According to this unofficial source, the inherited basis of the demolished building is added to the basis of the land that the inherited foreign property is located on. The brand new buildings will have their own cost basis that began when they were complete without regard to the inherited basis of the demolished buildings.
Now using your examples, the father's capital gain is 100-80=20. Each transaction or value is reported in USD in the year that they occured.
Now as far as taxes, maintenance, utilities, these can only be deducted if you rented the property and you were deducting these against rental income. The only thing that can be deducted from the sale proceeds is selling expenses such as advertising, broker fees, legal fees, and repairs made as part of the home sale. In addition, you may be able to claim a foreign tax credit levied on the sale of the property.
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