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 September 30, 2012

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 ¨

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 NINE MONTHS ENDED SEPTEMBER 30, 2012

		Page

Part I	FINANCIAL INFORMATION

Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets
	- September 30, 2012 and December 31, 2011	1
	Condensed Consolidated Statements of Operations and Accumulated Losses
	- for the three and nine months ended September 30, 2012 and 2011	2
	Condensed Consolidated Statements of Cash Flows
	- for the nine months ended September 30, 2012 and 2011	3
	Notes to Condensed Consolidated Financial Statements
	- September 30, 2012 and 2011	4

Item 2.	Management's Discussion and Analysis of Financial Condition	14
	and Results of Operations

Item 4.	Controls and Procedures	16


Part II	OTHER INFORMATION

Item 1.	Legal Proceedings	16

Item 3.	Defaults upon Senior Securities	16

Item 5.	Other Information	17

Item 6.	Exhibits	17

Signature		18

Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASSETS

	September 30,		December 31,
	2012		2011

Investments in partnerships	$	1,200,632	$	1,192,336
Investment in partnerships held for sale or transfer		-		4,767,709
Cash and cash equivalents		8,863,783		3,962,648
Acquisition fees, principally paid to related parties,
net of accumulated amortization of $53,726 and $52,268 respectively		24,033		25,491
Property purchase costs,
net of accumulated amortization of $76,456 and $75,451 respectively		16,636		17,641

Total assets	$	10,105,084	$	9,965,825

LIABILITIES AND PARTNERS' CAPITAL


Due on investments in partnerships	$	1,340,000		$	1,340,000
Accrued interest payable		7,598,852			7,225,145
Accounts payable and accrued expenses		137,069			206,365

Total liabilities		9,075,921			8,771,510

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		(23,219,810	)		(23,219,810	)
Offering costs		(7,562,894	)		(7,562,894	)
Accumulated losses		(41,691,633	)		(41,526,481	)

Total partners' capital		1,029,163			1,194,315

Total liabilities and partners' capital	$	10,105,084		$	9,965,825

The accompanying notes are an integral part

of these condensed consolidated financial statements.

-1-

Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND ACCUMULATED LOSSES

(Unaudited)

	For the nine months ended						For the three months ended
	September 30,						September 30,
	2012			2011			2012			2011

Share of income from partnerships	$	782,530		$	884,703		$	179,945		$	175,968

Other revenue and expenses

Revenue:
Interest		7,733			7,689			4,245			2,485
Other Income		50,916			-			5,000			-
		58,649			7,689			9,245			2,485

Expenses:
Interest		373,707			352,071			124,569			117,357
Management fee		281,250			281,250			93,750			93,750
General and administrative		177,153			188,060			72,842			49,774
State tax		300			9,765			-			8,064
Professional fees		171,458			178,169			62,645			29,344
Amortization of deferred costs		2,463			2,463			821			821
		1,006,331			1,011,777			354,627			299,110

Total other revenue and (expenses)		(947,682	)		(1,004,088	)		(345,382	)		(296,625	)


Net loss	$	(165,152	)	$	(119,385	)	$	(165,437	)	$	(120,657	)

Accumulated losses, beginning of period		(41,526,481	)		(43,088,158	)		(41,526,196	)		(43,086,886	)

Accumulated losses, end of period	$	(41,691,633	)	$	(43,207,543	)	$	(41,691,633	)	$	(43,207,543	)


Net loss allocated to General Partners (1.51%)	$	(2,494	)	$	(1,803	)	$	(2,499	)	$	(1,822	)

Net loss allocated to Initial and
Special Limited Partners (1.49%)	$	(2,461	)	$	(1,779	)	$	(2,465	)	$	(1,798	)

Net loss allocated to
Additional Limited Partners (97%)	$	(160,197	)	$	(115,803	)	$	(160,474	)	$	(117,037	)

Net loss per unit of Additional Limited Partner
Interest based on 73,337 units outstanding	$	(2.18	)	$	(1.58	)	$	(2.19	)	$	(1.60	)

The accompanying notes are an integral part

of these condensed consolidated financial statements.

