Read carefully and ask questions if you don't understand something.
Basically you need to create a new, blank 'archive' calendar file, export all the events in your 'troubled' file, import them in to the archive file and then delete the old items in the troubled calendar file.
Here's some modified instructions from the Apple support folks:
First back up your calendars again by using the steps in this article. http://support.apple.com/kb/HT4910
For any calendars with a lot of older data in them that you don't need to have on the iCloud Servers, follow these step:
1. Pick a calendar with older data. In your case it would be the 'Home Calendar' on iCloud.
2. Create a new calendar in the On My Mac section of iCal by choosing File > New Calendar > On My Mac.
3. Enter a name for the new calendar such as "archive" or "history." You may wish to append this to its previous name (such as "Home-archive").
4. Select (highlight) the calendar with older data in the Calendars List that correlates to the archive calendar you created in the previous step. This might be the calendar on iCloud.
5. Choose File > Export > Export (not an iCal Archive file but an ICS file) and save the ICS file generated to a dedicated location, such as a new folder on your Desktop called "iCal archive."
6. Choose File > Import, and when prompted, navigate to the ICS file you just exported.
7. When prompted, choose import the ICS file into the appropriate archive calendar you created in the ON MY MAC section of iCal.
8. Focus on the two calendars, the one you exported from earlier and the archive one you just imported.
▪ In the Calendar list, uncheck the checkboxes next to every other calendar besides the one you exported from earlier and the one you just imported.
▪ Select one of these two visible calendars in the Calendar List and choose Get Info from the Edit menu.
▪ Set a new color value for the calendar so it is a different color than the other copy of it. For example, your "Home" calendar could be colored green and your "Home-archive" calendar could be colored purple.
▪ Uncheck the checkbox next to your archive calendar so that only the events in the calendar you want to trim are shown
▪ Type a period in the Search field located in the top right corner of iCal.
▪ Once all of the events for the visible calendar is displayed, sort them by date.
▪ Pick a date range that you would like to have available via iCloud and from where you are comfortable archiving everything prior. For example: the last year, the last two years, and so on.
▪ In the non-archive calendar, delete every event occurring BEFORE the date you chose as the archive point. Staying consistent with the previous example, that would mean deleting all events from December 31st, 2009 and earlier. Note: To easily do this, you may wish to temporarily deselect checkbox next to the archive calendar in the Calendar List so its events are not visible while you are bulk selecting older calendar events to delete in the associated calendar. After you delete your targeted events, check the checkbox next to the archive calendar so it is visible again.
▪ In the archive calendar, delete every event occurring AFTER the date you designated as your archive point. For example if you decided to archive everything prior to January 1st, 2010, you would want to delete all events in the archive calendar from January 1st up to the present day. Note: To easily do this, you may want to temporarily deselect the checkbox next to the non-archive calendar in the Calendar List so its events are not visible while you are bulk selecting newer calendar events to delete in the archive calendar. After you delete your targeted events, re-enable the checkbox next to the non-archive calendar so it is visible again.