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What is the difference between its and it's?

It's with an apostrophe is short for it is or it has. Its without one is the possessive, like his or hers. The test is whether you can expand it to it is. If you can, use the apostrophe. Possessive pronouns never take apostrophes, which is why its follows the same pattern as yours and theirs.

This comes up on Apostrophe Rules Explained, where it is answered in the context of the work itself.

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