In Escrow, need help quick! Do I have to fill out 593C form?

[Eric Traboulay]

Hi BP Family,

OK here it goes; My wife and I are in escrow on our first flip in San Diego and the escrow company is asking us to fill out the 593-C form to withhold taxes on the sale of the house. It was my understanding that I only have to pay tax on the capital gain of the house and not the full amount. They aren't taking into account the difference of what expenses I had to flip the house. Do I just get raked over the coals now and pay the $17K in taxes and then get some of it back later when I do my taxes next year?

I'm thinking I want to select the Individual 12.3% x Gain on Sale. Thoughts?
Eric