diff --git a/idea/src/org/jetbrains/jet/plugin/refactoring/jetRefactoringUtil.kt b/idea/src/org/jetbrains/jet/plugin/refactoring/jetRefactoringUtil.kt
index b4453a9dc9c..6b138aa0eb8 100644
--- a/idea/src/org/jetbrains/jet/plugin/refactoring/jetRefactoringUtil.kt
+++ b/idea/src/org/jetbrains/jet/plugin/refactoring/jetRefactoringUtil.kt
@@ -73,6 +73,7 @@ import org.jetbrains.kotlin.psi.psiUtil.getParentOfType
 import org.jetbrains.kotlin.psi.psiUtil.getStrictParentOfType
 import com.intellij.psi.PsiPackage
 import org.jetbrains.jet.plugin.util.ProjectRootsUtil
+import org.jetbrains.kotlin.psi.psiUtil.parents
 
 fun <T: Any> PsiElement.getAndRemoveCopyableUserData(key: Key<T>): T? {
     val data = getCopyableUserData(key)
@@ -137,27 +138,27 @@ public fun PsiElement.getAllExtractionContainers(strict: Boolean = true): List<J
 }
 
 public fun PsiElement.getExtractionContainers(strict: Boolean = true, includeAll: Boolean = false): List<JetElement> {
+    fun getEnclosingDeclaration(element: PsiElement, strict: Boolean): PsiElement? {
+        return element.parents(!strict)
+                .filter {
+                    (it is JetDeclarationWithBody && it !is JetFunctionLiteral)
+                    || it is JetClassInitializer
+                    || it is JetClassBody
+                    || it is JetFile
+                }
+                .firstOrNull()
+    }
+
     if (includeAll) return getAllExtractionContainers(strict)
 
-    val declaration = getParentOfType<JetDeclaration>(strict)?.let { declaration ->
-        stream(declaration) { it.getStrictParentOfType<JetDeclaration>() }.firstOrNull { it !is JetFunctionLiteral }
-    } ?: return Collections.emptyList()
-
-    val parent = declaration.getParent()?.let {
-        when (it) {
-            is JetProperty, is JetMultiDeclaration -> it.getParent()
-            is JetParameterList -> it.getParent()?.getParent()
-            else -> it
-        }
+    val enclosingDeclaration = getEnclosingDeclaration(this, strict)?.let {
+        if (it is JetDeclarationWithBody || it is JetClassInitializer) getEnclosingDeclaration(it, true) else it
     }
-    return when (parent) {
-        is JetFile -> Collections.singletonList(parent)
-        is JetClassBody -> {
-            getAllExtractionContainers(strict).filterIsInstance<JetClassBody>()
-        }
+
+    return when (enclosingDeclaration) {
+        is JetFile -> Collections.singletonList(enclosingDeclaration)
+        is JetClassBody -> getAllExtractionContainers(strict).filterIsInstance<JetClassBody>()
         else -> {
-            val enclosingDeclaration =
-                    PsiTreeUtil.getNonStrictParentOfType(parent, javaClass<JetDeclarationWithBody>(), javaClass<JetClassInitializer>())
             val targetContainer = when (enclosingDeclaration) {
                 is JetDeclarationWithBody -> enclosingDeclaration.getBodyExpression()
                 is JetClassInitializer -> enclosingDeclaration.getBody()
diff --git a/idea/testData/quickfix/autoImports/noImportInImports.before.Main.kt b/idea/testData/quickfix/autoImports/noImportInImports.before.Main.kt
index de5cb10351f..0b5a0466b26 100644
--- a/idea/testData/quickfix/autoImports/noImportInImports.before.Main.kt
+++ b/idea/testData/quickfix/autoImports/noImportInImports.before.Main.kt
@@ -3,6 +3,7 @@
 // ACTION: Create class 'SomeTest'
 // ACTION: Create enum 'SomeTest'
 // ACTION: Create object 'SomeTest'
+// ACTION: Create property 'SomeTest'
 // ACTION: Create trait 'SomeTest'
 // ERROR: Unresolved reference: SomeTest
 
