P Diddy's house scandal

Rap mogul Sean 'P Diddy' Combs has forced the seller of his new house to pay staggering taxes, by telling the press he paid the full asking price.

The rapper insists he paid $10m (€8.2m) for the lavish New Jersey property, when he actually paid $6.8m (€5.6m), which means the man who sold him the apartment has to pay taxes on the inflated price rather than the real price.

A close source tells website pagesix.com: "Combs did not pay $10m (€8.2m) for his new home as reported but, rather, $6.8m (€5.6m).

"The inflated $10m (€8.2m) purchase price was floated by the broker.

“The $10m (€8.2m) number, however, presents an IRS problem for the poor guy who sold the house to Combs, since he would have to pay taxes on $10m instead of the actual $6.8m (€5.6m) purchase price."

Combs' representative insists: "The terms of the deal are confidential, but I can confirm that the dollar figure reported is a good representation of the full economic deal.

"We have no knowledge of tax ramifications on the part of the seller and we have no idea whether or not that is true."