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Ihr is a very common word in German, and can have several meanings.
It can mean your when addressing someone formally. In this case it's always written with a capital letter
When addressing someone informally, you use dein.
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| Wo wohnt Ihr Freund, Herr Paul? |
Where does your friend live, Mr Paul?. |
| Wo wohnt dein Freund, Heike? |
Where does your friend live, Heike? |
It can be used as an informal you when referring to more than one person. The verb will end with -t.
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| Kommst du? |
Are you coming? (one person, informal) |
| Kommt ihr? |
Are you coming? (more than one person, informal) |
Finally, ihr can be used to mean her or their. The meaning is obvious from the context.
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| Das ist Claudia. Peter ist ihr Freund. |
This is Claudia. Peter is her friend. |
| Hier wohnen Peter und Claudia. Das ist ihr Haus |
This is where Peter and Claudia live. This is their house. |