* The dog wagged its tail happily. (The tail belongs to the dog.)
* The car lost its tire on the bumpy road. (The tire belonged to the car.)
* The book is famous for its interesting characters. (The characters belong to the book.)
Common Mistakes:
People often confuse "its" with "it's". "It's" is a contraction of "it is" or "it has".
* It's a beautiful day. (This means "It is a beautiful day.")
* It's been a long time since we last saw each other. (This means "It has been a long time...")
Remember, "its" shows possession, and "it's" is a contraction.