Explanation between its and it's using simple sentences with two examples each.
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It's is always the abbreviation of "it is" as in "It's (= it is) a nice day, isn't it?" Its is the possessive of "it" as in, "That is Morton's puppy but I don't know its name." In the second sentence, its means "belonging to it".
Explanation:
Rule 1: When you mean it is or it has, use an apostrophe.
Examples: It's a nice day. ...
Rule 2: When you are using its as a possessive, don't use the apostrophe.
Examples: The cat hurt its paw. ...
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