1.— Double-click on the background layer to turn it into a regular, unlocked layer.
2.— Select the white background around the layer. In this very simple example, the Magic Wand Tool and/or the Quick Select Tools will work fine.
3.— Hit the Delete (Backspace) key.
4.— Save your image as a PSD, TIFF, PNG or GiF. Other formats like JPEG do not support transparency; they would simply add the white pixels back in..
another method is extracting the toast from the background.
this is a simple link and tutorial:
You have some of the methods, and especially Station_Two's (simple, but exactly what you need in that example) method, it should get you the Transparency around the "bread." Be sure to Save_As a format, that support Transparency. If you use something like JPEG, you WILL get that white area back.
One thing for next time:
"Crop" is a process for removing area within the Aspect Ratio of the image. It will always be done in a rectangular fashion. What you are looking to do is most often referred to as a "Knockout," where you are separating the subject from some background (taking that to Transparent), but not affecting the size of the Image.
Thanks for the reply. I used the Magic Wand Tool to select the whitespace around the edges. However, when I hit 'delete' I get this message: "Could not complete your request because the smart object is not directly editable." The background layer is unlocked and I've tried using both JPEG and PNG as a file format for the imported picture (bread). Any ideas?