diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
index ef2e2bf1a0b..28d626f7d97 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
@@ -64,10 +64,12 @@ object FirClassVarianceChecker : FirClassChecker() {
             if (member is FirProperty && member.isVar) Variance.INVARIANT else Variance.OUT_VARIANCE
 
         var returnSource = member.returnTypeRef.source
-        if (returnSource != null && memberSource != null) {
-            if (returnSource.kind is KtFakeSourceElementKind && memberSource.kind !is KtFakeSourceElementKind) {
+        if (returnSource != null) {
+            if (memberSource != null && returnSource.kind is KtFakeSourceElementKind && memberSource.kind !is KtFakeSourceElementKind) {
                 returnSource = memberSource
             }
+        } else {
+            returnSource = memberSource
         }
 
         checkVarianceConflict(member.returnTypeRef, returnTypeVariance, context, reporter, returnSource)
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirDeclarationsResolveTransformer.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirDeclarationsResolveTransformer.kt
index ed46ee22acd..681b6fac074 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirDeclarationsResolveTransformer.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirDeclarationsResolveTransformer.kt
@@ -1068,9 +1068,6 @@ open class FirDeclarationsResolveTransformer(transformer: FirBodyResolveTransfor
                 buildResolvedTypeRef {
                     type = this@toExpectedTypeRef.coneType
                     annotations.addAll(this@toExpectedTypeRef.annotations)
-                    this@toExpectedTypeRef.source?.fakeElement(KtFakeSourceElementKind.PropertyFromParameter)?.let {
-                        source = it
-                    }
                 }
             }
         }