diff --git a/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryInPackage.kt b/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryInPackage.kt
index 76bf8af903f..482d34e8a21 100644
--- a/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryInPackage.kt
+++ b/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryInPackage.kt
@@ -2,6 +2,7 @@
 // ACTION: Create class 'A'
 // ACTION: Create trait 'A'
 // ACTION: Create object 'A'
+// ACTION: Create property 'A'
 // ACTION: Create enum 'A'
 // ACTION: Create annotation 'A'
 // ERROR: Unresolved reference: A
diff --git a/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryWithQualifier.kt b/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryWithQualifier.kt
index 82f94fde623..3c30517128b 100644
--- a/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryWithQualifier.kt
+++ b/idea/testData/quickfix/createFromUsage/createClass/importDirective/beforeEnumEntryWithQualifier.kt
@@ -2,6 +2,7 @@
 // ACTION: Create class 'A'
 // ACTION: Create trait 'A'
 // ACTION: Create object 'A'
+// ACTION: Create property 'A'
 // ACTION: Create enum 'A'
 // ACTION: Create annotation 'A'
 // ERROR: Unresolved reference: A
diff --git a/idea/testData/quickfix/createFromUsage/createVariable/parameter/beforeInClassObjectInitializer.kt b/idea/testData/quickfix/createFromUsage/createVariable/parameter/beforeInClassObjectInitializer.kt
index 26555d5680a..e6b9e00850e 100644
--- a/idea/testData/quickfix/createFromUsage/createVariable/parameter/beforeInClassObjectInitializer.kt
+++ b/idea/testData/quickfix/createFromUsage/createVariable/parameter/beforeInClassObjectInitializer.kt
@@ -1,5 +1,6 @@
 // "Create parameter 'foo'" "false"
 // ACTION: Create local variable 'foo'
+// ACTION: Create property 'foo'
 // ACTION: Split property declaration
 // ERROR: Unresolved reference: foo
 
diff --git a/idea/testData/refactoring/extractFunction/duplicates/insertBeforeDuplicates.kt.after b/idea/testData/refactoring/extractFunction/duplicates/insertBeforeDuplicates.kt.after
index 416ec506584..ec6be0d48af 100644
--- a/idea/testData/refactoring/extractFunction/duplicates/insertBeforeDuplicates.kt.after
+++ b/idea/testData/refactoring/extractFunction/duplicates/insertBeforeDuplicates.kt.after
@@ -1,8 +1,8 @@
 fun foo() {
-    fun i(): Int {
-        return 1 + 1
-    }
-
     val x = i()
     val y = i()
+}
+
+private fun i(): Int {
+    return 1 + 1
 }
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt b/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt
index b36d53d77e8..89190f5bfca 100644
--- a/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt
+++ b/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt
@@ -1,3 +1,7 @@
+// PARAM_TYPES: kotlin.Int
+// PARAM_TYPES: kotlin.Int
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in bar
+// PARAM_DESCRIPTOR: value-parameter val b: kotlin.Int defined in bar
 fun bar(a: Int, b: Int) {
     val foo = <selection>a + b</selection> - 1
 }
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt.after b/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt.after
index 77b732dfc0f..c4f363e52d5 100644
--- a/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt.after
+++ b/idea/testData/refactoring/extractFunction/initializers/properties/localProperty.kt.after
@@ -1,7 +1,11 @@
+// PARAM_TYPES: kotlin.Int
+// PARAM_TYPES: kotlin.Int
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in bar
+// PARAM_DESCRIPTOR: value-parameter val b: kotlin.Int defined in bar
 fun bar(a: Int, b: Int) {
-    fun i(): Int {
-        return a + b
-    }
+    val foo = i(a, b) - 1
+}
 
-    val foo = i() - 1
+private fun i(a: Int, b: Int): Int {
+    return a + b
 }
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt b/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt
index 2b7845c0b2c..2613155daf0 100644
--- a/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt
+++ b/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt
@@ -1,3 +1,7 @@
+// PARAM_TYPES: kotlin.Int
+// PARAM_TYPES: kotlin.Int
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in bar
+// PARAM_DESCRIPTOR: value-parameter val b: kotlin.Int defined in bar
 fun bar(a: Int, b: Int) {
     val foo = { <selection>a + b</selection> - 1 }.invoke()
 }
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt.after b/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt.after
index b5e693aaf29..ea272ef71f1 100644
--- a/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt.after
+++ b/idea/testData/refactoring/extractFunction/initializers/properties/localPropertyWithLambda.kt.after
@@ -1,7 +1,11 @@
+// PARAM_TYPES: kotlin.Int
+// PARAM_TYPES: kotlin.Int
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in bar
+// PARAM_DESCRIPTOR: value-parameter val b: kotlin.Int defined in bar
 fun bar(a: Int, b: Int) {
-    fun i(): Int {
-        return a + b
-    }
+    val foo = { i(a, b) - 1 }.invoke()
+}
 
-    val foo = { i() - 1 }.invoke()
+private fun i(a: Int, b: Int): Int {
+    return a + b
 }
\ No newline at end of file