It looks like you've removed space for a dining room table, which could be a resale issue. It makes sense to open up the hallway area to gain space in the living area. If your closet room just has the small closets like you've shown in your plan, it could potentially be an office space, which is fine, and doesn't need a bathroom. You can call it a bedroom but that's way too small for anything other than a nursery. The closets you are adding are so small you're not really gaining much though, even for out of season clothing. I'd base the decision on the family room and dining space versus the extra room, not based on the closets. But where did your kitchen go??? You can add the office/closets without affecting the kitchen.Just open up the short wall from the kitchen toward the hallway. If your main priority is closet space, post the plan for your upper level with the bedrooms so you can get better suggestions.

Hi @calidesign, thanks for your comment. I'm moving the kitchen and dining area to the lower level of the back split, here is the design. My main question is if it would be 'taboo' or 'odd' to add a closet room to the main floor?

It would be very odd to have a "closet room" in that location. But you can call it an office and it make it work. I don't understand the laundry and office combo though. Why not make the "closet room" the laundry area with storage. You can run the washer/dryer along one wall and put more closets along the opposite wall. That frees up the larger space for an actual office which could also be used as a bedroom. Move the bathroom doorway to the hall between the bath and the office so it's more accessible to that room and isn't so exposed at the stairs.

Rather than moving the kitchen downstairs could you leave your first floor as is and move your master suite downstairs? I will say in our first home we had no room for a master closet on the bedroom floor, so we moved it to the finished basement. Kind of odd, but at the time it worked so well because it was on the same floor as the laundry and since my husband had to be up at 4am for work, he could head to the basement bathroom to get ready and avoid disturbing me or our then babies. Then later, the babies could stay nearby in the play room while I got ready in the basement too.

As long as you have kept a closet in the Master and the future closet you are wanting can be used as a flex room to a future buyer I don't see anything wrong with that. Though when you do put the house on the market, I'd make it a room that would be more appealing to a future buyer as if you present it as a closet it would show that there is a storage shortage and become a negative.

These are all very strange adjacencies. Are these the same scale? The "Ground" floor footprint doesn't appear to match the "Main" floor leg of the 'L'. Show the rest of house. Where is the actual "Main" floor, the one in front of the "back split" prior to going up or down the split level staircase, assuming that has the Living room, but then where are the bedrooms?

2 floors with tubs but no bedrooms on those. Laundry (desk) with outdoor living. An office is better situated next to Family room.

7' is not going to work to call it a 4th bedroom, but it could easily be used as an office by another homeowner.