This tutorial is using the a .png torn template and paper provided by Steph at
Before you start doing the template, it is important to resize the template or paper so both are the same size in the torn direction. The size of the template doesn't matter is the non-torn direction. (i.e. If the torn edge is top to bottom. The template should be the same height as your paper but doesn't have to be the same width. )
Open your paper or layout that you are using and open the Object Palette because it will be needed (View | Object Palette)
OR Resize using object dimensions: you want a specific size, type it in the Width or Height. (Make sure the Scale Proportion is checked so that when you change one of the dimensions the other automatically resizes.)
Select Tear Template in the Object Palette, click on the Magic Wand in the toolbar and click on the side of the tear that you want to KEEP the paper which is the opposite of the shadow'ed side.
Choose Image | Mask | Mask Out Selection Don't worry, you can't see your tear template but we will get it back soon.
We are going to copy the mask to the paper layer. To do this, press Ctrl + A to select the mask and Ctrl + C to copy the mask. The mask is now in computer's clipboard ready to be used.
Deleting this mask makes the next step easier, so let's delete this mask. You can do that by right clicking on the object and choosing Clear Mask. If the Clear Mask option is grayed out, you still have the mask selected, click outside the mask box somewhere on the object and then right click again.
Double-click on the mask box in your paper object and press Ctrl + V to paste that mask you created.
The
mask isn't in the correct position, so we need to move it. The easiest
way I found was to use the arrow keys and slide it into place. (In this
case I held the right arrow and slid it over.) You can also use the Select | Remote Move Tool and use your mouse to drag it into position.
When cropping box is adjusted to your satisfacation, choose Apply Crop