PhD Student reapplying to other PhD program, what to indicate in CV?
Since every country/state/university has its own regulations on Ph.D. programs, my answer might carry little value to your concrete situation.

I dropped my first Ph.D. program last year due to some financial difficulties. It was the 4th year of my Ph.D. life. I am currently enrolled into another PhD program after a prolonged period of struggling. I think I can totally understand your situation. 


Put your current PhD program into your CV, mark yourself as "Ph.D. student" because you are. And this actually helps since you already know (more or less) how academia works and how to proceed with your research. You are not a Masters student, don't put "Master" there.
Like in any CV or application letter, honesty is always appreciated. Explaining your situation would help them to understand you and your goal (which I assume is to continue with your research).
It's really subjective. Recommendation letters don't matter THAT much for Ph.D. students compared to Master or Bachelor students. What you really need is a quality list of publications and/or projects in which you have participated.