Here what it will look like till now .. just place the image at upper half of the stage.

Step 2 : Now Create a New Layer and make it fill with a black background. Place this new layer at the bottom in the layer panel on the right side of image. For simplicity name this layer “BAG”.

Step 3 : Now make a copy of previous layer we created with name BAG and name this new copied layer as “BAG Copy” . Place this copied layer after the BAG layer in the layer panel.

Step 4 : Now select the layer BAG copy and flip this layer by going to Edit => Transform => Flip Vertical . See the image below for more visual description.

Step 5 : Now after flipping the layer BAG copy , drag this layer to the bottom of the layer BAG , just touching the one of the corners.

Step 6 : Now to make the image corners to be aligned properly we have to skew the layer BAG copy . By selecting this layer from the layer panel in the sidebar . Make a selection of the left part of the layer BAG copy . The selection will be from the edge to the extended corner like in the picture below. The selection should be for the whole image so stretch the selection by making transform selection by going to Select => Transform Selection as in the image below..

Step 7 : Now skew the selection by going to Edit => Free Transform . For Free tranform to work you can hold the Control Key on Mac and Ctrl key on Windows , this will provide you the option of moving the selcted part in a skew manner.

Step 8 : Now you can repeat this step for the next half part of the BAG copy image .. After the skew selections and all transform the image will look like below .. now we are almost done with the image looking as a Reflection with some more effects like transparency and gradient targetting the bottom part we are done ..

Step 9 : Now for making the image fade from the bottom part we have to select quick mask mode just below the colors in left menu at the bottom. Keeping in quick mask mode select the gradient tool and in gradient tool select background to foreground in color mode the gradient options. Cut the layer by coiming out of the quickk mask mode like in the image below

Step 10 : Now delete this layer and make the BAG copy layer to make the opacity down to 75% or anything you like according to your need.

Here is the PSD attached .. you can download it and see if you want

And here is your Reflection effect you were looking for .. if you face any problems tell me i will be happy to resolve them.