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Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the nine months ended
	September 30,
	2012			2011


Cash flows from operating activities:
Net loss	$	(165,152	)	$	(119,385	)

Adjustments to reconcile net income to net cash
used in operating activities:
Share of income from partnerships		(782,530	)		(884,703	)
Amortization of deferred costs		2,463			2,463


Changes in assets and liabilities:
Decrease in other assets		-			2,382
Increase in accrued interest payable		373,707			352,071
Increase (decrease) in accounts payable
and accrued expenses		704			(28,438	)

Net cash used in operating activities		(570,808	)		(675,610	)

Cash flows from investing activities:
Receipt of distributions from partnerships		5,541,943			415,550
Disposition fee paid		(70,000	)		-

Net cash provided by investing activities		5,471,943			415,550


Net increase (decrease) in cash and cash equivalents		4,901,135			(260,060	)

Cash and cash equivalents, beginning of year		3,962,648			4,359,494

Cash and cash equivalents, end of year	$	8,863,783		$	4,099,434

The accompanying notes are an integral part

of these condensed consolidated financial statements.

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CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(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 September 30, 2012, the Partnership retained investments in four Local Partnerships. These 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, 2011.

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 September 30, 2012, and the results of its operations and its cash flows for the three and nine month periods ended September 30, 2012 and 2011. The results of operations for the interim period ended September 30, 2012, are not necessarily indicative of the results to be expected for the full year.

3. INVESTMENTS IN PARTNERSHIPS

At September 30, 2012 and 2011, the Partnership had limited partnership equity interests in four and five Local Partnerships, respectively, each of which owns an apartment complex.

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CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

A schedule of the apartment communities owned by the Local Partnerships at September 30, 2012 in which the Partnership is invested is provided below:

PROPERTY	CITY	STATE	UNITS
Fairways	Naperville	IL	210
Northridge Park	Salinas	CA	104
Tradewinds	Traverse City	MI	122
Westport Village	Freeport	IL	121

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, 2012 and 2011, all such capital contributions had been paid to the Local Partnerships.

a. Summarized financial information

Combined statements of operations for the four and five Local Partnerships in which the Partnership was invested as of September 30, 2012 and 2011, 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.

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CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

COMBINED STATEMENTS OF OPERATIONS

(Unaudited)

	For the three months ended
	September 30,
	2012						2011
	Equity						Equity
	Method			Suspended			Method			Suspended

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

Revenue:
Rental	$	177,839		$	1,075,362		$	420,884			$	1,049,851
Other		36,611			67,306			71,072				66,653

Total revenue		214,450			1,142,668			491,956				1,116,504

Expenses:
Operating		180,572			579,000			265,705				596,274
Interest		--			156,185			--				175,767
Depreciation and amortization		31,083			166,280			47,268				207,418

Total expenses		211,655			901,465			312,973				979,459

Net income	$	2,795		$	241,203		$	178,983			$	137,045

Cash distribution	$	--		$	177,180		$	--			$	--

Cash distribution recorded
as income	$	--		$	177,180		$	--			$	--

Partnership's share of Local
Partnership net income		2,765			--			175,968				--

Share of income from partnerships	$179,945						$175,968

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CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS - Continued

COMBINED STATEMENTS OF OPERATIONS

(Unaudited)

	For the nine months ended
	September 30,
	2012						2011
	Equity						Equity
	Method			Suspended			Method			Suspended

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

Revenue:
Rental	$	533,516		$	3,188,620		$	1,322,497		$	3,141,318
Other		109,831			173,733			147,060			163,386

Total revenue		643,347			3,362,353			1,469,557			3,304,704

Expenses:
Operating		541,715			1,746,770			850,133			1,720,381
Interest		--			468,555			--			527,302
Depreciation and amortization		93,251			498,839			141,803			622,253

