness in our internal control over financial reporting by the employment of a consultant with the requisite accounting expertise to resolve the above issue and expect to implement changes in the near term.

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Part I.	FINANCIAL INFORMATION
Item 4.	Controls and Procedures - Continued

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.

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Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings

Part II.	OTHER INFORMATION
Item 1.	Legal Proceedsings

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 3.

Defaults upon Senior Securities

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

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 ~~June~~September 30, 2011, but not reported, whether or not otherwise required by this Form 10-Q at ~~June~~September 30, 2011.

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.

On March 31, 2011, the Partnership issued a press release regarding a “mini-tender offer” commenced by MacKenzie Patterson Fuller, LP for up to 2.8% of the Units in the Partnership, including those already owned by the offeror and its affiliates.

~~Item~~- 6.15 ~~Exhibits~~-

Part II.	OTHER INFORMATION
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.

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SIGNATURE

In accordance with the requirements 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
		CAPITAL REALTY INVESTORS-IV
	PARTNERSHIP
		LIMITED PARTNERSHIP
	~~(Registrant)~~	(Registrant)
	by: C.R.I., Inc.
		by:	C.R.I., Inc.
	~~Managing General Partner~~		Managing General Partner
August 26, 2011	by: /s/ H. William Willoughby
January 6, 2012			by:	/s/ H. William Willoughby
DATE	~~H. William Willoughby~~	H. William Willoughby
	Director, President, Secretary,
	Principal Financial Officer and
	Principal Account Officer

-Director, 15President, -Secretary, Principal Financial Officer and Principal Accounting Officer

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Filing Compare · CAPITAL REALTY INVESTORS IV LIMITED PARTNERSHIP