This tutorial will show you how to make a photo like the one shown in this layout.

Using the Rectangle marquee tool, select the area of the photo that will be the actual photograph, angle it a little bit. Select > Transform Selection. Transform handles appear, click on the middle top or side handle and rotate to an angle. Hit enter to finalize the transformation.
CNRT J to copy this selection to a new layer (this layer will be referred to as the “Rectangular Layer”).
Click on the background layer in the layers palette. Extract the part of the photo breaking out of the border using the magic wand, lasso tool, magnetic tool, or extract tool. This tutorial will demonstrate two ways to extract. The magic wand and the magnetic lasso tool.
Using the Magnetic Lasso Tool:
Use the Zoom tool on the tool bar to get in close to work on the extraction. (Z on the key board). Click on the Magnetic lasso tool.

Slowly move the mouse around the image, this tool will select the image as it is dragged. If it does not select an area Click the mouse to set a point. If part of the image is not visible on screen, press and hold the Space bar. A small hand will show up, this will allow you to move your photo inside the window without losing your selection. Release the space bar to continue to select and extract your subject.
CNTR J to copy this selection to its own layer. This layer will be referred to as the “Cut out Layer”. Click on this new layer and Select > Inverse followed by delete. This will remove the excess from the photo.
Remove your selection – Select > Deselect.
Click on the Rectangular Layer, hold the key CNTR and click on the add a New Layer icon in the layers palette
by using the CNTR key the new layer will be placed below the Rectangular layer.
Fill this layer with white. Press the X key until white is the foreground color in the tool bar.

Click on your paint bucket, make sure the new layer is active and click in the image. This will fill this layer with white.
Add Stoke layer style to the rectangular layer. Use an off white color, since the background is white. Make the stroke inside.

Skip to How To Merge Layers in this tutorial (following using the Magic Wand demonstration)-
Using the Magic Wand tool:
Click on the magic wand tool in the tool bar.

Set the tolerance to 40 and uncheck contiguous. The magic wand tool works well when you are selecting an area that is all the same color (like the blue sky in my picture). Click on the area of the photo to be removed. Sometimes not all the area will get selected, these spots can easily be added by clicking on the “add to selection” tool on the selection tool bar.. Click on the rectangular marquee tool and draw a box around each spot to add to the current selection.

Select > Inverse, Then CNTR J to move this selection to its own layer.
It will look the same since copy you placed a copy on top of the background photo.
To remove the excess from the cut out layer, hold CNTR and Click on the thumbnail of the Rectangular Layer- This will load this layer as the selection; add to this selection the cut out part of the photo by clicking on the marquee tool and then clicking “add to selection” in the tool bar and dragging a selection of the cutout to include. Click back on the cut out layer in the layers palette and click Select > Inverse followed by Delete. This will remove the excess from the photo.
Remove your selection – Select > Deselect.
Click on the Cut out Layer, hold the key CNTR and click on the add a new layer icon in the layers palette by using the CNTR key the new layer will be placed below the cut out layer.
Fill this layer with white. Press the X key until white is the foreground color in the tool bar.

Click on your paint bucket, make sure the new layer is active and click in the image. This will fill this layer with white
Add Stoke layer style to the rectangular layer. Use an off white color, since the background is white. Make the stroke inside

Erase the part of the stroke over the cutout image. Right click on the stroke in the layers palette and and select create layer. This will put the stroke on its own layer above the rectangular layer. Using the Erase tool erase the part of the stroke that is over the cut out photo. (A layers mask can also be used).
How to MERGE Layers
Merge the “Cut out” layer and “rectangular” layer and “Stoke” layer together by holding the CNTR key and clicking on all these layers in the layers palette. Then select Layers > Merge Layers (or enter CNTR E).
CNTR click on the thumbnail of the merged layer. Add another new layer below by clicking CNTR and add new layer. CNTR click on the new layer. Fill selection with black with the paint bucket. Then deselect it Select > Deselect. Go to free transform Edit > Free Transform (or CNTR T), CNTR and click on top middle handle. Move to the left. (Angle it), then go to Gaussian blur filter Filter > Blur > Gaussian Blur. (About 10-15 or so) lower the opacity to 40.
The finished layers palette will look like this and the finished Border Breakout like this.

Another example-
 
Credits-
Layout “Free Weights”
Red paper, PP paper and Swirl Tracy Ann Robinson – www.scrapbook-bytes.com + Paper tear template Katie Pertiet- www.designerdigitals.com +
Font- CL Man's print
Layout “One Game Away”
Paper, stars- Kristie David www.shabbyprincess.com + Note paper- Katie Pertiet www.designerdigitals.com + Paper alpha, Paper snippets Laura Deacetis www.sweetshoppedesigns.com + Negative cluster Gina Miller www.ginamillerdesigns.com +Font- TIA causual, garamond
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