Total expenses		634,966			2,714,164			991,936			2,869,936

Net income	$	8,381		$	648,189		$	477,621		$	434,768

Cash distribution	$	--		$	774,234		$	--		$	415,550

Cash distribution recorded as income	$	--		$	774,234		$	--		$	415,550

Partnership’s share of Local
Partnership net income		8,296			--			469,153			--

Share of income from partnerships	$782,530						$884,703

____________________

	(a)	Mary Allen West Tower; Tradewinds
	(b)	Fairway Park; Northridge; Westport Village
	(c)	Tradewinds

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 September 30, 2012 and 2011, the Partnership's share of cumulative losses to date for three of the four and for three of the five Local Partnerships, respectively, exceeded the amount of the Partnership's investments in those Local Partnerships by $806,470 and $1,711,227, 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.

-7-

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(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 $7,598,852 as of September 30, 2012, 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 September 30, 2012.

Property	Principal	Accrued Interest as of September 30, 2012	Maturity


Westport Village (1)	$840,000	$3,137,285	09/01/99

(1) In receivership.

The remaining purchase money note related to Northridge Park matures in 2025. As of September 30, 2012, principal and accrued interest balances were $500,000 and $4,461,567, respectively.

-8-

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(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 nine month periods ended September 30, 2012, was $124,569 and $373,707, respectively, and $117,357 and $352,071 for the three and nine month periods ended September 30, 2011, respectively. The accrued interest payable on these purchase money notes of $7,598,852 and $7,225,145 as of September 30, 2012 and December 31, 2011, 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 September 30, 2012, 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 September 30, 2012 and December 31, 2011, 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.

-9-

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS – Continued

d. Completed sales

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 proceeds the Partnership received from the sale of the property. The proceeds were received on February 22, 2012.

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 Tower property. At December 31, 2011 this fee had been accrued and was included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets. The fee was paid during the three months ended March, 31, 2012.

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, 2011. The sale resulted in gain on disposition of investment in partnerships for financial statement purposes of $1,603,594 in 2011 ($1,048,768 recognized in the period ended March 31, 2011 and $554,825 recognized in the period ended June 30, 2011). During the three month period ending June 30, 2012, the Partnership received a distribution of $45,671 relating to the final release of the Local Partnership reserves.

In accordance with the terms of the Partnership Agreement, in March 2011, 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.

Madison Square

On May 7, 2008, the Local Managing General Partner signed a contract to sell the property related to Madison Square, Ltd. Dividend Housing Associates (Madison Square) to a non-profit organization. The potential purchaser of the property defaulted on the contract. The mortgage loan encumbering the property associated with the Partnership’s investment in Madison Square is in default. During the year ended December 31, 2011, The Michigan State Housing Development Authority sold the property via deed in lieu of foreclosure. The Partnership’s basis in this Local Partnership was $0 at both September 30, 2012 and December 31, 2011. Acquisition fees and property purchase costs totaled $0 at both September 30, 2012 and December 31, 2011. As of December 31, 2011, the Local Partnership was dissolved, and the Partnership no longer holds a limited partner interest in Madison Square. The Partnership did not recognize any loss during 2012 or 2011 from this transaction.

-10-

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(Unaudited)

3. INVESTMENTS IN PARTNERSHIPS – Continued

e. Investment Reconciliation

The following is a reconciliation of investments in partnerships at December 31, 2011 and September 30, 2012.

Investments in partnerships at December 31, 2011:	$	1,192,336

Share of income from partnerships		782,530
Distribution from Local Partnership		(774,234	)

Investments in partnerships at September 30, 2012:	$	1,200,632

The following is a reconciliation of investments in partnerships held for sale or transfer at December 31, 2011 and September 30, 2012.

