Resolving Layer via Copy or Layer via Cut - Grayed Out

There are many times you will "place" a picture file inside your photoshop document, and want to resize it, put it in a different layer, or crop the image inside photoshop - but you may find a simple error message or grayed out layer via copy/cut prevents you from doing so.

To do this, you will most often do this one of three ways:

1) Select the Marquee tool and outline the area of the image you want to copy or cut

2) Go to Layer > New > Layer via Cut/Copy

3) Click Ctrl+J

Many times, you will find none of these selections work. All options will be greyed out. You may be tempted to create a new layer, and then use one of these options in the new layer. In this case, you will get the error message "Could not make a new layer from the selection because the selected area is empty."  All these errors are a result of photoshop not identifying pixels that you are trying to cut/copy.

There is a simple solution to this problem.  Go over to the "Layers" box, and click on the layer listing for the layer where your newly placed image resides. Make sure your image is the only item in this layer, if not relocate the image into a new layer by itself.  Right-click on the layer where your photo is located in the "layers" box and click on "Rasterize Layer".

Once you do this you will now be able to follow one of the steps above to Layer Via Copy or Layer Via Cut.

Good luck.