What is the proper way to report deductions when moving a home office from one home to another?

I am a sole proprietor and have been filing for a home office since 1997. In 2002, however, I moved from one address to another. I lived at the old address until March 31, 2002. My home office is now at the new address. Do I enter 2 separate home office worksheets (Form 8829) or 2 separate Schedule Cs? I do carry inventory, and the square footage of the new home office is different than the old one. What is the proper way to report deductions?

You should file one Schedule C but two Forms 8829 — one representing the income and deductions attributable to the portion of the year you owned the old house, and the second representing income and deductions attributable to the portion of the year you used the new house for your home office. On the Form 8829 representing use of your old house, enter on line 8 only the amount of Schedule C income attributable to the period prior to March 31, plus any gain recognized on the sale of your house allocable to your home office. On the second Form 8829, use the balance of Schedule C income as a measure against home office deductions for the new house. The total allowable home office deductions from both forms are combined on line 30 of Schedule C.