This is not from assignment, something on my notes.
With $f \in L^1 \cap L^q$ for a $q > \frac{3}{2}$ and we take its convolution $u = \frac{1}{4 \pi|x|} * f$, we can show that $u$ is in $L^p \cap L^\infty$ for all $p > 3$.
My attempt was: We know that $\frac{1}{4\pi|x|} = (\frac{1}{4\pi^2 |\xi|^2})^\vee$ ($\vee$ means inverse fourier transformation). Since $\frac{1}{4\pi^2 |\xi|^2}$ is in $L^1 \cap L^2$, $\frac{1}{4\pi|x|} \in L^2 + L^\infty$. Write $\frac{1}{4\pi|x|} = G_1 + G_2$, where $G_1 \in L^2$ and $G_2 \in L^\infty$. Then we consider $G_1*f$ and $G_2*F$ separately, and use generalized Young's inequality. However I am only able to prove that $u \in L^p + L^\infty$ this way, which is not what is wanted.
The shorter proof would be using Lorentz spaces and since $\frac{1}{|x|}\in L^{3,\infty}$ and since $f\in L^1\cap L^{q} \subset L^{3/2,1}$ by interpolation, you deduce that $\frac{1}{|x|}*f\in L^\infty$ since the dual of $L^{3,\infty}$ is $L^{3/2,1}$. On the other hand, since $f\in L^r$ for any $r\in(1,3/2)$, by the Hardy$\unicode{x2013}$Littlewood$\unicode{x2013}$Sobolev's inequality $$ \|\frac{1}{|x|}*f\|_{L^p} \leq C \|f\|_{L^r} $$ with $\frac{1}{p} = \frac{1}{r} - \frac{2}{3}$, and $r>1$ is equivalent to $p>3$.
Then as you say, a longer but more elementary proof can be obtained by cutting the functions. You can write $\frac{1}{|x|}$ as a sum in $L^2+L^\infty$, and more explicitly $$ \frac{1}{|x|} = \frac{1}{|x|} \,\mathbf{1}_{|x|<1} + \frac{1}{|x|} \,\mathbf{1}_{|x|\geq 1} = G_1+G_2 \in (L^1\cap L^{3-\epsilon}) + (L^\infty\cap L^{3+\epsilon}) $$ Then again you have to prove separately that $f\in L^\infty$, and then that $f\in L^p$.
So $\frac{1}{|x|}*f \in L^\infty$.
So $\frac{1}{|x|}*f \in L^p$ with $p>3$.