More pictures

No tv over the fireplace: too high for comfortable viewing, and not the right look in a room with formal furniture. It would be better on a console or cabinet to the side of the fireplace even if you have to remove the tall wood cabinet.

Agree with felizlady. Many people mount them over fireplaces by default, but it is terrible ergonomics. The middle of the tv should be at about eye level or a little higher unless you like to have a crick in your neck.

The current layout suits the style of the furnishings here. So my question: what's your style? And do you intend to replace the carpet?

Why can’t the TV go on the wall between the kitchen and LR that is my last choice for opening walls Between the kitchen and DR yes not open to the LR IMHO. Your layout now is perfect for the TV on that wall . As for the kitchen a counter depth fridge would be the first item onmy list along with new lighting all over with LED bulbs in 4000K to keep colors looking the same at night. Maybe you need to post some more info for any other changes. BTW no room for a coat closet at the entry.

What bothers me is that the dining room table and chairs is sticking out too far into the living room .., and the wide opening of the kitchen into the dining room Area ..!
when you have a formal dinner half the guests will be staring into the huge opening and right into the kitchen with pots and pants on display . I would put a door in the middle and fill in the sides placing little tables or vases or paintings . or two doors ( swing doors ) to fill that large opening .
And I would try and place the sofa in front and the chairs on both sides of the fireplace to make a comfortable triangle for sitting and enjoying the fire . Behind the sofa should be some sort of long table or sideboard to place a silver bowl or wide vase , books etc. or , two little chairs with a small table in between . I would also fill in the front door divider and place a mirror on the side facing the front door with a narrow table for keys etc. . You have a lot of space ...on the the kitchen wall facing the living room , you could have a closet built on part of it making the wall shorter and closing in on yet another big opening and providing another seating or tv nook that new angle will provide .. You have a lot of space here ..unfortunately your dining room furniture is a bit large ..but beautiful ...so ...try some different scenarios and come back ...with more photos after you try them out....enjoy the process ...it takes time to make things fit for an enjoyable living room experience . Unless you will replace the sofa ...and buy a sectional sofa and ottomans or poufs that can easily be moved around even to watch tv if you you place a tv on the new filled in wall divider , you will have to try and make it all fit and be comfortable for you and your guests to enjoy and be cozy around the fireplace .
Luckily you have options ..the room is big enough to make sure your needs are met .

First issue is that you have plaster cove ceilings. If you start building or removing walls you are going to ruin the look of your ceiling. IF you can even find a plasterer that could fix the ceilings, it would be very expensive.

Thank you for all your comments,
I will get back with my answers.

Yes, I plan on replacing all the floors, would prefer wood.
Removing the carpeting.

Furniture will be replaced.

Where to place the tv, if not over the fireplace.

Tiltable wall mount for tv?

Okay we need a lot more info from you as to what you are actually changing.

You could certainly build a closet between door and window! It may not be deep enough for hangers so you'll have to go for a series of hooks instead. As for the tv over the fireplace, go for it. That's what I have in my home and there's no weird distortion and you won't get carpal tunnel. People who say it's a horrible idea have never lived with a tv over their fireplace. If you feel your couch will have too much space behind it when it's facing the fireplace, add a sofa table behind couch. One with storage for gloves, hats, etc would be handy for you front door. Good luck!

My Tv sits on a tall console and it's never been an issue. My living room is long like the one pictured above and the height is perfect for us.

I’d like to have L or backwards L seating, whichever way the torontobluejays2018@hotmail.com will be positioned

Yes tilting bracket, nothing wrong with a TV over the fireplace . And it gets it up and out of the way and not sitting on a piece of furniture.

It appears that your dining set is too large for the dining area and the end chair of it encroaches on the space in front of the fireplace. Your kitchen table seems it would be a better fit; maybe a drop leaf table would work for that small dining area. Consider putting the TV on the wall opposite the window. Set it on a swivel base so you can adjust it when needed. Since the mirror above the FP is just reflecting the ceiling and that wall you don't care for, I'd replace it with some beautiful art no wider than the firebox opening.

The pics that are posted are real estate photos, I don't think that is the OP's furniture.

It has to start with answering the question: what problem are you trying to solve? Is it just about updating the furniture and finishes, or is there more to it than that? One problem you’ve noted is the need for a front closet (there’s one I don’t have an answer for you on, sorry). Are you trying to fit a tv in there? The current layout is logical and inviting, so unless there’s a need (such as, you need to fit more people), I’d not mess with it. I’d put the tv in a cabinet on that big kitchen wall—it’s begging for attention. Other than that, I’d just pick a style, update the furniture, get your new floors, modernize the living room/entry partition and maybe the fireplace and call it a day. I wouldn’t go looking for trouble by knocking down walls, etc as what you’ll be left with will be new and different but certainly no better. It’s actually a nice, well-proportioned space that needs updated finishes but no big structural things.

To begin

1. Remove pony wall and peek a boo wall above it

2. Remove mirror over fireplace and all curtains

3. Decide on flooring

4. Check out long living room floor plans on Houzz and decide what look you want.

5. Go shopping and see what you love ........try all price point stores to get a feel for what is being shown for homes today. You are NOT buying, only looking and take your inspiration pics with you.

6. Buy the perfect sofa for the room that is comfy and that you love in a color/fabric you love.......

7. Choose paint color that will make the sofa look even better as per your design choices found on Houzz. If you want a 'color' as opposed to a neutral, consider going two to three shades lighter than the color you love as the color on the wall will reflect off each other and intensify.......trust me and Sarah Richardson and Candice Olsen!

8. Paint living room and dining room.

9. Install flooring.

10. Install sofa.

11. Post pics of what you have done so far, a great deal, and let Houzzers help you design the room you are striving for.

PS: If you adore the fireplace clean it up, if now decide what style of fireplace you want and make it happen after you tear out the pony wall, etc.

I need help with layout.

All furniture will be new.

Floor will be replaced and new kitchen.

That’s why I need ideas before I purchase any.

I like to make the fireplace the focus.i really don’t mind it being above the fireplace.

I thought the couch across would be far enough.

Dining room set, even if a different one, will most likely take up same amount of room?

Maybe it would be a good idea to close up wall between dining and kitchen?

Kitchen needs to be remodelled.

I don’t like the layout.
I’ll post some pictures.

Perhaps pot lights in living room and kitchen.

I would like to build a closet at entrance.
Side of closet between main door and window.

Next to it a bench, behind the closet/bench a long couch. (Across fireplace).

Kitchen

Kitchen and hallway

For
Some reason my pictures are not posting.

I see all your pictures. 12 of them.

If I have the tv on the kitchen wall... I’m about glare.

I’m. Or any designer, I wish I could have a drawing of how this could look. Either way...

For dining room... if you don't have a hutch on the fireplace wall could you turn the table lengthwise so it fits better in the space? Or consider a round table that works there?

If you need a coat closet next to the front door, I suggest you borrow space from the room next to the hinge side of the door and have a closet built there. Personally I like the pony wall on the other side of the door. You could add hooks for the jackets, hats, or umbrellas of guests. I personally do not care for a TV over a fireplace, so I would suggest you have the TV on a small table with casters on the wall between the kitchen and living room.