Investments in partnerships held for sale
or transfer at December 31, 2011:	$	4,767,709

Distribution from Local Partnership		(4,767,709	)

Investments in partnerships held for sale
or transfer at September 30, 2012:	$	--

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 nine month periods ended September 30, 2012, the Partnership paid $26,987 and $81,152, respectively, and $33,516 and $112,170 for the three and nine month periods ended September 30, 2011, 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 nine month periods ended September 30, 2012, the Partnership paid $43,388 and $97,276, respectively, and $12,580 and $62,823 for the three and nine month periods ended September 30, 2011, 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 as general and administrative expenses.

-11-

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(Unaudited)

4. RELATED PARTY TRANSACTIONS - Continued

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 September 30, 2012 and 2011 and $281,250 for each of the nine month periods ended September 30, 2012 and 2011.

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.

In accordance with the terms of the Partnership Agreement, in March 2011, the Managing General Partner was paid a disposition fee or $77,500 related to the sale of Hale Ohana. The fee 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 September 30, 2012, the uninsured portion of the cash balances was $6,766,327.

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 September 30, 2012 and 2011 or net income (loss) for the nine-month periods then ended. The following financial information represents the performance of this Local Partnership for the nine-month periods ended September 30, 2012 and 2011. The combined statements have been compiled from the information supplied by the management agents of the Local Partnership properties and are unaudited.

Tradewinds Terrace	2012	2011
Total Assets	$1,398,924	$1,447,506
Total Liabilities	$70,373	$88,256
Revenue	$643,347	$682,074
Net Income	$8,381	$109,530

-12-

CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012 and 2011

(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

financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes. The following are subsequent events that require disclosure in the accompanying notes:

On October 10, 2012, a distribution to partners in the amount of $100 per investment unit, for all investors of record as of October 15, 2012, was approved. The total amount of this distribution will be $7,349,500 leaving approximately $1.5 million in cash reserves which is considered adequate to meet all anticipated obligations of the Partnership.

-13-

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 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, 2011. 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.

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

Financial Condition/Liquidity

The Partnership's liquidity, with unrestricted cash resources of $8,863,783 along with anticipated future cash distributions from Local Partnerships, is expected to be adequate to meet its current and anticipated operating cash needs. On October 10, 2012, a distribution to partners in the amount of $100 per investment unit, for all investors of record as of October 15, 2012, was approved. The total amount of this distribution will be $7,349,500 leaving approximately $1.5 million in cash reserves which is considered adequate to meet all anticipated obligations of the Partnership.

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 nine month period ended September 30, 2012, existing cash resources, receipt of distributions from Local Partnerships and sale proceeds received were adequate to support operating cash requirements. Cash and cash equivalents increased $4,901,135 during the nine month period ended September 30, 2012, primarily due to sale proceeds received from the disposition of Mary Allen West Tower and the distributions received from Fairway Park and Northridge.

Results of Operations

The Partnership experienced an increase in net loss for the three month period ended September 30, 2012 compared to 2011, primarily due to an increase in general and administrative expenses and professional fees.

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 nine month periods ended September 30, 2012 did not include income of $236,283 and $634,700, respectively, compared to excluded losses of $29,812 and $54,921 for the three and nine month periods ended September 30, 2011, 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 September 30, 2012.

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Part I.	FINANCIAL INFORMATION
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 effective.

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.	OTHER INFORMATION
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 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.

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Part II.	OTHER INFORMATION
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 September 30, 2012, but not reported, whether or not otherwise required by this Form 10-Q at September 30, 2012.

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, 2012, 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.

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 PARTNERSHIP
	(Registrant)

	by:	C.R.I., Inc.
		Managing General Partner



		by:	/s/ H. William Willoughby
November 9, 2012			H. William Willoughby
DATE			Director, President, Secretary,
			Principal Financial Officer and
				Principal Accounting Officer

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CAPITAL REALTY INVESTORS IV LIMITED PARTNERSHIP 10-Q