Step 1 will be to pick your image. You can use any image you want. Do make sure that the image is rectangular and not round or transparent. If it is, place it on a rectangular background. You could do it with a round or transparent image, but it would look off.
Press CTRL+J to duplicate your image-layer and press CTRL+T to transform it. With the transformation active right-click and choose Flip Vertically. Then while holding SHIFT, use the Move-Tool (V) to drag your duplicate down to the bottom edge of the original. You can also hold SHIFT and press DOWN.
Lower the transparency to 20-30%. Then select the Eraser and choose a very large soft brush and start erasing parts of the lower section of the reflection like it's fading away. If you're not happy with it, press CTRL+Z to undo your strokes.
The curve
Duplicate the reflection and the original and place them somewhere hidden as a back-up. Then merge the original 2 layers together by selecting them in the palette while holding CTRL and pressing CTRL+E. When you've done that, go to Edit>Transform>Warp and you'll notice a sort of net-pattern appearing over your layer. These points will give you the ability to twist and bend the image to your liking and still being able to edit it.
When you look at the taskbar, you'll see a dropdown-menu with various preset warps. If you're not happy with any warp, simply pick NONE or press ESC. I encourage you to play around with it a little. You can either click on the squares and move an entire section or click on a line or point which you wish to move. Also note the pen-tool-like anchorpoints in the corners which have curve-points which you can also place to determine the curve of the line.
Twist and bend the image so that it sort of looks like mine. Make sure it bulges on the left and right side a little and that it folds in a bit on the top and bottom. Also make sure that the top of the original image (minus the reflection) needs to fold upwards as well.
You can also play with the background a little by adding a fading gradient. Just be sure that if you do this, the bottom half needs to be lighter than the top half. Even though we warped the 2 images as a whole, it's still 1 image and a reflection when you look at it. Ofcourse, you are free to use any image you desire. Just like I used this stock image of this gorgeous lady
Conclusion
The warp-transformation is a very cool way to transform something with more control. It's perfect for things like these or when you need to make a very static piece of paper into a dynamic sheet that gives itself a little bit more depth. Also know that if you still have your transformation active, you can choose a new transformation in the menu of Edit>Transform with the transformation still active. However, if you transform the image too much, it might turn out a bit choppy and pixelated. My advice is to just play around with the warp-function to see what you can come up with!
