diff --git a/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java b/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
index 256cc5605dc6..2c72fd431e29 100644
--- a/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
+++ b/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
@@ -23,7 +23,8 @@ public class PythonBackspaceHandler extends BackspaceHandlerDelegate {
     if (myTargetPosition != null) {
       // Remove all the following spaces before moving to targetPosition
       final int offset = editor.getCaretModel().getOffset();
-      editor.getSelectionModel().setSelection(offset - editor.getCaretModel().getVisualPosition().column + myTargetPosition.column, offset);
+      final int targetOffset = editor.logicalPositionToOffset(myTargetPosition);
+      editor.getSelectionModel().setSelection(targetOffset, offset);
       EditorModificationUtil.deleteSelectedText(editor);
       editor.getCaretModel().moveToLogicalPosition(myTargetPosition);
       myTargetPosition = null;
diff --git a/python/testData/editing/py254.py b/python/testData/editing/py254.after.py
similarity index 100%
rename from python/testData/editing/py254.py
rename to python/testData/editing/py254.after.py
diff --git a/python/testData/editing/py254.before.py b/python/testData/editing/py254.before.py
new file mode 100644
index 000000000000..fe08bad30ded
--- /dev/null
+++ b/python/testData/editing/py254.before.py
@@ -0,0 +1,7 @@
+
+class Foo(object):
+    def foo(bar):
+        pass
+
+    def bar(foo):
+        pass
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyEditingTest.java b/python/testSrc/com/jetbrains/python/PyEditingTest.java
index c6bd2234b35d..34f082a2b5ad 100644
--- a/python/testSrc/com/jetbrains/python/PyEditingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyEditingTest.java
@@ -12,8 +12,6 @@ import com.intellij.openapi.util.Computable;
 import com.intellij.psi.PsiFile;
 import com.jetbrains.python.fixtures.PyLightFixtureTestCase;
 
-import java.io.IOException;
-
 /**
  * @author yole
  */
@@ -62,27 +60,27 @@ public class PyEditingTest extends PyLightFixtureTestCase {
     assertEquals("''", doTestTyping("''", 1, '\''));
   }
 
-  public void testGreedyBackspace() throws Exception {  // PY-254
-    myFixture.configureByFile("/editing/py254.py");
-    myFixture.getEditor().getCaretModel().moveToLogicalPosition(new LogicalPosition(4, 8));
-    CommandProcessor.getInstance().executeCommand(myFixture.getProject(), new Runnable() {
-      public void run() {
-        myFixture.performEditorAction(IdeActions.ACTION_EDITOR_BACKSPACE);
-      }
-    }, "", null);
-    // this should not modify the text, so we can check against the same file 
-    myFixture.checkResultByFile("/editing/py254.py", true);
+  public void testGreedyBackspace() {  // PY-254
+    doTestBackspace("py254", new LogicalPosition(4, 8));
   }
 
-  public void testUnindentBackspace() throws Exception {  // PY-853
-    myFixture.configureByFile("/editing/smartUnindent.before.py");
-    myFixture.getEditor().getCaretModel().moveToLogicalPosition(new LogicalPosition(1, 4));
+  public void testUnindentBackspace() {  // PY-853
+    doTestBackspace("smartUnindent", new LogicalPosition(1, 4));
+  }
+
+  public void testUnindentTab() {  // PY-1270
+    doTestBackspace("unindentTab", new LogicalPosition(4, 4));
+  }
+
+  private void doTestBackspace(final String fileName, final LogicalPosition pos) {
+    myFixture.configureByFile("/editing/" + fileName + ".before.py");
+    myFixture.getEditor().getCaretModel().moveToLogicalPosition(pos);
     CommandProcessor.getInstance().executeCommand(myFixture.getProject(), new Runnable() {
       public void run() {
         myFixture.performEditorAction(IdeActions.ACTION_EDITOR_BACKSPACE);
       }
     }, "", null);
-    myFixture.checkResultByFile("/editing/smartUnindent.after.py", true);
+    myFixture.checkResultByFile("/editing/" + fileName + ".after.py", true);
   }
 
   public void testUncommentWithSpace() throws Exception {   // PY-980